Energy rebate of €113 will do nothing to ease pressure on families, warns Labour

The party will table a motion in the Dáil calling on the Government to step in to tackle the rising cost of living across society

The Labour Party will seek the introduction of a carbon credit, valued at approximately €200 euro per household for households that will be earning less than €50,000. Picture: Rui Vieira/PA

The Government's €113.50 energy grant for households does not do enough to stop families encountering fuel poverty, the Labour Party has warned.

The party will on Wednesday table a motion calling on the Government to step in to tackle the rising cost of living across society, with finance spokesperson Ged Nash telling reporters at Leinster House that the rebate did not go far enough.

He accused the Government of not understanding the scale of the crisis.

He said there are far too many families across this country who are finding it harder by the week to make ends meet to pay regular bills.

"Quite frankly, we're of the view that the government simply doesn't understand the scale and extent of this problem for working families across this country," Mr Nash said. 

"And the idea that €113.50 for your electricity bill on a one-off basis is going to fix the problem is to disregard or not understand scale and extent of the problem."

Mr Nash said that Labour is asking the Government to "take action" to return some of the €1bn VAT windfall seen last year "to the pockets of workers and consumers who need it the most".

We know that VAT is, in essence, a tax on consumption and taxes on consumption impact on those who are less well off. 

Mr Nash said Labour will be calling for other measures in their motion on Wednesday: "There is a case to be made for the introduction of a carbon credit, valued at approximately €200 euro per household for households that will be earning less than €50,000 [per annum]."

He said that the household benefits package and the fuel allowance only applies to "certain numbers of families across this country".

"It doesn't apply to everybody. We've also called for the expansion of the fuel allowance for a number of additional weeks and to include additional families within the national fuel package system to assist people through these very, very difficult times."

His colleague Rebecca Moynihan said that the cost of living rises were "biting hard" in the housing market, saying that a rent freeze was needed to allow housing output catch up with demand.