A major focus of Budget 2023 will be to help people with the cost of living increases.
Pensions and social welfare payments are set to rise in Budget 2023. There may be help for renters, bonus electricity credits and a double social welfare payment before Christmas too.
Around €1 billion is planned to be set aside for the new Cost of Living Budget. This is completely separate from the already allocated €6.7 billion to Budget 2023.
When is the Budget going to be announced?
It was due to be announced on Tuesday, October 11. This has been brought forward to Tuesday September 27.
Here's what is being considered ahead of Budget 2023:
Double social welfare payment
This bonus will be paid to all pensioners and welfare recipients in Autumn with a cost of €350 million to the state. It’s believed the welfare bonus payment will be part of Budget 2023.
Child Benefit
A once-off double payment of the monthly €140 child benefit sum may be announced on Budget day. Those getting child benefit could be in line for a €280 one-off payment if they have one child or €560 if they have two before Christmas. A family with three children would be eligible to receive €840 and a family with twins would also get €840 as they receive one-and-a-half times the normal rate per child.
€200 electricity credit
Tanaiste Leo Varadkar previously said that giving the public another €200 electricity credit is an option. "It's a simple thing to do and if you give it to every household, it's a simple way of doing it," he said.
Tax bracket
There are discussions to introduce a third tax band for middle-income earners , which could see over one million taxpayers pocket an extra €1,000 per annum.
Two options are under consideration. The first option is income tax at 30 per cent for earnings between €36,800-€41,800, which would cost the Exchequer €525 million a year. This would see individuals and married couples with one earner take home an extra €500 a year.
The second option is to set the 30 per cent tax rate at incomes between €36,800 to €46,800, which would cost €945 million. Individuals and married one-earner couples would take home an extra €1,000 a year under this band.
Budget 2023: First hint of plans for alcohol, cigarettes, renters and landlords
Social welfare
There may be a €15 hike in pension and welfare payments in the upcoming budget. It is recommended in the Tax Strategy Group papers that all social welfare payments rise by €10 to €15.
If there is a €15 increase across all payments (costing the State around €1.1 billion), people on social welfare would receive €223 a week, while the State pension would increase to €268 per week. A €10 increase in all welfare payments is also under consideration along with a €10 hike in the Fuel Allowance and Living Alone allowance.
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