Ireland's Budget for 2023 has been announced with everyone in for some boost whether it be income tax changes or an energy credit.
Finance Minister Paschal Donohoe told the Dail in a lengthy speech that while the country emerged from the Covid-19 pandemic last year, it is now facing a further economic challenge.
"If you are an older person, you are having to spend more of your pension on heating your home; if you are looking after a family, you are facing higher grocery bills; if you are running a small business, you are trying to cope with increases in the cost of energy," he added.
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"This is why, Budget 2023, presented by Minister (Michael) McGrath and I today, is and must be a cost-of-living budget, focused on helping individuals, families and businesses to deal with rising prices.
"The onset of the war in Ukraine has sent shockwaves throughout the global economy.
"This shock is most clearly evident in energy and commodity markets, where prices surged at the onset of the war and have remained high.
"The inflationary pressures from energy have been further compounded by the imbalance between demand and supply that emerged as the economy reopened at the start if the year.
"Consumers released substantial pent-up demand as restrictions were eased, while supply chain bottlenecks prevented firms from keeping up with that demand."
So, what's in it for you? Here's all you need to know.
Budget 2023 all you need to know
Energy credits
Every household in Ireland is set to receive three €200 energy credits from the government over the next six months at a cost of €1.2bn
The measure was announced in the Budget on Tuesday by Finance Minister Paschal Donohoe and is aimed at alleviating the impact of spiralling bills on families and individuals.
All energy companies operating in Ireland have increased their rates, some multiple times, over the last year with hard-pressed billpayers paying hundreds more a year in excess charges.
Social Welfare
A number of social welfare announcements from Minister McGrath:
- Weekly social welfare payments will increase by €12 per week
- 'Christmas bonus' welfare payments to be paid in early December
- Separate double payment of weekly rates in November
- The payment threshold for the Working Families Payment rises by €40 per week
- Over 70s will also see an increase in the fuel allowance for €500 for a single person and €1,000 for a couple
There will be a €400 lump sum payment made to fuel allowance recipients
Minister McGrath tells the Dáil that a pensioner in receipt of fuel allowance and living alone will receive an additional €2,375 by the end of 2023 thanks to Budget measures announced today.
Income tax change
Minister Donohoe has confirmed Standard Rate Cut Off Point for the lower rate of 20% is set to be increased by €3,200 to €40,000 - with increases for married couples and civil partners.
It effectively puts €640 a year back into a worker's wages. If you're a PAYE worker earning €50,000 for example, you could stand to see between €50 and €60 more in your pay packet each month. A worker on this salary will now pay €8,000 in tax on the first €40,000 and another €4,000 on the final €10,000 of their gross pay.
On top of that, the Minister announced an increase in personal tax credits by €75 each. Also the 2% band of USC rises to exclude minimum wage workers. This could be worth an extra €75 to €115 per year in workers' pockets on top of the headline income tax savings.
Healthcare
- Free GP care for 400,000 extra children
- Expanding free contraception scheme to those aged 16-30 years
- Funding allocated for public access to IVF
- Additional funding for screening for women's healthcare services
Parents
- A minimum of €160 off childcare costs
Double payment of child benefit in November
Extension of free GP care scheme
Free school books
Funding given to the Deparment of Education allows for 686 new teachers for special schools and classes on top of 1194 SNAS
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The pupil to teacher ratio drops for third year running - bringing with it 370 new jobs.
Minister for Finance Paschal Donohoe (right) and Minister for Public Expenditure Michael McGrath arriving at Government Buildings, Dublin, to unveil the Government's Budget for 2023 (Damien Storan/PA Wire)
Student benefits
Confirming a number of key benefits for students in Budget 2023, Minister McGrath announced
- A once-off reduction of the Student Contribution Fees of €1,000 for eligible students
- A once-off double monthly payment of the SUSI Maintenance Grant
- A €1000 increase to the post-graduate fee contribution grant
- The extension of the 20% reduction on public transport fares until the end of 2023
- The student contribution fee will be reduced by €500 on a permanent basis for families who earn between €62,000 and €100,000
- All SUSI Grants will be increased between 10% and 14% from September of 2023
Smokers
The excise duty on a packet of 20 cigarettes will be increased by 50c, "with a pro-rata increase on other tobacco products."
However, HRT and nicotine replacement products will become VAT-free.
Carbon tax
Minister Donohoe said the rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €41 to €48.50 from October 12, 2022.
This will see an increase of just over two cents - including VAT - per litre of petrol and diesel.
However, the minister said he recognises that the ongoing cost-of-living crisis is having a negative impact on families across Ireland and so the Government is proposing to offset this carbon tax increase by abolishing the National Oil Reserves Agency (NORA) levy.
Farmers to be assisted with climate emissions and Brexit fallout
€2.1bn will be allocated to the department of Agriculture
- €500m to the sustainability of Irish agriculture and the sector's climate emissions
- €238m to the Brexit Adjustment Reserve
Social housing
€1.7 billion will be allocated for social housing in Budget 2023.
Acknowledging that "significant progress" is being made by the Government on housing, Minister Michael McGrath announced that a total of €6.2 billion will be allocated to the Department of Housing for 2023, with €1.7 billion for social housing.
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