Inflation wipes out any budget gains – Nash
Inflation wipes out any budget gains - Nash - The Labour Party
- Failure to introduce energy credits while electricity costs soar by 8% in the last year beggars belief
Labour finance spokesperson Ged Nash TD has accused Government of abandoning workers and families in Budget 2027 following the release of CSO Consumer Price Index figures today.
Deputy Nash said:
“The epic fail on energy credits will in time be the story of this Budget, up there with the failure to adjust tax for PAYE workers in October 2025. November’s Finance Bill needs to see a windfall tax on power firms to pay for help for households.
“Government failed to meet working people where they are in Budget 2027. On energy and incomes, Budget 2027 has failed to come close to the real measures needed to even pretend to protect people from rising prices.
“CSO figures published today showed that the rate of inflation in the areas of housing, water, electricity ams other fuels has risen an extraordinary 9.5%. Ireland already has the highest electricity prices in Europe, yet no measures are being taken to support and protect the people who can barely afford to turn the radiators on this weekend as the cold hits.
“The Labour Party has warned Government about the real measures that would be needed to protect families this winter. Since May, we have called for energy credits for homes that face the galling vista of choosing between heating and eating this winter.
“Already, 500,000 energy bills are in arrears. At the same time, energy companies are reaping enormous profits. Yet, Government failed to slap a windfall tax on these profits to protect bill payers, funds that could have been used for targeted energy credits to protect those who are struggling.
“Any tokenistic changes to income tax will be immediately washed away by this rate of inflation. For a Tanaiste who told us Budget 2027 would be a “workers budget”, yet it’s clear now that this was a Budget for those who already have a few bob in the bank, who can afford to save and where their money is burning a hole in their pockets.
“Meanwhile we have Minister Jack Chambers who is failing to even engage in talks with unions. Workers know Government has dragged its feet on existing pay awards and allowed the last agreement to expire without a successor. We need to see action now from Government, including a commitment to introducing energy credits to protect people against the rate of inflation.”