The largest cost increases in the past year were for education, housing and car insurance, figures show.

The new research also found that the majority of teenagers who could be paid the sub-minimum wage rate are receiving higher pay

The budget plan includes a pledge to deliver 10,000 affordable homes in 2024.

The USI said some students are working below the national minimum wage to pay for their education.

Mr McGrath made the comments while speaking to reporters in Cork on Friday.

It says the national minimum wage should increase by €2 from next January, with a similar rise the following year.

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The national minimum wage is no longer fit for purpose and should be replaced according to a trade union

The ISME claimed on Tuesday that moving to a living wage "will come at a serious economic and social cost". 

For someone on the national minimum wage working a 39-hour week, this translates to a pay increase of €31.20 a week, more than €120 a month, or €1,600 a year.

Trade unions have criticised Government plans to increase the minimum wage by 80 cent to €11.30 an hour, saying it does not go far enough to address the cost-of-living crisis

Tánaiste Leo Varadkar is also expected to recommend to the Cabinet on Wednesday that the living wage is set at €13.10 from next year