No more 'money in your pocket' measures to ease cost of living crisis
As with households all over the world, Irish consumers suddenly find themselves having to think about their usage of fuel and electricity amid surging energy prices. Stock picture
There will be no more “money in your pocket” measures in the short term to alleviate the cost of living crisis, despite mounting pressure on households.
The confirmation from senior Government figures came as SSE Airtricity announced yesterday that it is to hike its prices from May 1. Its 250,000 electricity customers face an average increase of €338 on their annual bills, while its 85,000 gas customers can expect to pay an average of €333 a year more.
May 1 will also be when Electric Ireland increases its electricity prices by 23.4% and gas prices by 24.8% for its 1.2m customers.
Nonetheless, the Government has now made it clear that the public should not expect further credit or funding announcements, despite pressure from the Opposition and interest groups.
In an interview with the , Public Expenditure Minister Michael McGrath said there are “no immediate plans” to go any further than what has already been announced.
“There is a limit to the number of interventions that the Government can make,” he said.
"I appreciate that the next budget in October is quite some time away. But that’s why we are keeping this issue under active consideration.”
Mr McGrath also said the country is entering a “very challenging period” as the inflation crisis is “hurting people and is making the implementation of Government policy quite difficult”.
He ruled out any movement until clarity is given by the EU Commission as to whether some flexibility can be achieved on the Vat applied to fuel.
“We will get clarity shortly, we expect, in relation to what flexibilities there may be on the Vat front,” he said. “At that point, the Government then will decide whether a further intervention is possible.”
Speaking in Derry yesterday, Taoiseach Micheál Martin moved to dismiss reports that a new package of measures would be announced. Mr Martin said:
The Taoiseach said the Government will obviously be working with all of the stakeholders in terms of navigating a way forward, but that it has already allocated €2bn since the budget in alleviating pressures.
Meanwhile, Tánaiste Leo Varadkar raised concerns around the supply of diesel in the coming months but has ruled out the rationing of energy at this point.
He also warned that energy prices could double as a result of spiralling inflation and the Russian attack on Ukraine.
Asked about a possible package of measures to address the cost of living, Mr Varadkar said: “You’ll have heard the Taoiseach talk about a few options, you know, for example, extending eligibility for the fuel allowance, you’ll have heard Minister Ryan talking about some of the ideas around differential pricing, making it easier for people to avail of discount rates.
“We don’t want to use borrowed money to do this.
Mr Varadkar said forcing energy companies to put customers on the most beneficial tariff, as has been suggested by opposition parties, is something that is being looked at by the Government.
Asked if rationing of energy may be required in the coming months, Mr Varadkar said: “There is concern around the supply of diesel, potentially, over the next couple of months and then gas if the Russians were to cut off gas supplies to Europe.
“But we’re confident that with the contingency measures we put in place, we won’t be in a position to have to ration any energy.”
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