Cost-of-living measures, including public transport reduction and electricity credit confirmed

The government announced a number of initiatives on Thursday evening to tackle Ireland’s cost of living crisis.

Citizens will get a €200 credit on their electricity bills as part of the measures, while a 20% reduction on public transport fares has also been confirmed.

This last measure will only remain in place from April until the end of the year.

The government announced a number of initiatives on Thursday evening to tackle Ireland’s cost of living crisis. Photo: Julien Behal.

It has also been confirmed that a lump sum payment of €125 on the fuel allowance will be paid at the beginning of March to 390,000 beneficiaries.

Other measures include a reduction of the Drug Payment Scheme from €144 to €80. The budget increase to the Working Families Payment announced on Budget Day will be delayed from June 1 to April 1. Finally, reduced ceilings for multiple children on school transport costs at €500 per post-primary family and €150 for primary school children.

Speaking at a briefing this evening, Public Expenditure Minister Michael McGrath said people who bought an annual travel card “will get extra credit” to account for the 20% cut.

Commenting on the measures in a press release, Minister McGrath said: ‘The additional spending measures we are announcing today total €290 million and will have a positive impact on the incomes of all households in our country.

Citizens will get a €200 credit on their electricity bills as part of the measures, while a 20% reduction on public transport fares has also been confirmed. Photo: Sasko Lazarov/RollingNews.ie

“The centerpiece is a reduction in the electricity bill of each household by €200 including tax. It will be accompanied by an additional exceptional payment of €125 to households benefiting from the fuel allowance. The payment of the fuel bonus will be made in March, the credit of €200 including tax for electricity being applied to the electricity accounts in April.

“One of the main concerns when defining these measures is to ensure that timely assistance is provided to all households specifically targeted for energy costs, while using the social protection system to target additional assistance. on those receiving the fuel allowance.

“Other key spending measures include reductions in fees and charges across a range of government-provided services.”

Fiscal Measures Midnight
It has also been confirmed that a lump sum payment of €125 on the fuel allowance will be paid at the beginning of March to 390,000 beneficiaries. Photo: Julien Behal Photography

Finance Minister Paschal Donohoe said: “The rate of inflation we have seen in recent months has exceeded our expectations, mainly due to rising energy prices. While we expect the inflation rate to moderate from the second quarter of this year, there is still a need to react to rising prices and we are doing so today.

“Combined with the measures already announced, the government package amounts to 505 million euros, a significant change.”

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