The Tánaiste has said he will “not rule out” the return of energy credits this winter, amid calls for a ‘mini-budget’ to tackle the fuel crisis. 

The Government has rejected Sinn Féin’s calls for an immediate package of measures to help reduce the cost of living for those who are struggling. 

Mary Lou McDonald urged Ministers to introduce a €500 USC cut worth, energy credits and further payments for the vulnerable. 

On The Claire Byrne Show, Simon Harris said that “none of this is easy”, but argued the Government’s cut in excise duty and support scheme for industries would lessen the impact of inflation. 

He also hinted that the return of energy credits is under consideration. 

“If the energy crisis is continuing into the winter, it's going to be vastly more difficult for people than it is in the summer,” he explained. 

“Today is a bright, sunny day as I came in here; it's a very different scenario for people trying to heat their homes in the winter and Government can't rule out any further interventions. 

“But that shouldn't be the only conversation.” 

Simon Harris and Micheál Martin at a press conference. Picture by: Sasko Lazarov / © RollingNews.ie

However, the Fine Gael leader did promise tax cuts would be included in Budget 2027, which is likely to take place in October. 

“We cannot approach a cost of living crisis by thinking the only answer is social welfare subsidisation,” he continued.  

“One of the things you can do during a cost of living crisis, one of the things you can do anyway to help make sure work pays is to allow people to keep a little bit of their own money.

“So, there will be an income tax package; the composition of it, what you do with USC, thresholds, rates, tax credits - they're all a matter for proper, detailed discussion across Government.”

Simon Harris and Micheál Martin Picture by: Leah Farrell / RollingNews.ie.

Minister Harris described the nation’s finances as in a “position of relative strength” in comparison to other European countries and promised Ireland would “pull through this as a country”. 

“We are going to be able to help keep our economy secure, we're going to be able to assist people, we're going to be able to do more in the budget,” he added. 

“We are going to be able to look at how we can help people with tax, we're going to be able to look at how we can help through public sector pay talks too. 

“But what we can't do, what we can't do is every single week make another intervention.” 

In the long-term, Minister Harris said Irish society needs to reduce its reliance on fossil fuel imports. 

“The bigger conversation that politicians need to have is how do we get off this horrific cycle of being so dependent on fossil fuels from abroad?” he said. 

“That means we're at the mercy of people who are making decisions thousands upon thousands of kilometers from here - there's an economic security issue here as well.”

Main image: Simon Harris. Picture by: PA Wire/PA Images.