SINN Féin Senator Paul Gavan has called on the government to take urgent action to tackle the spiralling cost of living.
This week, the Central Statistics Office has found that prices have risen by more than five per cent in the past year, reducing the spending power of households and their living standards.
Calling on the government to cut the rate of VAT on energy charges, the Limerick-based Senator explained: “The government had a chance to support workers and families in Budget 2022 but blew it – for example, core social welfare rates have failed to keep pace with price rises and no action was taken to reduce rents. In fact, rents are increasing across the State.”
“Energy prices have risen by 25 per cent, while the cost of home heating oil has soared by a staggering 71 per cent. This is on top of an eight per cent hike in rents across the city. More than a third of households use home heating oil as their main home heating fuel. Instead of giving a helping hand to households, they have increased prices further with Carbon Tax hikes.”
“Currently, there is a 13.5 percent VAT charge on already high energy prices, on top of Carbon Tax and the PSO levy.”
Senator Gavan concluded “I am urging the government to stretch every sinew to remove VAT on domestic energy bills for low and middle-income households this winter. This would help to dramatically reduce the cost of heating and lighting homes in the months ahead and giving households a helping hand.”
