Reduced bonus child benefit payment to form part of slimmed-down cost-of-living package

A reduced bonus of €100 per child on top of child benefit will be paid as part of ongoing cost-of-living measures to be signed off by Cabinet on Tuesday.

There will be €200 paid to welfare recipients such as pensioners, carers, lone parents, disabled people and others as a once-off bonus as a further €1.25 billion in cost-of-living supports are to be approved following crunch talks between senior Ministers and Coalition leaders on Monday.

Minister for Social Protection Heather Humphreys also secured €100 on top of the back to school allowance, with the social protection element of support worth a total of around €400m.

There was no additional €200 electricity credit agreed, but excise cuts to petrol and diesel will be phased out rather than go off a cliff edge at the end of this month, amid fears of panic buying.

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Petrol will go up by 6c on 1st June, 7c on 1st September and 8c on 31st October. Diesel will go up by 2c per litre on 1st March, 5c on 1st June and again on 1st September, and 6c on 31st October.

The 9 per cent VAT rate for hospitality will be extended to the end of August - with sources insisting this was the final extention, following a proposal by Minister for Finance Michael McGrath.

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The Temporary Business Energy Support Scheme will be altered, with a new upper limit of €15,000 per month or €45,000 for businesses with multiple presences. Rural businesses who are fuelled by heating oil or bulked natural gas will also be able to apply following lobbying from the sector.

Ministers were considering lowering the point at which elevated bills make a business eligible for the scheme. Currently, a firm has to have seen a 50 per cent increase in the unit cost of electricity when compared to 2021 prices.

Ministers agreed to a proposal from Mr McGrath that an increase of 30 per cent be established as a new level for entry into the scheme. Minister for Enterprise Simon Coveney had sought at least 40 per cent.

There will be assistance totalling some €61 million for parents targeted at school transport fees and exam fees in a widening of the package beyond core social protection. Ms Humphreys also secured agreement to expand the hot school meals programme in primary schools.

A Government spokesman said after the meeting that the Coalition is “acutely aware of the impact high prices are having on families, businesses and the most vulnerable”. He said the package will prevent a cliff edge and ensure there are sufficient resources for the next budget.