Taoiseach vows to focus on childcare, pensions and rising family costs in budget

ireland
Taoiseach Vows To Focus On Childcare, Pensions And Rising Family Costs In Budget
Taoiseach Micheál Martin said the budget will focus on the marginalised, those on low incomes and those who will feel the brunt of inflation. Photo: PA Images
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Cate McCurry, PA

Taoiseach Micheál Martin has said the Government will focus on childcare, pensions and rising costs for families as part of the budget.

Mr Martin made the comments as Fianna Fáil members held a special party meeting on Friday to discuss the budget and measures to address the cost-of-living crisis.

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He said the budget will focus on the marginalised, those on low incomes and those who will feel the brunt of inflation.

Describing the party parliamentary meeting as “lengthy and comprehensive”, Mr Martin said more than 100 ideas were mooted in how to address the financial burden on families.

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“Some key areas identified were around childcare, pensions, and also in terms of mitigating costs for families more generally within education,” Mr Martin said.

“The childcare was one that a large number felt we should really do something significant in the budget.

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“That was the request of the members of the parliamentary party, in addition to the housing issue, particularly around existing Central Bank regulatory framework around lending or people borrowing.

“Overall, what we’re looking at is a budget that has to combine pay, tax, and the core expenditure for every department going into the next 12 months, along with a cost-of-living package, part of which would have immediate application or certainly application in this calendar year to take the pressure off people.

“Undoubtedly pressure is on households in Ireland, across Europe, because of the terrible war in Ukraine and the fact that energy has been weaponised, food has been weaponised and migration has been weaponised.

“So we’re in the midst of the worst humanitarian crisis since World War Two and we’ve got to respond and navigate our way through that without undermining the key essentials of the economy.

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“We must develop a package that doesn’t add to that inflation, that does help to alleviate pressures on people.”

He made the comments after the Minister for Public Expenditure, Michael McGrath said it is possible there will be a “modest change” in bringing the budget forward.

Budget 2022
Michael McGrath said the Government is examining whether it is possible to bring forward the date of the budget (Brian Lawless/PA)

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Mr McGrath said the Government is examining whether it is possible to bring forward the date of the Budget and a decision will be made by Cabinet next week.

He said it is being worked through and the process of moving the budget date is “very much under way”.

The budget is normally held on the second Tuesday of October, but it is understood it could be brought forward to the end of September.

“No decision has been made by Government yet to change that date and the issue is under consideration, but I would say this, there is limited scope to change that because the process of putting together a Budget is a lengthy and complex process,” Mr McGrath told RTÉ Radio's Morning Ireland.

“We are working through that at the moment and the process is very much under way.

“So Government will make a final decision and I anticipate that will happen next week.

“We are very conscious of the genuine cost-of-living pressures that people are under and we have said that there will be a need in the autumn for a set of one-off measures to help people in the best way that we can.

“So if it is possible to bring it forward by a short period of time, within the limits, then we are examining that issue at the moment, but no decision has been made, and any change would be modest in nature in terms of date.

 

“I don’t think it will be fair to speculate on any particular date when no decision has been made.

“It is possible that there will be a modest change in terms of bringing it forward. But that’s not definite until Government makes a decision and they expect that will happen next week.”

Mr McGrath said the measures to be announced as part of the budget package will be targeted at those most impacted by the cost-of-living crisis.

He said it will involve one-off measures, adding they will be substantial in scale.

While he refused to give details on some of the proposed budgetary measures, he did not rule out including an electricity grant of €200.

“I would like to just set out three broad priorities. One is those who are genuinely the most vulnerable, they will need the most help at this time,” Mr McGrath said.

“But people who are working, working families will also need help because they too are feeling real pressure at this time.

Personal finance pics
The Government said that budgetary measures will be targeted at those most vulnerable to the cost-of-living crisis (David Jones/PA)

“They will want to see us as a Government move to reduce costs in areas like childcare, transport, health, and to reduce the tax burden that they face as well.

“I think the third key priority is public services. The relationship between the state and the citizen works on the basis that all citizens pay some tax to the Government, even if they’re not working, and in return they expect the state to deliver good services, access to housing, access to healthcare, good disability services, home care services.”

He said the summer economic statement will be brought to Government on Monday, which will set out the resources available for the budget.

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