No additional €200 electricity credit agreed, but excise cuts to petrol and diesel will be phased out to avoid cliff-edge
Pensioners, carers, people with disabilities, and lone parents will all receive a €200 lump sum as part of a cost- of- living package due to be unveiled on Tuesday.
Parents are set to get a €100 child benefit lump sum while the Government has also agreed to increase the back-to-school clothing & footwear allowance by €100 in a bid to protect the most vulnerable.
All of these bonus payments will be paid in April and May.
Government leaders met late last night to agree the final details of the supports, which will also include a significant overhaul of a scheme to help businesses with electricity and fuel bills.
However, another €200 energy rebate for households has been ruled out.
In a major boost for hoteliers, the 9% Vat rate for the hospitality sector is to be retained throughout the summer.
It is understood that Finance Minister Michael McGrath brought forward a proposal to keep the reduced rate, but it was agreed that this would be the final extension and Vat will be brought back up to 13.5% at the end of August.
Government leaders thought that reintroducing fuel excise in one go could cause a significant disruption to fuel supply, particularly in the case of diesel, as the logistics industry depends on it for trucks and lorries.
As a result, the 20c cut will now be reversed in three stages, with a 6c increase from the beginning of June, a further 7c hike from the start of September and the final 8c being added on October 31.
Likewise, the 15c that was shaved off diesel will be put back on in increments of 5c in June and a further 6c in September and October.
Among the measures due to be announced on Tuesday are:
- An extension of the 9% Vat rate on electricity and gas until the end of October, at a cost of €15m per month;
- A €100 top-up for every child on the child benefit scheme;
- A €200 payment, similar to the Christmas bonus for pensioners, for those on disability allowance, carers, and widows;
- An expansion of the Hot School Meals Programme in primary schools.
The total cost of social protection measures secured by minister Heather Humphreys to help ease the pressure on families and households is over €400m.
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