McGrath admits Government measures won't meet full needs of struggling families

Doubling of the proposed energy credit to €227 set to be a key measure in the cost-of-living package, along with targeted supports

The Government has acknowledged it can't meet everyone's needs but some measures, such as a proposed energy credit, will make a difference.

The Government's package to address the spiralling cost of living won't meet the full needs of struggling families, the minister for public expenditure has admitted.

A doubling of the proposed energy credit to €227 is set to be a key measure in the cost-of-living package, due to be announced on Thursday, along with a number of targeted supports.

But Michael McGrath has warned that the Government must be "careful" in how public money is spent and this will be balanced against the reality that people are under pressure.

"We do recognise that the current inflationary cycle that we are in won't last forever," he said. "The forecast is that it will ease in the months ahead.

We don't want to do anything that makes the situation worse.

"We don't want to end up chasing and ultimately driving inflation to a higher level and that is the advice that we are receiving from an economic perspective," Mr McGrath said.

"So what we will see today are a small number of measures that can be implemented quickly that will provide some relief to people — perhaps not as much as people would like or as much as many people would need. 

We acknowledge that won't be able to meet all of the needs that are there.

"But I think what we will announce today will make some positive difference."

Mr McGrath indicated that a number of announcements made in October's budget would be brought forward and implemented sooner.

He cited the 50% fare reduction for young people using public transport, a €10 increase to the working family payment, €200 rise in Susi grants, and increases in the back to school clothing and footwear allowance.

"There were a lot of measures that were announced in the budget," he said. "It is open to Government to select any one or a number of those to seek to bring them forward where that is possible and these are measures that are funded for this year."

Changes 'within weeks'

He said any changes to payments or new supports would be rolled out within weeks.

Asked about the fairness of a universal energy credit payment, Mr McGrath said: "There will be certainly some people who don't need it who will get it, I would acknowledge that."

He said the Government had looked at a mechanism to allow people opt out of the universal payment but that wasn't possible.

"It's a combination here of trying to ensure that whatever we decide can be implemented quickly, as in within the coming weeks, and also recognising that while many people who are on welfare are really struggling and definitely need targeted help, there are people above those income levels, who are also struggling who might have a high mortgage or childcare costs or travel costs to work," he told Newstalk Breakfast.