€500m deal to help households cope

A €500MILLION cost of living package will give every household €200 off energy bills next month was unveiled yesterday.

The deal, which was announced by Finance Minister Paschal Donohoe and Public Expenditure Minister Michael Mcgrath, will also see a 20% cut to all public transport fares.

Older citizens will get an extra €125 in fuel allowance and the threshold for qualification for the Drug Payment Scheme will fall to below €100.

It comes following a taxation and welfare package revealed in Budget 2022 last October worth €1billion.

Mr Donohoe said: “The rate of inflation that we have seen in the past few months has exceeded our expectations, mainly because of higher energy prices.

“While we expect the inflation rate to moderate from the second quarter of this year, it is nonetheless appropriate to respond to the increase in prices.

Mr Mcgrath added the Government had acted because it is “acutely aware” of the “challenges” everyone is facing.

But Sinn Fein’s finance spokesman Pearse Doherty said the Government had its “head in the sand” over the cost of living.

He added: “They don’t understand the pressure families and workers are under. With all the recent talk from ministers, including the Tanaiste, it is clear they still do not get it. They do not get where ordinary people are and they do not understand the fact that rents are spiralling out of control.

“In my county there was a 24% increase and across the State there was an average 10% increase.

“The Government does not understand the impact this is having on those on low and middle incomes.”

Labour leader Alan Kelly said the package was “not enough” to realistically address the rising costs people are facing.

He said: “I won’t just dismiss it, but it’s not going to go far enough. I predict the Government will be back at this in a couple of months.”