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Irish Mirror
Irish Mirror
National
Justin Kelly

All we know about the cost of living package - from double social welfare to more energy credits

There has been much speculation in recent days over what Government chiefs will and won't include in next week's cost of living package.

The package will likely be announced on Tuesday but details have been emerging over the measures being discussed for inclusion.

The Government has vowed to help hard-pressed households with rising costs but have said inflation appears to have peaked and is not trending downwards.

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They have also said supports like increased welfare payments and energy credits can't continue indefinitely.

Despite this, households can expect a boost next week as the Government outlines its spring cost of living package.

An additional child welfare payment looks likely with families still struggling with mounting bills as a result of inflation. An energy rebate is also expected to be announced.

The additional child welfare payment will likely echo the double payment granted at the beginning of November in 2022. Parents and guardians were entitled to an additional €140 per child for that month.

Further doubling of other core welfare payments are also under consideration but no decision has been made.

Every household in the country was promised three €200 energy credits in last year's Budget and received the first two in November and January. The third is due in March but a fourth is possible despite reservations among some in Cabinet circles.

The public can also expect some blows in terms of fuel costs and the VAT rate. The hospitality sector will likely see VAT charges jump from 9% to 13.5%.

Additionally, the excise duty on fuel is also expected to increase. Motorists were granted an excise of 20c per litre on petrol and 15c on diesel last year in order to address the energy crisis, but these will be phased out in the future.

Tanaiste Micheal Martin previously indicated that he would like households to receive more energy credits in the second half of the year, as temperatures begin to plummet. While the cost of energy is currently falling, a return to cold weather this spring could see prices spike once again.

He also confirmed this week that the Government will help those most in need.

He added: “We are going to come forward with proposals to deal with people on low incomes and to target our resources at those on low incomes.”

The coalition leaders and senior ministers met Thursday evening to speak about future cost of living measures.

It is understood that Fine Gael pushed for a “mix of targeted and universal measures” while the Greens pushed back against a fourth energy credit.

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