Govt may have to provide further measures to ease cost of living crisis - finance minister

The Government may have to add further measures to help households cope with the cost of living, Minister for Finance Michael McGrath admitted this week.

Minister McGrath said he expects that any announcements about potential changes will be made in the next two weeks.

Speaking on RTÉ's Today with Claire Byrne, Minister McGrath said while the economy is in good health, the Government will make judgement calls on what steps it should take next.

The Minister added that the Government needs to be flexible and agile in its response. He added that the Government is in a position where it can make interventions.

Already, a number of cost of living crisis measures have been introduced including a reduction in the excise on petrol and diesel, a cut the VAT on gas and electricity bills, and an energy credit for households.

Minister McGrath noted that while the energy credit was a help, he admitted it "did not go all the way" for many households.

However, there are no plans to introduce mortgage interest relief despite five interest rate increases in recent moths and another one expected from the ECB on Thursday.

Minister McGrath said they would keep the situation under review. 

"I am conscious that we are coming off the back of 10 to 11 years of historically low interest rates. The changes since July have been rapid, and do represent a big shock to the household finances for hundreds of thousands of homes all over Ireland. I acknowledge that point," Minister McGrath said.