TD Ken O'Flynn calls for immediate cost-of-living action following damning Eurostat figures

"No more excuses. Households need relief now – not in 2026." – Ken O’Flynn TD

Independent Ireland Chair and TD for Cork North Central, Ken O'Flynn has said the latest Eurostat findings confirm what families across the country already know: the cost of living in Ireland is out of control and the Government’s limited plans to address it are too little, too late.

According to the Eurostat report, Ireland remains among the most expensive countries in the European Union for everyday essentials, with the cost of food, fuel, energy, and services well above the EU average. While zero VAT applies to some basic groceries, many of the food items people actually buy — including prepared meals, takeaway food and bakery goods — are still subject to VAT rates of 13.5 per cent or more.

O’Flynn said the Government’s planned VAT cut for the hospitality sector in 2026 is “far too limited given the depth and duration of the cost of living crisis”.

“We are calling for the immediate extension of the 9 per cent VAT rate to include processed food and takeaway essentials now — not in 2026,” he said. “This should cover items such as ready meals and bakery products, which are staples for many working families and older people living alone.”

Deputy O’Flynn said it was “ironic that while supermarkets have their loyalty schemes, the Government's loyalty appears to be focused on preserving a concept of the market that permits consumers to be penalised through vague and exploitative pricing structures. We do not believe this is a policy ordinary households must pay to protect.”

"The government should be implementing a temporary 9 per cent VAT rate on household energy bills, including electricity, gas and home heating, to be targeted specifically at low-income families and vulnerable households through the social welfare system.

“This is about fairness. A reduced VAT rate already applies to heat pump installations — why should people freezing in their homes today not get the same consideration? Every day I am speaking to people who are struggling to put food on the table and keep the lights on - that is a disgraceful situation in a country that has a surplus of billions in it's annual budgets” Deputy O’Flynn said.

In addition, Independent Ireland is calling on the Government to introduce a national "Fair Pricing Charter", compelling supermarkets, energy companies and other essential service providers to publish their gross and net profit margins quarterly, and provide independent justification for any price increases above the inflation rate.

“We know businesses must be profitable — but profit does not mean immunity from scrutiny,” Deputy O’Flynn said. “We are calling for a properly empowered consumer watchdog to investigate excessive profiteering and impose real penalties where warranted.”

Longer-term measures advocated by Independent Ireland include ring-fencing revenue from windfall energy taxes to support direct cost-of-living payments, expanding community-led regional food hubs to reduce import dependency, and enhancing support for low-income households and pensioners through targeted fuel allowances and energy credits.

“Enough is enough,” Deputy O’Flynn said. “With real political determination, we can blunt the impact of food and energy inflation that has become completely unsustainable. We need to build a fairer economy. We will hold this government to account. No more delays, no more excuses. We need action — and we need it now.”