Extra child benef it payment could ease cost of living pain for families
THE Government is considering introducing an extra child benefit payment to help families cope with the cost-of-living crisis.
Cabinet sources said the bonus payment is one of three options Coalition leaders are considering to ease the financial hardship caused by rampant inflation and spiralling energy costs.
It had been widely expected the Government would opt to give all householders a fourth €200 energy credit and this still remains an option under consideration.
A senior Government source told the Irish Mail on Sunday: ‘A lot of universal payments are under pressure because of cost factors and the need to prioritise targeted measures. An extra child benefit payment would represent a form of compromise, so we are not seen to ignore middle Ireland.’
One minister involved in the ongoing talks on the issue, said the ‘three key issues’ still on the table for discussion are, ‘electricity credits, excise on fuel and child benefit’. Another Cabinet source stressed the urgency to clarify the latest cost-of-living support.
However, differences remain between the larger two parties and their smaller Coalition partner.
A minister told the MoS: ‘The Greens understandably have their ideological position, but Fine Gael and Fianna Fáil have been warned that no one in the public will thank us if we increase petrol and diesel.
‘Restoring full excise would bring the price very close to the €2 mark.’ Finance Minister Michael McGrath has set down a two-week deadline to finalise what economic supports will be retained.
This process will begin with a key meeting tomorrow between Mr McGrath and the hospitality industry leaders. It is widely expected the minister will signal the end of the lower 9% VAT rate currently enjoyed by the sector.
The cost of retaining the measure to the end of the year is €427m.
However, Mr McGrath told the MoS yesterday: ‘I’ve always felt it’s important to engage in dialogue and to listen to each other’s views.’