Further cost of living measures announced

Rising prices have been hitting hard in recent months.

The Government has announced further measures in a bid to cut pressure on householders.

Under the plan agreed by Ministers today, VAT on gas and electricity prices will from 13.4% to 9% until the end of October. The recent cuts in excise duty on petrol and diesel will be extended until budget day.

People on fuel allowance will receive a €100 lump sum payment. This will be paid to the 370,000 recipients of the allowance.

The VAT cut on gas and electricity is expected to cost in the region of €46 million but will mean a cut of €50 on gas bills and €70 on electricity.

There has been criticism of the Government’s decision to press ahead with the planned increase in carbon taxes set to come into place on May 1.

A statement from Government following this morning’s cabinet meeting says today’s measures “will more than offset the increase in carbon tax”.