Latest news with #DaraghCassidy
Irish Independent
14 hours ago
- Business
- Irish Independent
Ireland is most expensive country in EU after Denmark as prices continue to soar
Prices here are 38pc above the EU average – we are behind only Denmark when it comes to high costs. In 2015, prices in Ireland were 28pc above the average, but since then Ireland has been getting increasingly more expensive. The findings, from the statistics agency Eurostat, will put a new focus on the Government's decision not to pay out universal cost-of-living packages in the next budget. Eurostat found that when it comes to alcohol and tobacco, prices here are the most expensive in the EU – more than double the average. Daragh Cassidy, of price comparison site said this is due to taxation and, more recently, minimum unit pricing on alcohol. When it comes to alcohol, prices here are the second-highest in the EU. Finland has the dearest. Food and non-alcoholic drink prices here are the third-highest in the EU at almost 15pc above the EU average. We are behind only Luxembourg and Denmark when it comes to what we pay for food. However, this is an improvement on recent years, as these prices were more than 21pc above average in 2020. Ireland's restaurant and hotel prices are the second-highest in the EU – Denmark's are dearest – at 29pc above the average. Communications costs are almost 40pc above average. Ireland is the third-most-expensive country for electricity, gas and fuel, with prices 17pc above the average. However, clothing prices in Ireland are 1pc below the EU average and cheaper than in Lithuania, Latvia and Poland. Mr Cassidy said Ireland will never be a cheap place to live Non-EU countries Iceland, Norway and Switzerland were also included in the research and generally have prices higher than those in Ireland. Mr Cassidy said we have known for a while that Ireland is an expensive country and these figures from Eurostat confirm that. 'There are several reasons why prices here are so high,' he said. 'These include our higher wages, a lack of competition in certain sectors, high taxation on certain goods such as tobacco, alcohol and fuel, and lower government subsidies in certain areas such as public transport and childcare compared to our European neighbours.' He said businesses are also faced with high insurance and energy costs, which then get passed on to consumers. Mr Cassidy said Ireland will never be a cheap place to live. 'And it's worth noting that many of the world's most expensive countries, such as Switzerland, Iceland and Denmark, also have some of the highest standards of living in the world,' he added. He said wages in Ireland, while high by international standards, generally do not match the salaries in those countries. At the same time, taxpayers in more expensive countries tend to get back more from their governments in terms of better and more affordable healthcare, childcare and public transport, though there have been improvements made here in recent years. Mr Cassidy called for the Government to lower the standard rate of Vat, which at 23pc is one of the highest in the world.
Irish Independent
a day ago
- Business
- Irish Independent
Ireland is the second most expensive country in the EU
They show that Ireland is the second most expensive country in the European Union for typical goods and services. Prices here are 38pc above the EU average. We are only behind Denmark when it comes to high prices. Back in 2015 prices were 28pc above average in this country. But since then Ireland has been slowly climbing the 'league of shame' when it comes to the cost of living. The findings from the European statistics agency, Eurostat, will put a new focus on the Government's determination not to pay out universal cost-of-living packages for households in this year's Budget. Eurostat found that when it comes to alcohol and tobacco, prices in Ireland are the most expensive in the EU. They are more than double EU average. Finance expert Daragh Cassidy of price comparison site said this is due to government taxation, and more recently, minimum unit pricing on alcohol. When it comes to alcohol alone, prices here are the second highest in the EU, after Finland. Our prices are almost 198pc of the EU average, or close to double what people are paying in other European countries. Food and non-alcoholic drink prices in Ireland are the third highest in the EU, despite this country being a huge producer of agricultural produce. ADVERTISEMENT We are only behind Luxembourg and Denmark when it comes to food prices. They are almost 15pc above the EU average. However, this is an improvement on recent years, as prices were over 21pc above average in 2020. Restaurant and hotel prices are the second highest in the EU, behind only Denmark, at 29pc above average. Communications costs are almost 40pc above average. And Ireland is also the third most expensive country for electricity, gas and fuel with prices over 17pc above average. In better news, clothing prices are actually 1pc below the EU average and cheaper than in Lithuania, Latvia and Poland. Non-EU countries Iceland, Norway and Switzerland were also included in the research and generally have prices higher than Ireland's. Mr Cassidy of said we have known for a while that Ireland is an expensive country and these figures from Eurostat confirm it. 'There are several reasons why prices here are so high. 'These include: our higher wages, a lack of competition in certain sectors, high taxation on certain goods such as tobacco, alcohol and fuel, and lower government subsidies in certain areas such as public transport and childcare compared to our European neighbours.' He said businesses are also faced with high insurance and energy costs, which then get passed on to consumers. Mr Cassidy said Ireland will never be a cheap place to live. 'And it's worth noting that many of the world's most expensive countries such as Switzerland, Iceland and Denmark also have some of the highest standards of living in the world.' He said that wages in Ireland, while high by international standards, generally don't match the salaries in these countries. At the same time, taxpayers in more expensive countries tend to get back more from the Government in terms of better and more affordable healthcare, childcare and public transport — though there have been welcome improvements made here in Ireland in recent years, Mr Cassidy said. He called for the Government to lower our standard rate of VAT, which at 23pc is one of the highest in the world.
Irish Independent
12-06-2025
- Business
- Irish Independent
Levy on electricity bills to subsidise wind farms set to fall
Energy regulator, the Commission for the Regulation of Utilities, has decided to set the levy at €1.94 a month from October. This works out at €23 a year, and is half of what the Public Services Obligation (PSO) levy is at the moment. Electricity prices in this country are already among the highest in Europe However, it comes after a warning this week that household electricity bills are to be hit with an increase by at least €83 a year to pay for a major upgrade of the country's power system. Households currently pay on average €254 per year as part of their bill to help fund annual upgrades but that would increase to €337 next year under the current proposal. ESB Networks has asked the energy regulator to approve a price increase that would enable it to fund investment of between €10.1bn and €13.4bn over the next five years. At the lower estimate, the average residential bill-holder would be charged €1.60 extra per week, totalling €83 per year or €415 over the investment period. This is on top of the standing charge imposed on electricity bills. The CRU is tasked with working out how much money wind farms and solar panel operators will need each year to enable them to supply electricity. This is charged to households and companies in the form of the PSO levy. The regulator has now issued a decision paper which indicates that the PSO levy for 2025/26 has been calculated that €156.22m. This is the amount the CRU says will be required to support these renewable energy projects. 'This will result in a monthly charge of €1.94 and €7.59 for domestic and small commercial customers, respectively,' the CRU said. Last year it was revealed that the average household electricity bills was to rise by €100 over a year from last October after the energy regulator approved an increase in the funding needed to operate and develop the electricity grid. Daragh Cassidy of price comparison site said the proposed reduction in the PSO levy is obviously welcome. But wholesale electricity prices remain so high. This is why less money is needed to support renewable projects as they are already receiving enough money for the electricity they generate on the open market. 'But given how high prices remain, many households will probably be wondering why the levy is still needed at all,' he said. Mr Cassidy said the move towards net zero is going to be difficult and billions of euro is needed by EirGrid and the ESB over the coming years to help reinforce our grid in order to meet our climate targets. 'And while renewable energy should help electricity prices ease from their near-record highs over the coming years, some of the savings will be cancelled out by the money that's needed to invest in infrastructure like battery storage, interconnectors, and the grid itself to better manage all the renewable energy.' The executive said electricity prices in Ireland are still around 70pc to 80pc above where they were before the war in Ukraine broke out. It means the average household is still paying over €500 a year more for their electricity than they were only a few years ago. It is similar for gas. But it is highly unlikely prices will revert anywhere near to pre-war levels in the medium term unfortunately.
Irish Independent
11-06-2025
- Business
- Irish Independent
New mortgage rates fall for the third month in a row
Meanwhile Pepper, the largest servicer of mortgages on behalf of vulture funds, has promised more rate reduction for 'mortgage prisoners' trapped with it. Overall new mortgage rates fell to 3.72pc in April, down from 3.77pc in March, Central Bank of Ireland statistics show. Mortgage rates are now at their lowest level in just over two years. The Eurozone average rate increased marginally to 3.34pc. However, rates varied hugely across the currency bloc. They are as low as 1.69pc in Malta to as high as 4.40pc in Latvia. Ireland had the fifth highest rates in the Eurozone. This is a vast improvement on a few years ago when mortgage rates in this country were among the highest in the area. Also falling, but at a faster rate, are the interest rates banks are paying savers. The Central Bank of Ireland figures show that the average interest rate on household deposits with a fixed maturity fell from 2.26pc to 1.95pc. This reflects the fact that the European Central Bank cut rates for the eighth time last week putting pressure on savings and deposit rates. One more rate cut is expected by the money markets, possibly in September. Daragh Cassidy, head of communications at mortgage broker said the gap between Irish mortgage rates and European ones was narrowing fast. 'Although we now have the fourth highest rates in the Eurozone, the 0.38 percentage point gap between the average Eurozone rate and the average Irish rate is actually the smallest it's been in 10 months.' He said the ECB cut rates again this month, and is likely to cut rates once more before the end of the year. This should lead to mortgage rates in Ireland continuing to creep a bit lower over the coming months. The lowest rate in the market is currently just under 3pc, which is with Avant Money's new tracker-like variable product which tracks the Euribor, Mr Cassidy said. ADVERTISEMENT Learn more AIB and PTSB both offer fixed rates as low as 3pc, but homeowners much have a Building Energy Rating of B3 or better. Mr Cassidy said: 'We could see a fixed rate slightly under 3pc on offer by the end of the year for mortgage customers with big deposits. However, the sub-2pc rates we saw as recently as 2022 don't look like returning any time soon.' He said this is particularly relevant for some of those coming off fixed rates in the next year or so. Despite the overall decline in rates, some may still be facing higher repayments than those they have been used to when they come to re-fix, he added. And asked if it has plans to pass on the latest ECB rate cut to its customers, Pepper Advantage said it expects to pass this on. 'Pepper Advantage recently cut rates in April and anticipates further reductions for customers in the near future. Pepper Advantage continues to monitor ECB interest rate changes with a view to passing them on to customers.' People whose mortgages are serviced by the likes of Pepper Advantage on behalf of vulture funds are known as 'mortgage prisoners'. This is because they are only offered very high variable rates and are unable to fix. They are unable to move their mortgage to another lender as many of them are either in arrears or fell behind on their payments in the past.
Irish Independent
30-05-2025
- Health
- Irish Independent
Smokers and vapers paying almost double the price non-smokers pay for life insurance and mortgage cover
Quitting smoking and vaping could save individuals and couples tens of thousands of euro over the lifetime of a mortgage protection, life insurance, and specified illness policy. Vapers are also being warned about the financial consequences of their habit, according to new research from price-comparison site and brokerage firm The research also shows the importance of shopping around, even for non-smokers. Ahead of World No Tobacco Day tomorrow, smokers are being encouraged to quit: not just for their health, but for their wallets too. The research showing that the cost of life insurance is almost double for smokers was carried out this month by comparing prices for smokers and non-smokers from the country's five leading life insurers: Aviva, Irish Life, New Ireland, Royal London Ireland, and Zurich Life. As well as being a price-comparison and switching website, is a broker for both life insurance and mortgages. Smokers would pay at least €192, a difference of almost €33,000 over the term When it comes to mortgage protection insurance, a 38-year-old couple could pay as little as €35.60 a month for €300,000 in cover over 30 years if they are both non-smokers. But if both are smokers, the cost jumps to €70. Bonkers said this is an increase of almost 97pc, or nearly €12,500, over the life of the policy. Mortgage protection cover is a legal requirement for anyone taking out a mortgage in Ireland. Adding €100,000 in specified illness cover to the same policy would cost €101 a month for non-smokers. But smokers would pay at least €192, a difference of almost €33,000 over the term. ADVERTISEMENT The gap is even wider for life cover. Life cover pays out a tax-free lump sum if one of the insured dies during the term of the policy and is considered an essential part of financial planning for families. A non-smoking couple could secure €300,000 in cover over 30 years for around €51 a month, while smokers would pay at least €104. This is a difference of almost 103pc, or almost €19,000 over the lifetime of the policy. And for a standalone specified illness policy, worth €150,000 over 30 years, non-smokers would pay €195.87 a month. Smokers would be charged €333.44 – almost €50,000 extra over the full term. While smoking has declined in recent decades, about 16pc of people aged 15 and over in Ireland still smoke either daily or occasionally, according to Census 2022. However, many more vape. Daragh Cassidy of said vapers, even if they have never smoked in their life, will still be treated as smokers by life insurers. World No Tobacco Day is on May 31 every year. It is an awareness day created by the World Health Organisation (WHO) to highlight the health risks associated with tobacco use. Mr Cassidy said: 'Quitting smoking really is good for your pocket as well as your health. It's not just the cost of cigarettes that you'll save on. As our research shows, the price you pay as a smoker for important life insurance products such as mortgage protection, term insurance, specified illness cover and income protection is often close to double what a non-smoker would pay. 'This means kicking the habit can save you tens of thousands of euro over the lifetime of these products.'
