Government to 'wean' people off cost-of-living supports as €60m paid to struggling families

Coalition leaders will decide this week which supports to phase out — while opposition TD says inflation is continuing to bite 

Hard-pressed families have been availing of supports aimed at easing cost-of-living pressures and some warn that it may be too early to withdraw all such State payments. Picture: iStock

Almost €60m was paid out to struggling households in additional needs welfare payments last year, as the Government plans to “wean” people off cost-of-living measures in the coming weeks.

Government leaders are to meet in the next week to decide what supports will not be extended beyond the end of February.

The energy credit for households, a reduced 9% Vat rate on electricity and gas, and a reduction in excise duty on petrol and home heating oil are some of the cost-of-living measures introduced by the Government last year that are due to terminate at the end of February, as well as the ban on energy disconnections.

Green Party leader Eamon Ryan said the Government will likely scale back financial measures on a phased basis.

“Yes, we have to unwind the measures, the exact timing of when it's done on a stage basis, or phased basis, that's more likely in that case,” he told RTÉ Radio One.

The energy credit worth €200 is likely to be extended but a cut to excise duty on petrol, diesel, and home heating oil is expected to end which will see the price increase at the pumps.

€58.2m paid for additional needs

New figures from the Department of Social Protection, supplied to Labour TD Seán Sherlock, show the State paid over €58.2m to 97,224 applicants for expenses such as energy bills, rent, and mortgage payments, clothing, child-related costs, and for financial help with illness.

This is an additional €17m paid out in comparison to the total figure spent in 2021 on additional needs payments to people struggling with the cost of living.

The breakdown reveals the months of August, November, and December are when people across Ireland struggled the most with paying bills and everyday expenses.

The department can make additional needs payments to help meet expenses that a person cannot pay from their weekly income.

The State paid out €35.4m alone on helping people pay their rent and meet mortgage repayments.

Over €5.7m was spent on clothing, €6.6m on funeral costs, €1.8m on household bills, and over €7.5m spent on general expenses in 2022.

“The increase in the number of payments and uptick in the amount that the Department is paying out clearly shows that the cost of living crisis is still biting,” Mr Sherlock said.

People just do not have the disposable income to meet the additional costs of living, for a fill of oil or a change of tyres for the car.

“I think that it is vitally important for government to refresh its campaign to make these payment schemes known to people and to ensure they are funded given the Taoiseach is talking about ending the cost of living supports,” he added.

Meanwhile, both Housing Minister Darragh O’Brien and Green Party leader Eamon Ryan said there have been no decisions made in relation to extending the temporary eviction ban but the situation is under "close review".

Mr Ryan said the Government has to take legal advice from the Attorney General on the matter.

It’s expected the VAT cut to the hospitality sector will not be extended beyond the end of February and Government sources said discussions will take place on whether to extend the temporary business energy support scheme (TBESS) for businesses struggling with soaring energy bills.