Cost of living increases
Deputy Cullinane raised sharp rises in household bills, inflation and energy poverty, warning that further carbon tax increases would add to costs. The Tánaiste accepted the pressure on households but said many increases were driven by international factors and pointed to budget measures such as fuel allowance, welfare and tax changes.
According to media reports this morning, thousands of households across the State are set to be hit with a rise in the cost of bin collections and TV packages along with more energy price increases. The Tánaiste will be aware that inflation is now running at greater than 5% and is likely to continue upwards next year. We also know that energy poverty is becoming a growing problem across the State. Energy prices are soaring. We will see a further increase in the carbon tax, which will increase fuel costs even more. It has been reported that households will face bills of an additional €400 this winter. In budget 2022, the Government announced a bare minimum increase to the fuel allowance income threshold of €20, which will reach only a limited number of households. What will the Tánaiste and the Government do in the coming months to address these soaring costs and the cost of living crisis so many workers and families face?
Comment on this
The Government acknowledges that the cost of living is rising and that a lot of bills have increased in the past few weeks and months and may rise again into the new year. The Deputy will acknowledge that many of these cost increases are driven by international factors, not Government decisions, and involve prices set by commercial entities rather than the Government. The Government provided in the budget for an increase in the fuel allowance, extending it to more people, increases in welfare and pension payments, which kick in from 1 January, and decreases in income tax and personal taxation for middle-income people in particular, something not supported by Sinn Féin. The average middle-income couple will be €800 better off in cash terms, paying less tax, than would be the case under Sinn Féin's proposals. We have provided for other measures that will help families, such as the increase in the Student Universal Support Ireland, SUSI, grant next year and reductions in the cost of medicines. Those are the kinds of things we are doing, but we acknowledge that, while they will help with the rising cost of living, they may not be enough to fully compensate families for it.