Cost of living crisis: Varadkar 'not ruling out interim measures' but none are planned 

Leo Varadkar said while the situation with energy and fuel costs would be monitored, it was not planned at this time to take substantial action prior to the budget. Picture: Gareth Chaney/ Collins 

Tánaiste Leo Varadkar has dismissed calls from opposition parties for an emergency budget to deal with the cost-of-living crisis this summer, saying: “I would argue we’ve done that already”.

Speaking to reporters in Dublin on Thursday morning, Mr Varadkar said that with the reduction in excise duty on fuel, reduced public transport fares, an increase in fuel allowance and the €200 electricity rebate, that came to €1.4bn worth of measures already taken by Government.

“We think October is the best moment to make that further intervention but we will continue to monitor things as they go,” he said.

On Thursday morning, a new report from the ESRI highlighted how almost three in 10 (29%) of households in Ireland are in energy poverty, the highest proportion in over 25 years. A double social welfare payment, similar to the Christmas bonus, was among the suggestions of ways to support households dealing with soaring energy bills and grocery costs.

Inflation is at its highest level in 38 years, according to the CSO, and the opposition has called for an immediate package of measures to help struggling families.

Sinn Féin finance spokesperson Pearse Doherty said the Government’s refusal to act was “inexcusable” and inflation figures pointed to how urgent the need was.

Reacting to the ESRI report, Labour’s social protection spokesperson Seán Sherlock said the Government “has the power and the resources to help those most in need, and they must get on with the job without delay”.

Mr Varadkar, however, said while the situation with energy and fuel costs would be monitored, it was not planned at this time to take substantial action prior to the budget.

“We do understand the impact this is having on household incomes,” the Tánaiste said. 

A lot of people are really feeling the pinch. And some people are really struggling now to pay the bills and having to make very difficult choices about what they spend their money on.” 

He said the Government “wasn’t ruling out” introducing measures to help struggling families, such as the double welfare payment suggested by the ESRI, before the budget in October, but that a comprehensive set of measures would be rolled out at that point.

Mr Varadkar said: “We're working towards another package of measures to help people with the cost of living and that will be on budget day, which is just over three months away.” 

He added he believed the measures should be both universal and targeted, as the ESRI research had shown people on middle incomes were also experiencing energy poverty.

Regarding measures that could come ahead of Budget 2023 in October, the Tánaiste said the Government was worried about inflation and would be keeping an eye on the situation.

“I don’t think anyone expected inflation to rise as high as it has, or as fast as it has,” he said. “That’s why we’d have to keep monitoring this as a dynamic situation.

“And that’s why I’m not ruling out interim measures, but they’re certainly not planned. At the moment, the next set of interventions will happen in just over three months' time, on budget day.”