PRICES “ARE AT a relatively elevated level”, Taoiseach Micheál Martin acknowledged today during Leaders’ Questions, which was dominated by a debate on the cost-of-living. 

Government ministers have repeatedly ruled out any repeat of one-off cost-of-living measures in October’s budget, with Martin stating today that there has to be a “degree of caution” with spending, given the US tariff threats. 

The Taoiseach also pointed out that inflation has fallen since its peak around the time of the outbreak of war in Ukraine. 

Sinn Féin leader Mary Lou McDonald criticised the Taoiseach, telling him “what you’re entirely missing is the fact that prices have not followed suit, and anybody who goes into a supermarket or a shopper who opens up their bill can tell you that we are in a place where households are still struggling”.

She said told the Taoiseach that the government’s record in the last five months has seen home heating oil prices up by €25, with petrol and diesel prices also gone up in May and again in October.

The government has shown no sensitivity to the realities of struggling households and workers, said McDonald.

“I am simply asking you to please wake up and become aware of the realities of people’s lives. People need these supports,” she said. 

October’s budget

Martin said there would be supports in the Budget dealing with cost-of-living and food inflation. 

“This government did an awful lot. We did more than any other European Government, actually, in terms of cushioning and trying to reduce the impact on people, and we continue to do that.”

In April, the Government decided to extend the VAT reduction to 9% on gas and electricity, he said.

“This measure will save households €70 for gas and €55 for electricity.

“From September onwards, there will be a significant increase in the number of people who qualify for the fuel allowance.

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“And since the first of June, women can receive HRT free of charge. At the beginning of June, the Carers Support Grant increased to €2,000. That’s the highest level ever, and that benefits some 138,000 carers,” said Martin.

McDonald said “people are being fleeced”. 

“For one thing, households in Ireland are paying 30pc more on their electricity bills each year than the EU average. That’s nearly €350 more.

“The ESRI says that it is difficult to explain why electricity prices here are so far above other countries. People are being taken for a ride,” she added. 

The ESRI told an Oireachtas committee today that it is “challenging” to explain why electricity prices in Ireland are a lot higher than other EU countries.