Cuts to Vat rate on electricity and gas to be extended for six months
The Vat rate on electricity and gas was initially cut by the previous government in 2022 as part of a cost of living package, but has remained in place since. File Picture: Stuart Boulton/Stock
The Government is to extend cost of living cuts to Vat rates on electricity and gas for another six months.
Finance minister Paschal Donohoe is due to seek Cabinet approval on Tuesday to extend the 9% Vat rate on both. Mr Donohoe will bring forward a financial resolution to the Dáil on Wednesday to extend the cut. This extension will be until October 31.
It is understood that any more extensions of the Vat cut will be made as part of October’s budget.
The rate was initially cut by the previous government in 2022 as part of a cost of living package, but has remained in place since. It had been due to expire on May 1 and return to 13.5%.
Mr Donohoe will also introduce changes to how the local property tax is charged, with it due to prevent 70% of properties increasing into a higher tax band.
It is expected that 97% of properties will remain in their current band, while 3% will increase by one band.
Meanwhile, justice minister Jim O’Callaghan is to seek Cabinet approval to progress with Valerie’s Law — which would see guardianship rights removed from anyone convicted of killing their partner or parent of their child.
The proposed law means that any person convicted of the murder or manslaughter of their child’s other parent would no longer have a legal right to be their guardian.
Under the legislation, it will allow an application to be brought to the District Court to remove guardianship rights from the perpetrator. This application should be sought within six months, with the court then ordering a guardian to be appointed for the child.
It is understood that Mr O’Callaghan believes that guardianship of a child in either a domestic violence or coercive control matter should not be regarded as a private civil law matter between families — but should be seen as a child protection and welfare issue.
Children’s Minister Norma Foley will bring a memo to Cabinet to let the State Claims Agency handle claims that are related to the Office of the Director of Authorised Intervention in Tuam.
This change is a standard practice for recently established State agencies, due to the State Claims Agency providing better value for money.
The office itself was established in 2022 to recover, to identify where possible, and to re-bury the children who were buried at the site of the former mother and baby home in Tuam, Co Galway.
The office has also been engaging with families and survivors ahead of the excavation works.
In addition, housing minister James Browne is due to confirm to Cabinet that the ongoing waiver for development contributions and water connection charges will not be extended further.
The waiver was introduced in 2023, with the caveat that all projects are completed by the end of 2026.
