Summary of government measures to support families against inflation

The government announced on Monday evening a package of measures to support family incomes with a view to mitigating the effects of inflation and increased energy costs, amounting to €2.4 billion.

The measures include the areas of income, children and young people, pensioners, electricity, gas and fuel, rents and transport.

Here are the main measures announced by the prime minister, António Costa:

•  Reduction of VAT on electricity supply from the current 13% to 6%, a measure in force until December 2023;
• Extending until the end of the year the suspension of the increase in the carbon tax, the return to citizens of the additional VAT revenue and the reduction in the ISP tax on oil products.
• Allocation of an extraordinary payment of €125 to each citizen not receiving a pension with an income of up to €2,700 per month;
• Allocation to all families, regardless of income, of an extraordinary payment of €50 for each dependent child up to 24 years of age;
• Payment to pensioners of 14 and a half months of pensions, instead of the usual 14 months, with the extra half pension being paid in October;
• Pension increases in 2023 of 4.43% for pensions up to 886 euros, 4.07% for pensions between €886 and €2,659; and 3.53% for other pensions subject to update;
• Price freeze on public transport passes and CP rail tickets during the whole year of 2023;
• Limiting the maximum updating of housing and commercial rents to 2% in 2023;
• Creation of an extraordinary support to renting, through the attribution of a tax benefit to landlords on income from property in terms of IRS (income tax) or IRC (corporation tax).