Social Democrats TD Cian O’Callaghan has said that the government’s much-touted energy support package is a “disaster” that offers little to low-income households or workers.
Leaked to the press on Monday evening ahead of Tuesday’s cabinet meeting, excise duty on diesel will be cut by 20 cent and by 15 cent on petrol until the end of May.
Minister for Public Expenditure Jack Chambers got ahead of the media scrum on Sunday, telling people that the measures will only be a limited time affair.
Per O’Callaghan, the Soc Dems finance spokesperson, the supports go nowhere near far enough.
“There is almost nothing in this package for those low-income households who are reliant on home heating oil – and unable to pay the 80 percent spike in prices,” O’Callaghan said on Tuesday morning.
“The government seems to think that they don’t have to assist those people because we are now in March – but people must still heat their homes in spring and there are vulnerable people, all over the country, who cannot now afford to turn the heating on.”
“While a cut to excise duty, to provide relief at the pumps, is welcome, there is so much more the government should be doing to target supports at those who are struggling the most,” the Dublin Bay North TD said.
He pointed to the extension of the fuel allowance for another four weeks as something that does not go far enough, or reach sufficient numbers of people.
He noted that the extension amounts to an increased income of €152, which, “while welcome, will not bridge the affordability gap that so many are enduring,” he said.
“For months now, the Social Democrats have been asking the government to introduce a targeted €400 energy credit for the 800,000 households who are struggling most, based on household income. This measure has been fully costed, at €362 million, and would provide real support to people who need it most,” he said.
O’Callaghan has been a vocal critic of the government’s economic policies in the cost of living crisis, which has remained stubbornly persistent since arriving on Irish shores in late 2021.
“Even before this latest crisis erupted, 320,000 households were in arrears on their energy bills. That is hundreds and thousands of people all over the country who simply can’t meet soaring energy prices,” he said.
“Over the coming months, the situation is likely to get even worse. There have already been forecasts that inflation could rise to 4 percent and the price of groceries could soar by €700 a year.
The Social Democrats TD said, “this is a disaster for people who were already struggling to keep their heads above water and is why the government should be putting in place plans now to target supports to those who need it most.”
“The Government consistently say that they support targeted measures – but the vast majority of this package is universal in nature; I am appealing to the government to adopt our proposal for a targeted energy credit so a meaningful level of support can reach those who need it most quickly,” he said.