Dáil Éireann Debate, Tuesday - 10 February 2026
421. Deputy William Aird asked the Tánaiste and Minister for Finance how fiscal policy will move beyond once-off supports to permanently reduce cost-of-living pressures for low and middle-income households; and if he will make a statement on the matter. [10107/26]
View answerGovernment has provided significant fiscal support to households and businesses over the last four years to help absorb the worst impact of rising prices. Previous Budgets had incorporated sizable once-off packages comprised of temporary measures in response to the high levels of inflation. This was a necessary – and economically justified – approach.
However, budgetary policy cannot be conducted on the basis of short-term, temporary measures indefinitely. As inflation has eased, we are moving away from multiple ‘fiscal events’ in a year and towards permanent and sustainable measures, targeted at the most vulnerable.
For example, in Budget 2026, in recognition of still-elevated energy prices, Government extended the reduced rate of gas and electricity for a longer period, providing greater clarity and certainty to households and businesses.
Analysis by my Department indicates that Budget 2026 was progressive: lower income households benefitted the most from the measures introduced, with gains in the bottom two cohorts of 4.9 per cent and 3.8 per cent, respectively.
