From cost-of-living to social welfare, pensions, tax, childcare and a few surprises Government announce €11bn Budget package
Personal rates of social welfare will rise by €12 from January 2023, with a proportionate increase for qualified adults and people on reduced rates of payment.
The top up paid to people on CE, TUS and the Rural Social Scheme will increase by €5. The Domiciliary Care Allowance will be increased by €20.50 per month and will be available to parents whose child is in hospital for up to 6 months.
The income threshold for Fuel Allowance will be widened.
A one-off double week of all weekly social welfare payments (including pensions) will be paid in October 2022. In addition, a one-off double payment of Child Benefit will be paid in November 2022.
A one-off payment of €500 will be paid to people who get the Working Family Payment
The normal Christmas Bonus of 100% will be paid in early December 2022 to people getting a social welfare payment for at least 4 months.
Fuel Allowance and Living Alone Allowance
People who get Fuel Allowance will get an additional once-off €400 payment this winter.
People who get the Living Alone Increase will get an additional €200 lump sum this winter. If you get both Fuel Allowance and the Living Alone Allowance, you will get both additional payments.
One-off payments for Carer’s and people with disabilities
The weekly rate for a qualified child will increase by €2 from €40 to €42 for children under 12 years of age. It will increase by €2 from €48 to €50 for children aged 12 years and over (from January 2023).
The Working Family Payment thresholds will increase by €40 across all family sizes.
All domestic electricity customers will get £600 credit off their electricity bills. The credit will be paid in 3 instalments of €200. The first payment will be made before Christmas.
More people will qualify for Fuel Allowance. People getting Fuel Allowance will get an additional once- off payment of €400 this winter.
The 9% VAT rate for gas and electricity is extended to 28 February 2023. The reduction of 21 cent per litre for petrol, 16 cent per litre tax for diesel and 5.4 cent per litre for Marked Gas Oil are also extended to 28 February 2023.
£270 million will be available to help community groups, schools, hospitals, sports clubs and other organisations to pay energy bills.
Supports will also be available for businesses (see ‘Employment and business’ below).
The rate of income tax will stay the same, but income tax bands (the rate at which you pay the higher rate of tax) and tax credits will be increased.
The standard rate tax band will increase from €36,800 to €40,000 for a single person, with proportionate increases for married couples and civil partners The Personal, Employee and Earned Income tax credits will increase by €75 to €1,775 The Home Carer Tax Credit will increase by €100 to €1,700 Universal Social Charge (USC) The ceiling of the 2% USC band will increase by €1,625 to €22,920, so that the salary of a full-time worker on the minimum wage will remain outside the higher rates of USC.
Renters can claim a €500 tax credit for this year and subsequent years.
The reduced VAT rate of 9% for the hospitality sector will continue until 28 February 2023.
The national minimum wage will increase by €0.80 to €11.30 per hour (January 2023).
A new Temporary Business Energy Support Scheme will be administered by Revenue.
The annual limit of the Small Benefit Exemption will increase from €500 to €1000 from 2022.
The cost of applying for a Special Exemption Order for late night venues will be halved to €55.
Free schoolbooks for primary schools From 2023/24, schoolbooks for primary school children will be free.
686 new teachers will be recruited to support children with special needs and 1194 new Special Needs Assistants (SNAs) will be recruited.
The Student Contribution is reduced from €3000 to €2000. This applies from the 2022/23 academic year. It will be reduced by a further €500 next year.
The Budget is like a painting — framed by how much the Government has to spend and viewed very differently by everyone.
Today’s €4.7 billion calculations, €1.5 billion of which is new spending commitments or tax changes, allow us to picture how State, personal and business finances will add up for 2022 and beyond.
The key Budget points are outlined here …
Employment Wage Subsidy Scheme will remain in place, in a graduated format, until 30 April, 2022 – the scheme will close to new employers from 1 January, 2022
General stock relief will continue to the end of 2024
Stock relief for Young Trained Farmers and Farm Partnerships, and the Young Trained Farmer stamp duty relief will continue to the end of next year
Excise duty on a packet of 20 cigarettes rises by 50 cent, with a pro-rata increase on other tobacco products
In her first budget, as Minister for Social Protection, Heather Humphreys has secured an overall package of over €25bn for social welfare measures in 2021 that focuses on the unprecedented economic circumstances brought about by the COVID-19 pandemic.
A 100% Christmas Bonus will be paid in December 2020 to recipients of long-term Social Welfare payments (min €20 payment). People in receipt of the following payments will receive the Bonus: