Excise Cuts extension is no substitute for real cost-of-living and climate plan
Excise Cuts extension is no substitute for real cost-of-living and climate plan - The Labour Party
Labour Party Leader Ivana Bacik TD has said the Government’s decision to extend excise duty cuts on petrol and diesel does not amount to a serious cost-of-living or climate action strategy, as the Dáil was recalled today to approve the extension.
Deputy Bacik said Budget 2027 must instead deliver targeted energy supports, index PAYE tax bands and credits, cut childcare costs and invest in the green transition and public services that would help to reduce household bills in a more sustainable manner.
Deputy Bacik said:
“Working people are being squeezed from every direction. They are paying high rents, high childcare fees, rising grocery and energy bills, while many have little choice but to drive because reliable public transport simply is not available to them.
“That is why we understand the decision to delay the restoration of excise duty. But extending these cuts again cannot make up for this Government’s failure to develop a fairer and more targeted response to the cost-of-living crisis or indeed the climate crisis.
“The Parliamentary Budget Office and the ESRI have previously shown the limitations of untargeted excise reductions as a way of supporting households. Low-income families spend a greater share of their income on energy and fuel, yet receive the same excise reduction as households on much higher incomes.
“More than half a million households are already in arrears on their electricity and gas bills, with further energy price increases looming. Yet we still have no plan for a targeted energy credit for households that need it most, nor any plan for sufficiently ambitious supports for retrofitting, home energy upgrades, EVs and solar power.
“Last year, this Government also chose not to index personal tax bands and credits, meaning workers can receive a pay rise and still find themselves losing ground as prices increase.
“Budget 2027 is an opportunity to change course. Labour is calling for PAYE tax bands and credits to be indexed, childcare costs to be capped at €200 a month, targeted energy supports for struggling households and serious investment in climate measures, in housing and sustainable public and active transport.
“Government has the resources to act. It must now use those resources to build an active State that lowers the everyday cost of living rather than relying on temporary fixes. Working families deserve real breathing room. Budget 2027 must deliver it.”