Government does not have “serious” cost of living strategy, says Bacik

Labour leader Ivana Bacik has said the government’s decision to extend excise duty cuts on petrol and diesel does not amount to a serious cost-of-living or climate action strategy.

The Dublin Bay South TD said that October’s Budget must instead deliver targeted energy supports, index PAYE tax bands and credits, cut childcare costs and invest in the green transition and public services.

Bacik said that “working people are being squeezed from every direction. They are paying high rents, high childcare fees, rising grocery and energy bills, while many have little choice but to drive because reliable public transport simply is not available to them.”

“That is why we understand the decision to delay the restoration of excise duty. But extending these cuts again cannot make up for this government’s failure to develop a fairer and more targeted response to the cost-of-living crisis or indeed the climate crisis,” she said.

“The Parliamentary Budget Office and the ESRI have previously shown the limitations of untargeted excise reductions as a way of supporting households. Low-income families spend a greater share of their income on energy and fuel, yet receive the same excise reduction as households on much higher incomes,” Bacik noted.

Bacik repeated the unwanted stat that is hanging over the government parties like a millstone –  more than half a million households are already in arrears on their electricity and gas bills, with further energy price increases looming.

“Yet we still have no plan for a targeted energy credit for households that need it most, nor any plan for sufficiently ambitious supports for retrofitting, home energy upgrades, EVs and solar power,” she said.

“Last year, this government also chose not to index personal tax bands and credits, meaning workers can receive a pay rise and still find themselves losing ground as prices increase,” Bacik noted.

“Budget 2027 is an opportunity to change course. Labour is calling for PAYE tax bands and credits to be indexed, childcare costs to be capped at €200 a month, targeted energy supports for struggling households and serious investment in climate measures, in housing and sustainable public and active transport.”

The Labour leader said, “the government has the resources to act. It must now use those resources to build an active state that lowers the everyday cost of living rather than relying on temporary fixes. Working families deserve real breathing room. Budget 2027 must deliver it.”