All public transport fares are to be reduced by 20% under Government plans to reduce the cost of living.

The fare changes will take effect in April until the end of the year.

The reductions will apply across Bus Éireann, Irish Rail, Dublin Bus, Go Ahead, Luas, DART and Local Link services.

The Cabinet sub-committee on Economic Affairs has also agreed to a €125 lump sum payment to those in receipt of the Fuel Allowance.

It will be paid around St Patrick's Day.

Cost of living cuts: What are people getting?

The electricity rebate has also been increased to €200 household, which will be paid towards bills in April.

And the contribution to the Drug Payment Scheme has also been reduced from €100 to €80.

Overall, around €300m of new spending was confirmed.

While Sinn Féin's finance spokesperson says the measures being announced do not go far enough.

Earlier Pearse Doherty said the electricity grant would not be sufficient.

"It's not enough, and it's probably just another example - if we ever needed one - that this Government is out of touch.

"They don't just get it, they don't understand where ordinary workers and families are at.

"We had announcement of part of that package last year, in terms of this €100 energy credit.

"They're trying to roll that in to re-announce it again today.

"In reality, I think the additionality is about somewhere just over €200m - and that's nowhere near enough, it will only scratch the surface.

"What we needed here was real ambitious coming forward from Government.

"We needed to deal with the issue of runaway rents, both in this city and indeed now across this State.

"The Government could freeze rents, but more important they could put a month's rent back into renters pockets - that's what we're arguing for."

Additional reporting: Jack Quann