Further financial measures to help people with soaring household bills could be brought in before the Budget, the Government is considering.
Cabinet sources have said they will monitor the situation between now and October and will move if the cost of living crisis deteriorates further.
Tanáiste Leo Varadkar has said “nothing is planned” but also did not rule out bringing in more measures before October.
He indicated tax cuts and increases in social welfare and a pension hike will form part of the measures in the forthcoming Budget.
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He said: “I’m not ruling out doing things in the interim, but certainly at this stage what we are working towards is another package of measures to help people with the cost of living and that will be on Budget Day, which is just over three months away.”
It comes as a new report by the State’s economic think-tank, the ESRI, found how almost three in 10 of Irish households are in energy poverty.
Mr Varadkar said: “I think the report is very stark.
“As it stands, we will do more.
“But that will come on Budget day in about three and a half months' time.
“I'm not ruling out doing things in the interim, but certainly at this stage, we're working towards another package of measures to help people with the cost of living and that will be Budget Day which is just over three months away.
“We accept that we need to take further action to help people with the cost of living and the budget is three and a bit months away.
“We're working towards that. Looking into different options, seeing what we might be able to introduce more quickly rather than waiting for January, February, March.
“See what we can do in October, in November, in December for Christmas in relation to the cost of living.”
Mr Varadkar ruled out abolishing motor tax to help commuters who are facing increased fuel costs at the petrol pumps but said people will see cuts in childcare and public transport.
It’s understood the Government is looking at more “cash payments” rather than further cuts to excise duty on fuel.
One Cabinet source said this could include measures such as ones already introduced like the €200 energy credit and €100 fuel allowance cash payment which are deemed as “more effective.”
One Cabinet source said: “There will be a move if the situation deteriorates between now and Budget day but we will wait and see what happens.
“This isn’t just an issue that’s affecting Ireland, we’re not an outlier in this.
“There are constant discussions on what could happen between now and October regarding helping people but there will be no major financial assistance given €2.5 billion has been spent already.”
A second Cabinet source said slashing the cost of childcare will be the main feature of the Budget.
They said: “This won't take effect until sometime next year but it will be a permanent measure which no doubt will be welcomed by young families who have a lot of bills.
“We could increase the universal subsidy substantially to reduce the cost substantially.”
