Background information

In February 2023, the government announced a package of measures worth €1.2 billion for citizens and businesses struggling with high energy prices and increased costs of living. The measures are intended help people pay their bills.

Launching the package, Taoiseach Leo Varadkar said: “We know the cost of living remains very high and that people are under pressure. This package is about helping families who are struggling with the cost of living, helping businesses with their energy costs, and helping those on fixed incomes like pensioners and people on social welfare including carers and people with disabilities.”

Content of measure

The new cost of living measures include:

• A lump sum social welfare child benefit payment (monthly universal payment to parents) of €100 per child to be paid in June
• A €200 lump sum to be paid in April to all long-term social welfare recipients
• A one-off increase of €100 in the Back to School Clothing and Footwear allowance
• The temporary reductions in VAT on gas and electricity, from 13.5% to 9%, will be extended to 31 October 2023
• The temporary reduction in VAT on Tourism and Hospitality, from 13.5% to 9%, will be extended to 31 August 2023
• A phased restoration of the rates of excise on petrol, diesel and marked gas oil to take place in three stages up to 31 October 2023.
• The Temporary Business Energy Support Scheme will be extended, to 31 May 2023, and the level of relief will be increased from 40% to 50% of eligible costs, subject to a monthly limit.

There will also be a new grant for businesses using LPG or kerosene.

Use of measure

According to the government, the package is worth €1.2 billion.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Applies to all businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

Not available.

Views and reactions

Not available.

Sources

• 21 February 2023: Government announces new cost-of-living measures for families, businesses and the most vulnerable (www.gov.ie)
• 21 February 2023: Over €410 million in social protection measures as part of government cost of living supports (www.gov.ie)