The Taoiseach Micheál Martin has been said there are currently no plans to introduce extra measures to tackle the cost of living prior to this year’s budget.
Speaking on the abolition of Universal Social Charge, a tax on income of more than €13,000 a year, Martin added, “It will not be abolished, and we have to be honest with people.”
His comments came days after the Government announced a €290 million package of measures designed to mitigate the cost of living.
That package, which has been described as insufficient by opposition parties, includes a rebate on household energy bills increasing to €200, including VAT. Public transport fares are set to be cut by 20% from April for the rest of the year. People already in receipt of the fuel allowance will also receive an additional payment of €125.
Martin said: “In a package like this, it was never going to alleviate the entire situation for people.”
He defended the extent of the package, warning of the dangers of “chasing” inflation.
Those eligible for the drug payment scheme, which puts a cap on the maximum a family can spend on medicines a month, will see the limit cut from 100 euro to 80 euro.
The working family payment increase announced in the Budget will also be brought forward from June to April.
The Government also reduced caps on the fees for multiple children on school transport to €500 per family for post-primary schools, and 150 euro for primary school children.
“What we’ve endeavored to do is, as best we can, give some alleviation to as many people as possible by doing initiatives that align with government policy as well,” the Taoiseach said.
Asked on TodayFM what more might be done in the Budget in October, Martin said: “There won’t be any further interventions until the next Budget. We do need to take it a step at a time.”
Mr. Martin said that the “jury is out” about how long this cycle of inflation will last and said it was too soon to be discussing what might be contained in the Budget later this year.
It was suggested to Martin that abolishing the USC would benefit everyone.
“It will not be abolished and we have to be honest with people,” he said. “All the time there are increasing demands on public expenditure. The last two years have seen an unprecedented intervention by the Government, by the State, in the economy, underpinning wages, underpinning employers.”
News credit: The Journal