A PACKAGE OF measures to help with the cost of living will be brought to Cabinet next week.

Environment Minister Eamon Ryan and his officials are finalising measures that will help tackle the rising costs of fuel, energy and food.

The Public Service Obligation (PSO) levy on energy bills is expected to be scrapped as part of Government measures aimed at addressing inflation.

The PSO is charged to all electricity customers in Ireland and all energy suppliers are required to collect this levy from customers through bills. 

The PSO levy is currently €4.30 excluding VAT per month which equates to €58.57 per year inclusive of VAT.

It is expected that mandatory time-of-day-pricing for electricity will be rolled out to encourage people to change their energy use to periods where costs are usually cheaper.

An information campaign is also expected to be rolled out in the coming weeks advising the public on how changes in household behaviour can bring down energy bills.

Government sources have said there is a need to “manage expectations” ahead of next week’s announcement as the measures will not go far enough to cover all the rising costs the public are facing. 

Taoiseach Micheál Martin today warned there is only “uncertainty” for the rest of the year, as the country deals with the soaring cost of living.

He said he fully accepts the enormous pressure inflation is putting on families, and he is “very concerned” about low-income households.

The Fianna Fail leader said that, while unemployment is low and the economy is performing well, the rise in inflation and soaring energy costs are having a negative effect on the public.

Despite pressure from opposition parties, the Government has so far resisted calls to bring in a mini-budget to deal with the financial stress on families.

Martin indicated that the increase in carbon tax, due to take effect from May 1, will not be postponed.

“The only thing from now to the end of the year, as far as I can see, is uncertainty,” he said.

“I wouldn’t understate the economic recovery in Ireland and I fully accept the enormous pressures that inflation is putting on households, and we are very concerned about those on low incomes.

“The unemployment rate is at 5.2%, which is as close to full employment.

“Those are the pluses, but there’s one huge negative at the moment, and it’s inflation.”

The Central Bank revised its forecast for growth in the economy downwards yesterday.

The bank said in its quarterly bulletin that inflation this year could peak at 8%, and is expected to average out at 6.5% for the year.