A doubling of the proposed energy credit to €227 is set to be a key measure in the Government's package to address the rising cost of living.
The package, which will be announced on Thursday, will see the proposed energy credit of €100 increased to €227, according to the Irish Examiner.
It is expected to be issued to households by the end of March.
Minister for Public Expenditure Michael McGrath has denied that measures being introduced in the cost of living support package are a ‘mini Budget’.
Financial intervention
“I’m not interested in what we call this”, he told Newstalk Breakfast. “This is a financial intervention by the Government. It is not a mini Budget.”
The Government had to be careful how it spent public money which came from taxes and borrowings, he added.
Mr McGrath said that the Government knew it had to intervene, but it had to do so in a way which helped and did not make the situation worse by driving up inflation. Economists were predicting that inflation would moderate during the year, he added.
The Minister acknowledged that the universal payment meant that some who did not need it would receive it, if the payment were to be targeted it would take time, and it was more important that people in need got the support now rather than in the summer.
People who were above the social welfare threshold were also finding it tough. Some people were “running to stand still” and that was why the payment was universal, he explained.
The Government was open to bringing forward subsidies and social welfare increases that were due to be increased later this year, said Mr McGrath.
The cost of living support package was a “small number of measures” which were being introduced quickly to help people meet their needs today.
Mr McGrath dismissed claims there was a difference of opinion between the three parties in Government about the support package.
“The Government acts as one unit. There was a need for a balanced package. There is no division in Government – there are debates.” - Additional reporting from Vivienne Clarke
