It’s only July, but the people of Ireland are already thinking about Budget 2023 while the cost of living continues to skyrocket.
Essential items like groceries, fuel, and household bills have increased dramatically with inflation continuing to rise. The Budget this year will come out on September 27 - two weeks earlier than planned - with a number of new measures to support those struggling.
Changes are expected to be announced for those claiming social welfare, the State pension and childcare. Here’s all you need to know:
Read more: Pensioners and social welfare recipients could receive early Christmas bonus
Fuel costs
The taxation on petrol and diesel is expected to change. The Government is set to extend current fuel tax cuts and reduce the VAT rate for electricity.
Additional fuel allowance payments may be allocated to eligible households, along with the consideration of another €200 electricity credit for all households.
Some parties have criticised the measures for not being means tested. However, Fine Gael is in favour of everyone receiving a payment.
Childcare subsidies
A reduced rate for childcare hopes to ease the pressure on parents forking out huge sums. The Federation of Early Childcare Providers is calling for a subsidy of €100 per child on the ECCE scheme to cover costs currently subsidised by the childcare owner.
Working Family Payment
The Green Party has called for an increase in the Working Family Payment as it would allow parents to earn more and still qualify for the payment of at least €20 a week. The payment is currently calculated on household income and the number of dependents within a home.
Student fees
Last week, Simon Harris said that he wants to see a reduced amount of the €3,000 student contribution fee from this October.
Pension
An extra week's payment of the state pension and social welfare is being considered by government for this Autumn to help ease the cost of living crisis.
The double payment would be similar to the Christmas bonus given to all pensioners and people on social welfare in the month of December, in a bid to ease the cost of living crisis. The measure will be announced on Budget Day which is expected to take place in September and it would cost about €350million.
New tax bracket
The Government is planning to introduce a new tax bracket in Budget 2023 according to Public Expenditure Minister Michael McGrath. He said that that new measures would see changes to income tax brackets so people don’t climb into higher tax brackets.
Leo Varadkar has been pushing for a 30 percent income tax-band which would see more money going to the public and less going to the taxman.
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