Irish government to spend €500m tackling cost of living

Paschal Donohoe (pictured) announced the measures with colleague Public Expenditure Minister Michael McGrath

The Irish government has announced more than €500m (£421m) to tackle the rising cost of living.

The coalition government had already pledged to give €100 (£84) credit to pay towards electricity bills regardless of income.

On Thursday night, ministers agreed to double the energy credit and cut public transport fares by 20% from April till the end of the year.

But the opposition parties have said the measures do not go far enough.

Finance Minister Paschal Donohoe and Public Expenditure Minister Michael McGrath unveiled the package on Thursday.

It includes measures to help those in fuel poverty and who may be struggling with bills, including medical ones.

The announcement comes at a time of rising inflation around the world as countries emerge from Covid-19 lockdowns, with the European Commission predicting an Irish inflation rate of 4.6% this year.

Before the official announcement Tánaiste (deputy prime minister) Leo Varadkar told the Dáil (lower house of parliament) that the announcement was in addition to €1b (£843m) in measures announced in the recent budget.

He described the amounts involved as "considerable".

But the announcement has been criticised by opposition parties.

Sinn Féin's finance spokesman Pearse Doherty said the measures "only scratched the surface", while Labour described the measure as "tokens".

The cost of living has now joined housing and health as the dominant issues in current Irish political debate.