As the cost of living crisis continues to bite, the Government looks set to sign off on a package that could save people over €200 on electricity and gas bills.
Targeted supports will help certain groups save over €200.
Under the plans, households that currently are in receipt of the fuel allowance payment look set to receive a once-off €99 payment.
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This extra fuel allowance payment is set to benefit as many as 370,000 people.
A reduction in the amount of VAT on gas and electricity prices is also set to be announced.
It's set to drop from 13.5% to 9%.
This will result in a saving of €49 on gas bills and €61 on a full year of electricity bills.
When the Taoiseach was asked why the VAT rate isn't going lower than 9%, he said: "There are limits to what you can do because VAT is quite complex – in contrast to a lot of the comments that were made in the Dail, it’s a far more complex arena now than simply saying to go to zero."
This reduction is set to be introduced after Easter once the Finance Act is amended.
One of the reasons why the VAT rate is being cut is to offset the cost of the carbon tax which is set to be introduced at the end of April.
The carbon tax increases on gas bills will result in a rise of no more than €1.40 per month and €1.50 for oil.
The Government has previously introduced measures to help with the cost of electricity.
Speaking in February, Minister for Public Expenditure Michael McGrath said: "The additional expenditure measures we are announcing today come to a total of €290million and will make a positive impact on the incomes of all households in our country.
"The centre piece is a cut in the electricity bill of every household of €200 including VAT.
"This will be accompanied by an additional exceptional payment of €125 to households in receipt of the fuel allowance.
"The fuel allowance payment will be made in March, with the credit of €200 including VAT for electricity being applied to electricity accounts in April."
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