BUILDING A BETTER FUTURE

PART 1. COST OF LIVING 2024 PACKAGE

THE COST-LIVING-CRISIS IS NOT OVER

In recent years the government failed to protect people from the cost of living crisis and as a result people are worse off. Workers are worse off in real terms than when this government came to power. Pensioners, carers, people with disabilities are all worse off today than 4 years ago.

Wages and social supports have not kept pace with inflation. House prices, rents, childcare, food, and energy bills are leaving workers and families struggling to get by.

This impacts the wider economy as people cut back on other goods and services. When people have no money in their pockets the local economy struggles.

Sinn Féin would act to protect households and the economy from the cost-of-living crisis. Below are the measures we would implement this year. We would follow this with more substantial reform measures in 2025.

€450 ELECTRICITY CREDITS

Households continue to struggle under the weight of high energy bills. Electricity prices in July 2024 were 47 percent higher than three years ago in July 2021, while gas prices in July 2024 were 84 percent higher than three years ago in July 2021, with Irish electricity prices remaining among the highest in the European Union.

Government refused to apply a windfall tax on electricity companies allowing them to keep record profits at the expense of workers and families. The government sided with protecting corporate profits over public finances.

Figures released to Sinn Féin showed that over 230,000 households were in arrears on their electricity bills at the end of April, a more than 20,000 increase on the same period in 2023.

Sinn Féin would support households with a €450 electricity credit this autumn and winter. This measure would cost approximately €900 million.

CHILD BENEFIT DOUBLE PAYMENTS

230,000 children are currently experiencing material deprivation: an increase of almost 30,000 since 2022. The rise comes amidst a 3% real decline in the average disposable income of households with children. Fianna Fáil and Fine Gael have failed families and children.

Sinn Féin would support households with a Double Child Benefit Payment in October and December. These measures would cost approximately €362.6 million – €181.3 million for each double payment.

ABOLISH THE TV LICENSE

We propose to abolish the outdated and regressive TV licence fee with immediate effect and put in place a new public funding model for RTÉ and other public service media based on direct Exchequer funding. Over two years ago the Future of Media Commission recommended abolishing the TV license. The government have decided to retain the TV license fee and focus their efforts on forcing people to pay it. This measure would cost €45 million in 2024 with a full-year cost of €182.5 million.

EXTEND REDUCED VAT RATE FOR ELECTRICITY AND GAS

As households continue to struggle with the high electricity and gas bills, Sinn Féin would extend the reduced rate of VAT on household energy bills. This measure will cost €63 million for the months of November and December.

REVERSE EXCISE DUTY INCREASE FOR PETROL AND DIESEL

In August the government punished motorists with a tax hike on petrol and diesel as the cost-of-living crisis continues. The government’s punishing tax hikes will make Irish motorists the most taxed in the EU. Instead of easing the burden on hard-pressed households, the government is determined to increase costs. Sinn Féin would reverse this tax hike at a cost of €45.5 million in 2024.

DO NOT PROCEED WITH CARBON TAX INCREASE IN OCTOBER

The government plan to increase the carbon tax on motor fuels in October, a move that would further hike petrol and diesel prices. This hike must not proceed. We would scrap the planned increase in the carbon tax this October, at a cost of €12 million in 2024.

€500 DISABILITY & CARERS LUMP SUM PAYMENT

We would provide a lump sum payment worth €500 to people with disabilities, cognisant of the additional costs faced by those with disabilities over and above the general impact of the cost-of-living crisis.

People with disabilities experience a much higher risk of poverty and deprivation. The extra costs of having a disability are significant and are a key factor perpetuating poverty among people with disabilities.

We would also provide a €500 lump sum payment to those in receipt of the Carers Support Grant and Domiciliary Care Allowance. Caring households face various financial barriers and additional costs, whether that be foregone employment/income or costs borne by caring households due to a lack of what should be publicly provided services and support.

This would cost €172.5 million.

€200 LIVING ALONE LUMP SUM PAYMENT

We would provide a lump sum payment worth €200 to people living alone (in receipt of Living Alone Allowance).

People who are living alone are among the households at the highest risk of poverty and with the lowest income. People living alone may be less able to afford higher energy and other increasing day-to-day costs as a result. We would therefore provide a lump sum payment to those living alone to mitigate the financial difficulties this winter. This would cost €47 million.

€300 FUEL ALLOWANCE LUMP SUM PAYMENT

We would provide a lump sum payment worth €300 to Fuel Allowance recipients. Household energy bills remain considerably higher than pre-energy crisis levels. For lower income households, sky-high energy prices have a particularly adverse impact, leaving many to choose between heat or other essentials.

We would therefore provide a €300 lump sum payment to those on fuel allowance to ease the financial burden of winter energy bills. This would cost €117.6 million.

€400 WORKING FAMILY LUMP SUM PAYMENT

We would provide a lump sum payment worth €400 to working families (working family payment recipients).

Working families are understandably concerned about the winter ahead given the cost-of-living crisis and its disproportionate effect on low-income households.

We would provide a lump sum payment to help working families with bills this winter. This would cost €18.4 million.

€100 QUALIFIED CHILD INCREMENT LUMP SUM PAYMENT

The cost of raising a child is skyrocketing but the Government has ignored that and left many families at risk of poverty. We would provide a payment of €100 to people who get an increase for a qualified child – you will get one payment per qualified child. This would cost €31.2 million.

FOSTER CARER ALLOWANCE DOUBLE PAYMENT

We would provide a Foster Carer Allowance Double Payment, in recognition of the work done by foster carers and the additional costs incurred by foster parents as a result of the cost of living crisis. This would cost €2 million.

CHRISTMAS BONUS

We would provide a double payment of the normal weekly rate to social welfare and pension recipients. This will help alleviate the financial hardship faced by households coming into winter and Christmas. This would cost €350 million.