When every Irish homeowner will get €100 off electricity bill in Govt bid to tackle rising energy costs

EVERY Irish homeowner will get €100 off their electricity bill in the new year, it has been revealed.

The significant state intervention will cost up to €170m in an effort to tackle the energy cost crisis.

The once off bill deduction will cover the first two months of the year and will be taken from domestic household bills in March.

Funding for the energy initiative will come out of Minister Eamon Ryan’s departmental budget.

Minister Ryan is preparing a memo to bring to Cabinet early next week, as legislation is expected to be required.

It comes as latest CSO figures revealed the annual rate of inflation hit a 20 year high last month.

Consumer prices jumped up 5.3 per cent last month, boiling down to jumps in energy, transport and rental costs.

Speaking on Newstalk Breakfast, Minister for Finance Pascal Donohoe believes inflationary pressures will improve next year.

He said: "It's the very reason why we've increased the amount of income that people pay the standard rate of income tax on to help deal with these challenges. 

"It's the reason why we've increased the living alone allowance, the fuel allowance, the qualified child payment to help those who are affected by this."

TARGETED MEASURES

Minister Donohoe said that the €100 reduction on each household's bill is not a measure targeted at those who need it most, but said the Government has already made targeted changes in social welfare and personal taxation.

He explained: “As with many things at the moment, including the decision I made on Covid supports yesterday, if you are trying to act quickly it is not always possible to be as targeted as you might be if you had more time.

“We are aware as always that if we do make a decision in relation to how we can help further with the price of energy we will try to do it in a way that is targeted but at the same time I know these bills are going up."