Further inf lation supports will be announced next week

THE Government is set to unveil an additional package of cost-of-living support measures on Tuesday, the Taoiseach has said.

Leo Varadkar told the Dáil the package will include both targeted and universal interventions to help people struggling with rising bills.

He insisted the measures would not amount to a ‘mini-budget’ and would be delivered within the fiscal parameters set by Budget 2023.

However, he said the Government had ‘some room to manoeuvre’ by using additional funds derived from reserves; underspend on a business support scheme; and anticipated revenue generated from the planned windfall tax on energy companies.

Mr Varadkar told TDs the measures may require a short finance Bill in the Oireachtas.

The Taoiseach defended the Government’s record to date, highlighting that ministers had already made 25 interventions to help people amid the inflation crisis.

He said: ‘We will do that as best we can for those in the lowest incomes and those who need the most help. It won’t be possible for us to do it for everyone as, ultimately, anything we do is done with taxpayers’ money and has to be recouped from people and businesses in the long run.’

A series of existing cost-of-living measures is due to fall away at the end of the month.

These include the energy credit scheme for households, a reduced 9% VAT rate on hospitality, electricity and gas, and the Temporary Business Energy Support Scheme. Excise is also due to go up on petrol and diesel.

‘I can assure people that there won’t be a cliff edge on February 28 when a lot of the measures are due to expire,’ said Mr Varadkar.

He said the package would provide targeted support for pensioners, low-income families and social welfare recipients, but he said there would also be some universal measures.

‘I don’t think it would be right to say to middle-income families that you’re being left out and that we’re doing nothing for you,’ the Taoiseach said.

Sinn Féin president Mary Lou McDonald said: ‘Just as last year, Government is moving far too slowly in responding.’

Labour leader Ivana Bacik expressed concern that the Government would indulge in leaking and ‘kite flying’ ahead of Tuesday’s announcement in an effort to gauge public reaction to potential measures.

‘Won’t be possible for everyone’