Cost of living and food poverty
Deputy Doherty argued that families are under severe cost-of-living pressure, citing Barnardos figures on food banks, skipped meals and rising mortgage costs, and urged further action. The Tánaiste defended the Government’s €8 billion in support since 2022, listed measures already taken, and said targeted proposals for low-income households were being developed; procedural interjections and complaints about the answer were included in the exchange.
Tá oibrithe agus teaghlaigh ar fud an Stáit seo ag streachailt leis an ngéarchéim costas maireachtála agus tá daoine ag fulaingt. Feicimid ón staidéar a rinne Barnardos go n-úsáideann duine as gach deich dtuismitheoir banc bia chun bia a chur ar an bhord dá chuid páistí. Aréir, vótáil an Rialtas in éadan moltaí chun cuidiú leis na daoine seo, is iad sin, na daoine atá thíos léi agus leo siúd a bhfuil na costais morgáiste ag dul in airde acu. Caithfidh an Rialtas gníomhú.
Before the current cost-of-living crisis, the level of child poverty in this State was utterly unacceptable. This week, the Taoiseach chose to dismiss a Barnardos survey on the worsening situation for workers and families. Yesterday, representatives of Barnardos were in Leinster House, where they set out for Members the stark reality of what is happening for families at the coalface. The Barnardos report states very clearly that one in ten parents surveyed had to use food banks during the past year, which is double the number in the previous year. It goes on to say that one in five parents did not have enough food to feed their children at some point in the past 12 months and that 29% of children have skipped meals in order that their children could have enough to eat. Those damning statistics are a shame on Government policy. Many of these parents are in work, earning their poverty, as it is now being called.
The Taoiseach should reflect for just a minute on that stark reality and on what has happened on the Government's watch. It is unforgivable that families who are already saddled with out-of-control rents, soaring energy bills, high travel costs and the spectre of rising interest rates are going hungry because they cannot afford to fill the shopping trolley at the end of the week. That is the reality of the cost-of-living crisis. We all know that the Government cannot do everything, but it can do much more. That is why we need a comprehensive support package now.
Last night, the Government voted against two crucial proposals. It voted against targeted temporary mortgage interest relief for those who are seeing their mortgage costs rise by thousands of euro. Many who had their mortgages sold off to vulture funds are now seeing interest being charged at a rate of 7.5%, with further hikes on the way next month. The Government voted against this sensible proposal and it also voted against a spring bonus for those in receipt of social welfare payments such as disability or carer's allowance and for pensioners. Such a payment would support the most vulnerable - pensioners, carers, lone parents and citizens with a disability - who have been hardest hit by the cost-of-living crisis. This proposal would go a long way to supporting those who are suffering at the sharp edge of the cost-of-living crisis. Any Government that is serious about tackling financial hardship and poverty would have supported and implemented this proposal. This Government chose not to do so. Both proposals are urgently needed.
We know that certain measures are set to expire at the end of this month. The rate of VAT on electricity and gas is set to rise, despite households facing sky-high energy bills. Taxes on petrol and diesel are set to rise. Fuel prices are increasing at the pumps. We must not forget that the Government has taken no action whatsoever to reduce the cost of home heating oil, despite it being the source of heating for one third of Irish households.
Households are struggling. Many of them have already been pushed to the brink, despite all that happened in last year's budget. They know that action is required. We know that action is required to protect and support them in the months ahead. The Government yesterday decided to vote against two proposals that we put on the table with regard to mortgage interest relief, and a spring bonus and other supports for the most vulnerable. I ask the Tánaiste, on behalf of those individuals who are seeing their mortgages increase, whether the Government has a proposal it is planning to bring forward to support them with their increased mortgage rates. Given that the Government has ruled out a spring bonus, what does it propose to do for those who are really suffering, visiting food banks and going without meals, as described in great detail by Barnardos?
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Ar dtús báire, ní aontaím leis an Teachta ó thaobh an mhéid tacaíochta atá tugtha ag an Rialtas do mhuintir na tíre seo, go háirithe don dream atá ar ioncam íseal. Níl aon amhras ach go bhfuil suas le €8 billiún curtha ar fáil ag an Rialtas ó thús 2022 chun cabhair agus tacaíocht a thabhairt do chosmhuintir na tíre seo i gcomhthéacs an ghéarchéim costas maireachtála. Níl aon amhras ach go bhfuil agus, go háirithe i rith an gheimhridh, go raibh géarchéim uafásach ann. Rinne an Rialtas cinneadh dearfach cabhair agus tacaíocht a thabhairt do dhaoine chun an brú a ísliú chomh fada agus is féidir linn.
I can recall the last time we introduced measures as part of the cost-of-living and budgetary package last autumn. I think the Deputy would be humble enough to admit that the measures we announced exceeded the Deputy's own presentations at that time-----
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I think humility is needed over there.
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The point I will make is that, from the beginning of 2022, more than €8 billion has been allocated to specific tax and expenditure measures to try to help people. We are going through a cost-of-living crisis. There were initial inflationary pressures coming out of Covid because of supply chain issues. Everyone accepts that these pressures were very much exacerbated by the war in Ukraine and the energy crisis that unfolded. The Government took very significant decisions on that basis. In fact, the ESRI has found that the once-off measures we introduced as part of budget 2023 will insulate most households from rising energy prices this winter. The Irish Fiscal Advisory Council reckoned that we got the balance right between providing relief to households and firms and not making the inflationary situation worse. We understand, of course, that some measures are due to expire at the end of this month. The Government will be holding a series of meetings in the coming days to ensure that there will not be a cliff edge and that we will continue to support families who continue to be under pressure because of the cost-of-living situation.
Inflation appears to have peaked and is now trending downwards. That has to be factored in. The budget in 2023 included a total package of €11 billion. Some €4 billion of that comprised once-off measures. Some of it is still feeding through. A household in receipt of fuel allowance this winter will receive a total benefit of almost €2,000, made up of a €924 fuel allowance payment for the winter of 2022-23, a €400 fuel allowance lump sum and €600 of electricity credits. It is a significant measure by any yardstick.
We paid eight separate cost-of-living lump sum payments throughout October, November and December last year: a €200 living alone allowance lump sum; a €400 fuel allowance; a €500 working family payment lump sum; a €500 carer's support grant; a €500 disability support grant; a double child benefit payment; a double welfare payment in October and a further double payment as part of the Christmas bonus. In addition, the 25% reduction in childcare costs has put €2,000 and more back in pockets of parents. The cut in the universal social charge, USC, means that workers on the minimum wage will now remain outside of top rates of USC. We have introduced a new rent tax credit of €500 per year. All in-hospital patient charges will be abolished. We have extended and will extend coverage for free GP care and we will do much more. We will take decisions in the coming days to deal with the cliff-edge issue to make sure we can continue to support people who are under pressure.
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Prices are still rising. As the Tánaiste, his Cabinet colleagues and backbenchers slap themselves on the back in relation to what they have done, I urge them to listen to the words of Barnardos, not Sinn Féin, which is telling us what is happening out there in real life. Barnardos is saying that of those surveyed, one in ten visited food banks, one in five did not have enough food at some point last year and nearly one in three skipped meals so that their children could eat. The pressure on food banks and charities is growing. Prices are continuing to go up and people need a further response from the Government to meet the needs of families.
We have put forward proposals. Many of the families queuing at food banks own their own homes. They are paying mortgage interest rates amounting to thousands of euro more, but the Government has decided to do nothing for them. Does the Government plan to do anything for those who are now paying 7% or 7.5% interest on their mortgages? The Tánaiste has ruled out a spring bonus and other supports that we have proposed. What does the Government plan to do for those families I have mentioned - the one in ten who are going to food banks, the one in five who do not have enough food and the one in three who are skipping meals so that their children can eat? Under this Government's watch and the Tánaiste's leadership, that is what is happening in the real world.
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Under our leadership, we are bringing in free primary schoolbooks for all children next September and we have waived examination fees. We had a once-off reduction at third level in this academic year of €1,000-----
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-----and there will be a €400 to €500 reduction next September. We have increased Student Universal Support Ireland maintenance grants, with a once-off double monthly payment before Christmas. We have had a 20% public transport fare reduction.
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Is the Tánaiste going to answer my question?
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He is not answering it. What about the people going to the food banks?
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What the Deputy has done is use a clever device. We all talk about the Christmas bonus and the Deputy uses a nice, politically clever device - hey presto, a spring bonus. Let us have a summer bonus. Let us have an autumn bonus.
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Clever politics? The Tánaiste is trivialising a serious issue.
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The Deputy is attempting to be clever but I do not think it fools people. What is more important-----
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There are people queuing for food on the streets of this State.
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Let us take the issue of mortgage interest relief. The people that the Deputy identified in his presentation would not actually benefit as much from mortgage interest relief as he might think. As he knows from previous experience, it was the top two deciles who benefited most from it. Is the Deputy really as committed as he suggests to those on the lowest incomes?
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We are going to come forward with proposals to deal with people on low incomes, and to target our resources at those on low incomes.