An increase of the energy credit to €200 for all households has been approved by the Government.
As the Irish Examiner reports, the universal payment will be credited to energy bills in the coming weeks and is estimated to cost €400 million.
It has also emerged from the meeting that an extra €125 will be paid to fuel allowance recipients, which will be paid around St Patrick's Day.
The drug repayment scheme will be enhanced under supports package agreed by Government this evening.
A 20 per cent reduction in public transport fares has also been approved for services including Bus Éireann, Irish Rail, DART, Dublin Bus, Luas and Local Link. The fare changes will take effect in April until the end of the year.
It followed a meeting of the Cabinet sub-committee on economic recovery and investment aiming to tackle the cost of living.
Arriving at the meeting, Minister for Public Expenditure Michael McGrath said: “It’s not possible for the Government to fully address the entire impact of the current level of inflation."
"We do recognise that the current inflationary cycle that we are in won't last forever. The forecast is that it will ease in the months ahead.
"We don't want to end up chasing and ultimately driving inflation to a higher level and that is the advice that we are receiving from an economic perspective," Mr McGrath added.
Opposition response
The package has been criticised by opposition parties, including the Social Democrats who said owners of 62,000 holiday homes across the country are set to receive €12.4 million under the plan.
The party says many high-earners who receive this payment do not need it, while others in desperate need of substantial support, who are barely keeping their heads above water, deserve more.
Meanwhile, Labour Party finance spokesperson Ged Nash said the Government kept its promise by disappointing the people of Ireland with another half-baked attempt to address the crisis.
“The government told struggling families to expect little from their cost-of-living package and they did not disappoint.
"With the European Commission forecasting that inflation in Ireland will grow by 5 per cent again this year, today’s half-baked and tokenistic measures will ultimately lead us back to square one before long.
“Renters need a rent freeze. Workers need a pay rise and again Government is leaving them all feeling short-changed.
“The reality is that government is benefiting from a VAT windfall because of rising prices on fuel and energy with the Exchequer perversely profiting from the crisis.
"VAT returns in January were up €400m versus January 2020. There was €1 billion more in VAT collected than expected last year. By any measurement today’s conservative package from a conservative government has objectively failed to ensure that sufficient support finds its way to the people who need it most.
"The Government have chosen to cynically present long-promised Budget measures on free GP care, transport and childcare as components of this new cost-of-living package. This is an insult to the intelligence of the Irish people," Mr Nash said.
