The incoming cut on VAT for electricity and gas will come into effect next week as many Irish households will welcome savings of up to €120.
In line with measures to ease the rising cost of living in Ireland, VAT will be temporarily be cut from 13.5% to 9% from Monday, May 2, until October 31, 2022.
According to experts, these changes will save homeowners up to €50 on gas and €70 on electricity for the year.
READ MORE: VAT on energy bills set to be cut in bid to help Irish households struggling with cost of living
It is understood that the government will decide whether or not to continue at 9% from October 31 as part of Budget 2023.
The planned increase in the carbon tax is also due to go ahead on May 1, and will see the price of home heating oil increase by €20 per filled tank and will see the average monthly gas bill jump by around €1.40.
Finance Minister Paschal Donohoe explained that this move was vital to help the public with the rise in the cost of living here, “but also in particular, to offset the increase in carbon tax.”
Anyone in receipt of the Fuel Allowance in Ireland is also due to receive a €100 once-off payment next month - which equates to three of the weekly €33 payments.
There are over 372,000 households that will benefit from this boost.
Applications remain open for the Fuel Allowance payment for 2022/2023, which will start up again in September.
The Public Service Obligation Levy will be put to zero by October 2022 and will end up saving households an additional €58 each year.
Ministers have also agreed to keep the reduced excise rate on petrol and diesel in place until the next Budget.
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