Government signs off on lump sum welfare payments to offset rising costs of living; 9% hospitality Vat rate extended for six months

The total cost of the social protection measures is over 400 million euro
Government signs off on lump sum welfare payments to offset rising costs of living; 9% hospitality Vat rate extended for six months

Senior ministers gathered on Monday evening to finalise the plans before formal sign-off came this afternoon.

THE Government has signed off on a spring cost-of-living package which includes a series of lump sums to help welfare recipients.

An additional 100-euro payment to those getting Child Benefit is part of the measures.

Senior ministers gathered on Monday evening to finalise the plans before formal sign-off came this afternoon.

WELFARE

One-off 200-euro lump sums will be given to pensioners, carers, people with disabilities, widows and lone parents.

A 100-euro sum is to be given to Child Benefit recipients, and there will be 100 euro extra added to the school clothing and footwear allowance.

The total cost of social protection measures is over 400 million euro.

Pictured is Tánaiste Micheal Martin speaking to media before entering Government Buildings for this morning's meeting of the Cabinet. After Cabinet, the coalition leaders will be announcing the details of a cost of living relief package. Photograph: Sasko Lazarov / RollingNews.ie
Pictured is Tánaiste Micheal Martin speaking to media before entering Government Buildings for this morning's meeting of the Cabinet. After Cabinet, the coalition leaders will be announcing the details of a cost of living relief package. Photograph: Sasko Lazarov / RollingNews.ie

The Government will most likely not introduce an additional €200 energy credit in May but this will be reconsidered in the next full Budget.

The Hot School Meals Programme in primary schools will be expanded, State Exam fees will be waived and school transport costs will be kept at modest fees. 

The 9% VAT rate on gas and electricity has been retained.

BUSINESS

The 9% Vat rate for the hospitality sector is now to be retained throughout the summer until August 31, while the Temporary Business Energy Support Scheme (TBESS) is to be adjusted with the criteria simplified and the scheme extended for three months.

FUEL

Reduced excise duty on fuel has been in place, with a 21-cent reduction per litre of petrol. This will now be increased back in three incremental stages from June.

There was also a 16 cents reduction per litre of diesel but this will be increased back in four stages. 

The winter evictions ban, which was introduced in November and will expire at the end of next month, is not on the Cabinet agenda this week.

The measures come as a number of one-off measures introduced alongside Budget 2023 are due to expire at the end of the month.

Taoiseach Leo Varadkar said the measures are "more targeted" than those implemented in the past.

Tánaiste Micheál Martin said many households and businesses are still struggling with costs and there was particular focus in the measures on the vulnerable and most exposed in society.

The full range of measures will be published later today.

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