Cost-of-living crisis: what changes can we expect from Government?

Michael Bolton

Since the end of 2021, the cost-of-living crisis has dominated the lives of people in Ireland. Fuel prices, food and groceries, heating, accommodation, and leisure have all increased significantly.

In last year's budget, a range of supports were announced by the Government to help those struggling with increasing prices. These supports are set to expire this month.

Discussions are currently ongoing among Government ministers as to which supports should be continued.

While ministers have pledged to help those struggling, they have stopped short of calling Tuesday's announcement a "mini-budget".

So what can we expect from Tuesday's announcement?

Social Welfare

All indications so far suggest there will be additional supports for those on social welfare, though it is unclear what exactly that may be.

Tanaiste Micheál Martin outlined that the most vulnerable in society will be the focus in Tuesday's announcement.

A double social welfare payment, which Sinn Féin have also called for, is reportedly under consideration.

Eviction ban

An eviction ban was announced in November and runs until March 31st. It was hoped this would bring down the number of homeless people, and ease pressure on tenants who may have been facing unlawful evictions.

However, as homeless figures continue to rise to record numbers, there have been calls for this to be extended. People Before Profit have called for the ban on no-fault evictions to be extended for the next 12 months.

Fuel prices

Motorists could face an increase in fuel prices as the excise duty reductions on petrol and diesel look set to be removed.

Prices at the pumps in 2022 were one of the major talking points and motorists will be hoping that any rises will be managed by gradual increases rather than a sudden surge.

Hospitality

In a measure that was introduced to help bring hospitality back to pre-pandemic levels, the VAT rate for hospitality was brought down to 9 per cent.

However, despite calls from hospitality groups to keep the VAT rate at this level, it is expected it will be brought back up to 13.5 per cent at the end of this month.

Energy

An energy credit scheme was introduced in the last budget, with three instalments of €2oo each to help households with rising energy costs.

There had been talks of a fourth instalment at a time when energy prices continue to rise, but it has been reported that the Green Party would rather wait until later in the year before introducing a fourth instalment.