Doubling of €100 credit for electricity bills on cards to help with rising costs

While there is an acceptance among Government ministers that increasing the €100 energy credit to all households is a blunt instrument, the mechanism is in place for a speedy rollout. File image.

A package of measures to ease the cost-of-living crisis could include a doubling of the €100 electricity credit for households, waiving of hospital fees, and subsidising of public transport. 

The Government is to examine “any and all” costs levelled by the State on the public, as it seeks to reduce the impact of rocketing petrol and diesel costs and the rising price of electricity, home heating oil, food, and rent. 

Among the main measures under consideration include:

• Increasing the €100 credit for electricity bills, potentially doubling it to €200;
• An extension of the fuel allowance — a hardship fund run through charities could be extended to help families cope with food and energy bills; 
• The amount companies can give in tax-free bonuses to be doubled from €500 to €1,000;
• In health, it is expected that fees associated with attending emergency departments could be waived, as well as charges associated with prescriptions and alterations to the eligibility criteria for medical cards;
• In transport, a suggestion that road-tax waivers and road tolls waivers should be introduced was shot down by the Green Party. Instead, it looks like some form of subsidisation of public transport will be examined.
• Education Minister Norma Foley has already announced a waiving of fees associated with this year’s State examinations, meaning those sitting the Leaving Cert will not have to pay the €116 fee and those sitting the Junior Cert will not have to pay the fee of €109.

The urgency for introducing the measure has been sparked by the annual rate of inflation hitting a 20-year high.

Diesel and petrol prices are up by between 32% and 36%, prices for electricity are up 22.4%, while gas is up 28%. 

Home heating oil has soared by 53%, while rents have shot up 8.4% over the last year. 

Officials in the departments of Health, Social Protection, Transport, and Education have all been called upon to bring forward quick solutions.

While there is an acceptance among Government ministers that increasing the €100 energy credit to all households is a blunt instrument — the wealthiest and poorest get the same amount — the mechanism is in place for a speedy rollout.

Following a day of fevered speculation, there were attempts late last night by senior Coalition figures to dampen public expectation as to what will be contained in the cost-of-living plan.

There was some annoyance within the finance departments that “so many kites were being flown”, which sources argued only raises expectations beyond what is actually possible to deliver.

Tánaiste Leo Varadkar ruled out any talk of a “mini-budget”, but it is understood the package being developed by ministers Michael McGrath, Paschal Donohoe, and Heather Humphreys will run to several hundred million euro.

Mr Donohoe has said that tackling energy costs, increasing welfare benefits, and examining tax reliefs are the main measures being examined, while work is under way in identifying further options to ease the pressure on families.

Tánaiste Leo Varadkar. PIcture: Gareth Chaney/Collins Photos

Mr Varadkar confirmed the three Coalition leaders have asked line ministers to come back with proposals urgently. He was speaking in response to Sinn Féin deputy leader Pearse Doherty who said that "workers and families are under pressure like never before" due to climbing costs of fuel, energy, and food.

He said that in the 12 months to December, inflation hit 20-year highs, childcare is a "second mortgage", and rents "continue to spiral".

Mr Doherty said it would be "crazy" if May's proposed increases in the carbon tax go ahead.

Mr Varadkar said the Government "acknowledges that the cost of living is rising" and "rising very, very fast".