Labour want to cap childcare costs at €200 a month and €9 a month public transport ticket

(Left to right) Leader of the Labour Party in Ireland Ivana Bacik, Spokesperson for Finance Ged Nash, Senator Marie Sherlock and Senator Rebecca Moynihan at the Labour Party's pre-Budget submission. Photo: Sam Boal/Rollingnews.ie

Labour is calling on the Government to immediately introduce a cap on childcare costs of €200 a month, which would cost the State €275m in 2023.

The party also wants a €9 per month “climate public transport ticket” — which would cost €300m for a six-month trial basis — as well as free GP care for all under 18s which would cost the Exchequer €100m.

Announcing their alternative budget on Thursday, the party proposed a number of cost-of-living measures that would total €4bn.

Speaking at launch, Labour leader Ivana Bacik said “Ireland is just not working” and “we need an Ireland that works for all.”

She called for “creative measures” from the Government to tackle the cost-of-living crisis. The party wants a €600m windfall tax on energy profits - rising to €800m in 2023 - a levy on data centres, and a price cap on energy costs.

The party is proposing a €400 carbon tax credit, an increase in social welfare rates by €20 from October, and a double payment in October and December.

Labour said they would introduce a €400 refundable carbon tax credit for around 500,000 energy-poor households and increase the fuel allowance payment by 20% and extend eligibility.

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The party’s finance spokesman Ged Nash said: “Ireland is a rich country, but for too many our country simply does not work.

“We have a housing model that's broken, climate targets missed, crippling costs to childcare and now we are in the middle of a cost-of-living crisis that will see, in total, half of all Irish families in energy poverty.”

Mr Nash also said the Labour Party would remove VAT on newspaper sales to ensure quality journalism and investigative journalism could continue to hold those in power to account. Labour also proposed an increase in the minimum wage to €12 and to increase the small benefit exemption by €500 to €1,000.

Housing

On housing, Senator Rebecca Moynihan dismissed claims by the Government that it is unconstitutional to bring in a three-year rent freeze. The party says tax breaks for landlords will not stop them selling up their property or evicting tenants.

Ms Moynihan said tenants who are spending more than 50% of their income on rent should not have to pay extortionate rents where landlords are making a profit after tax and covering the cost of their own mortgage.

The party also said they would fund a total of 12,000 social homes next year, and up to 8,000 affordable homes. They said the State needs to deliver up to 20,000 homes a year and said they would introduce a vacant homes tax, increase the vacant sites levy to 10%, and tackle land speculation and hoarding.