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Dáil
‹ Ceisteanna ó Cheannairí - Leaders' Questions

Cost of living and budget measures

Summary

Deputy McDonald attacks rising prices and says the coming budget must help households, workers and families. The Minister defends recent tax, energy and mortgage supports, says he will not pre-announce the budget, and the exchange turns into a partisan argument over Government credibility and Sinn Féin’s proposals.

The budget the Minister's Government announces in two weeks' time must be about ending the rip-off, getting costs under control and supporting workers and families. Households struggle just to make ends meet, hammered by soaring prices at every turn. Yesterday, Kantar reported that grocery prices have shot up again in the last 12 weeks. Of course, people did not need a research report to tell them that; they feel it every time they go to the supermarket. Under Fianna Fáil and Fine Gael, living costs have become unaffordable and people cannot believe their ears when they hear the Government dig in and insist it will not take action to tackle the crisis. Last week, we were in here raising the fact that three energy companies had announced big electricity price hikes to kick in from early next month. Since then, a fourth company, SSE Airtricity, has announced that it, too, will increase its electricity prices from October. Hundreds of thousands of households will be forced to pay out even more for their electricity. Some 300,000 households, remember, are already unable to afford their electricity bills and these are working people who just cannot keep up. Yet, the Government waltzes in to withdraw energy credits when they will be so desperately needed. I suppose we should not be shocked by yet another out-of-touch decision.

The public expenditure Minister, the Minister's colleague, Deputy Jack Chambers, said at the weekend that the Government is conscious not to increase costs for people but this is the same Government that has chosen to hike up the prices of petrol and diesel, home-heating oil, rent and student fees. The Minister, Deputy Chambers, also stressed that he will, as he put it, have a "return to normal budgeting" but there is nothing normal at all about the way households are being fleeced. There is nothing normal about the severity of these electricity price hikes. Fianna Fáil and Fine Gael allowed this energy rip-off to happen. At no point have they stood up to the big companies, which get away with gouging customers because, frankly, the Government is a soft touch when it comes to them. Not alone has the Government sat on its hands and done nothing but it has pushed back against our proposals to reform the energy market and get costs under control. The consequence of the Government's inaction is that households are left to wonder how much more they will have to pay out just to keep the lights on.

The Minister cannot wash his hands of his failure to tackle these runaway energy prices and then waltz in and cut the supports on which so many households depend. Níl daoine in ann glacadh leis na harduithe seo ar phraghas an leictreachais. Ní chóir don Rialtas an socar funnimh ar a bhfuil líon mór teaghlach ag brath a tharraingt siar. We have had Minister after Minister telling people that they understand the pressure that households are under. The Taoiseach, the Tánaiste and the Minister for Finance all say that they get it. They say that talk is cheap but Government talk and hot air is proving very expensive for workers and families. Lip service will not put manners on these companies, reduce energy bills or ease any of the pressure people are under. What we need is action. I invite the Minister today to tell households that he will protect them from these energy price hikes. I want him to tell them that there will be provision for energy credits in the forthcoming budget.

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Deputies

Hear, hear.

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Jim O'Callaghan Minister for Justice, Home Affairs and Migration Fianna Fáil

I thank Deputy McDonald for the question. At the outset, can I say that she does not have a monopoly on empathy or compassion for householders-----

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Nobody is suggesting that we do.

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-----when it comes to addressing the difficult circumstances that members of the public find themselves in as a result of cost-of-living pressures? It is important to point out that this Government has done a huge amount in respect of those cost-of-living pressures. By looking at what was done in budget 2025, the Deputy is invoking those measures today as a means of assisting people. She was not so supportive of those measures when we announced them 12 months ago-----

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Deputies

Hear, hear.

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-----and indeed 24 months ago. In budget 2025, a wide range of measures were introduced which had the effect of protecting members of the public from the excessive costs that were arising as a result of inflation. We introduced an increased payment in respect of the rent tax credit; it went up from €1,000 to €2,000. There was the extension of the 9% reduced VAT rate for gas and electricity. That very real measure was introduced for the purpose of ensuring we reduced the cost of energy for householders. We also saw the extension of mortgage interest relief until the end of 2025 and the €300 lump sum payment in respect of the fuel allowance. That is not even getting to the double-month child benefit payment.

The Deputy is correct in stating that there were two €125 electricity credits for households. They were very effective at a time when there were very high energy prices and inflation was out of control. Fortunately, we are now in a position where inflation has come down. Let us be clear that this Government will continue to introduce measures in respect of the forthcoming budget that will have hard-pressed families at the centre of them. My colleagues, Jack Chambers and Paschal Donohoe, will have that at the forefront of their considerations when it comes to the measures contained within the budget.

The Deputy will note that in April we decided to extend the VAT reduction to 9% on gas and electricity, a measure that will save households €70 for gas and €55 for electricity. This decision was further supported by the announcement made in June by the Minister, Darragh O'Brien, of a 40% reduction in the renewable electricity PSO levy for 2025 and 2026. Also, from September, there will be a significant increase in the number of people who qualify for the fuel allowance.

In terms of other pressures that people are under, and other costs, at the beginning of June the carers' support grant increased to €2,000, which is its highest level ever. That benefited some 138,000 carers. Last week the income level disregard increased for the carer's allowance. This Government has therefore introduced a whole range of measures in the past. I assure the Deputy that when the Government comes to announce the budget two weeks from now there will be measures in it that will have hard-pressed families at the centre of considerations.

We also need to look at the fact that parents of schoolchildren have been given considerable support by this Government. The back-to-school clothing and footwear allowance, which is paid out over the summer months, has been extended to foster carers for the first time. Parents who have schoolgoing children at present do not have to pay for schoolbooks because of measures that were introduced by the Minister, Norma Foley-----

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-----and brought forward by the Minister, Helen McEntee. The Deputy might not like the fact that a huge number of measures have been taken by this Government to relieve pressure on hard-pressed families. The fact of the matter is that any fair assessment of what is being done shows that this is being done by this Government.

I must say that the Deputy's concern about what is going to happen in the forthcoming budget is misplaced. I assure her that the Government will be placing hard-pressed families at the centre of its deliberations. I look forward to seeing Sinn Féin's budget proposals to see what it is putting forward. I will be interested to see if it will again adopt the measures we introduced previously and which it denigrated when we introduced them.

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The Minister does not have a monopoly on being out of touch or hollow self-congratulation because his buddies in Fine Gael are right there with him.

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It is right that inflation has tamed but costs and prices are still sky high. I have instanced four separate electricity companies that are telling us that prices are going up as early as next month. Prices are up and a record number of households cannot meet their bills. That is the reality of the situation. I will make no apology to the Minister or his friends across Fianna Fáil, Fine Gael and the Lowry crew for arguing the case for households, workers and families who are struggling in the here and now. I am simply stating that the Government should support our proposal, which it will see in our pre-budget submission, for the payment this winter of €450 in energy credits that households desperately need. If, as he says, the Minister shares an empathy and compassion and understands how badly families are struggling, he should have no difficulty confirming that the budget will contain that precise measure.

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I am the Minister for justice. I am not the Minister for Finance or the Minister for public expenditure.

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You are taking Leaders' Questions.

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I do not announce the budget terms two weeks before the budget is announced. We will all have the opportunity to hear the budget two weeks from now when it is announced by the Ministers for Finance and public expenditure. On hard-pressed families, the Deputy has not responded to the issues I have raised about the measures we have taken in the past.

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They cannot just be ignored.

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There are record levels of electricity arrears. That is the response.

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The Deputy cannot ignore the past.

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That is the response.

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The Deputy cannot ignore what we have done in the past and now try to claim credit for what we did previously in circumstances-----

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There are record levels of electricity arrears.

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-----when Sinn Féin did not support those measures at the time we announced them on a previous budget day. Let us consider the VAT rate on energy costs. We have retained the 9% rate. That will be dealt with on budget day and we will wait to hear what will be announced. I am not going to pre-announce the budget. What I will do, and what I assure the Deputy that the Ministers, Deputies Donohoe and Chambers will also do, is read carefully Sinn Féin's budget submission. If there are good proposals in it, they will give them consideration. If there are not, and it is just populist outrage, they will ignore them, as they should.

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