Taoiseach denies €100 off electricity bills is a 'gimmick'

However, Social Justice Ireland (SJI) claimed the move was largely symbolic, as hard-pressed households were not only contending with rising electricity prices, but also growing cost of living expenses all round.

SJI research and policy analyst Michelle Murphy told the Irish Examiner that a new Oireachtas report by the parliamentary budget office (PBO) was evidence that welfare increases have not followed inflation consistently in the past decade.

“Indexation of welfare rates to inflation, even if adopted, may not be adequate at present to maintain living standards for all,” the PBO report stated.

Ms Murphy said that the report offered evidence of the need for the introduction of a universal basic income in Ireland.

"€100 on an electricity bill is a gimmick when you consider a year of price increases with no corresponding increases in welfare,” she said. 

For those in arrears, €100 means next to nothing.

“The PBO report is devastating, because it shows the Oireachtas’ own evidence that there is a problem. 

"The likes of SJI don’t criticise for the sake of it, this is its own agency reporting this.” 

The Taoiseach insisted the Government was very conscious of rising bills, and that the €100 was “a bit more help” to hard-pressed families.

“We’ve already taken measures in the budget," he said. 

We are very conscious that we are going into a period of significant inflation in energy prices — not just in Ireland, but globally.

“We just wanted to do a little bit more to help people meet their electricity bills over the coming period, on top of measures that we took in the budget, which were more focused on the fuel allowance — increasing the eligibility of it, and increasing the amount of it, and also the tax relief in the budget was designed to give a bit more help to people."

SJI’s National Social Monitor — Ireland Social Scoreboard, published today, said the high cost of accommodation as a proportion of people’s income is worsening when coupled with arrears on a mortgage, rent, and utility bills.

Susanne Rogers, also a research and policy analyst at SJI, said that housing costs are the main items of expenditure for many European households, Ireland being no exception.

High bills leading to food shortages

She said that bills such as electricity and gas are becoming so high that it is leading to shortages of food on the table for hard-pressed families, as well as contending with rocketing fuel costs for transport. 

Since October 2020, electricity prices have risen by as much as 70% with certain providers. 

When added to increases in gas prices, some houses could be facing an additional €1,000 in electricity and gas bills next year.

The bleak picture was echoed by the Money Advice and Budgeting Service (MABS), which claimed that Christmas would lead to thousands of more families entering 2022 in debt.

MABS spokesman Michael Laffey said: "In financial terms, things are certainly tougher for people than they were a year ago. 

"Last year at this time, many people's financial circumstances were better, for example not having any childcare, school runs, or commuting costs."

Since then, all these things have returned, and while the cost of diesel and fuel has risen, along with utility bills, people's wages haven't gone up.

“The moratoriums that had been in place for utility disconnections came to an end in mid-year, which left a lot of householders struggling with arrears. 

"They're back in place this month up to January next year, as they are every Christmas, but once they go, many people will find themselves in more financial difficulties once again.”