Written answer
Cost of Living Issues
244. Deputy Albert Dolan asked the Tánaiste and Minister for Finance the proposals under consideration to alleviate the rising cost of living in Ireland; and if he will make a statement on the matter. [50969/26]
Comment on this
As the Deputy will be aware, Government has already intervened on a significant scale, with two packages of supports, worth over €1 billion, to help mitigate the impact of high energy prices on households and businesses.
The first package of supports, introduced at the end of March, reduced the tax on fuel, enhanced the Diesel Rebate Scheme and extended the fuel allowance by an additional four weeks.
A further package of measures was introduced in April. This further cut the tax on fuel, bringing the total reduction on diesel to 32 cent per litre, 27 cent per litre for petrol and 7.4 cent per litre for green diesel. The scheduled increase in carbon tax has also been delayed to later in the year, while support schemes have been introduced for the agricultural and haulage sectors.
Last week, the Government announced that the temporary reductions on fuel would be further extended until the end of August, but a pathway was also established to gradually unwind the tax on fuels to pre-conflict levels, striking the balance between responding to the pressures of today and maintaining our public finances on a sustainable pathway over the medium-term.
Of course, these temporary supports followed a range of permanent, sustainable measures introduced as part of Budget 2026, such as the extension of the reduced rate of VAT on gas and electricity and increases to social welfare payments.
This Government has shown that we will not hesitate to act when appropriate, but we have also made clear that the best way to provide assistance with the cost of living is through permanent, targeted measures introduced through the normal budgetary process.
Government will set out the parameters for Budget 2027 in the forthcoming Summer Economic Statement.