The Government has pledged to spend billions – but how much of all this extra monetary support will make it into your pocket?
With winter looming amid an unprecedented cost of living crisis, now is the time for people to plan their own family budgets for the months and year ahead.
Here are some of the key announcements in Budget 2023 and how they will affect you.
Cost of living supports
A double Child Benefit payment (worth €140 per child) will be paid in November.
A once-off double week “Cost of Living Support” payment to all social welfare recipients in October – the normal Christmas Bonus will also be paid in early December.
Extra €500 for Working Family Payment and Carer Support Grant recipients in November.
Once-off payment before Christmas of €200 to recipients of the Living Alone Allowance and €500 to those on Disability Allowance, Invalidity Pension and the Blind Pension.
Social protection (changes for 2023)
€12 per week increase for every social welfare recipient, including pensioners.
Weekly Fuel Allowance means limit for over 70s extended to €500 for single people, €1,000 for couples.
Tax changes
Entry point for paying higher 40% income tax rate is increased (by €3,200) to €40,000 a year while main tax credits rise by €75.
Home Carer Tax Credit increases by €100, to support stay at home parents.
Second USC rate band (2% rate) will rise from €21,295 to €22,920.
What does this mean for me? A single person with no children earning €45,000 will be €831 better off a year while a single person on Minimum Wage will gain €1,225 a year. A married couple with two children and one income of €35,000 should be €1,028 better off while a married couple with two children and two incomes (earning around €85,000 between them) will have €1,660 more a year in their pockets.
Energy assistance
€600 in electricity credits for all households to be paid in three instalments of €200.
Fuel allowance payment recipients to receive an extra lump sum of €400 before Christmas.
Housing/rent
Help-to-Buy scheme will continue, at current rates, until the end of 2024.
Taxpayers who rent will receive a new rent tax credit valued at €500 per year from 2023 – it can also be claimed in respect of rent paid in 2022.
A new Vacant Homes Tax is being introduced for residential properties which are occupied for less than 30 days in a 12 month period.
Childcare
Funding to support a reduction of up to 25% in the weekly fee for those using the National Childcare Scheme – this should result in up to €175 a month savings for parents in 2023.
Healthcare
All inpatient hospital charges will be abolished.
Free GP care extended to more than 400,000 people. This pledge includes, by the end of 2022, all children aged six and seven.
Expanding free contraception from women aged 17 to 25 to all those aged 16 to 30 years.
Providing financial support for access to IVF treatment.
Education
Reduction of pupil-teacher ratio in primary schools to a historic low of 23:1
Free primary school books for all children from autumn 2023
Additional 686 Special Educational Needs teachers and 1,194 Special Needs Assistants
€100 million to help schools deal with rising energy costs in 2022
School Meals Programme extended to an additional 310 schools
Third level
All third level students will see a once-off reduction of €1,000 in their college fees this year.
All SUSI maintenance grants will be increased by between 10% and 14% in September 2023 with a once-off double monthly payment before Christmas.
Private and public transport
Excise cuts for petrol, diesel and marked gas oil extended until 28 February, 2023.
Carbon tax increases on petrol and diesel from 12 October (adding 2c per litre to petrol and diesel) will be offset with a reduction (from 2% per litre to zero) of the National Oil Reserves Agency (NORA) levy.
20% public transport fare reduction and the Youth Travel Card discount of 50% to end of 2023.
Business supports
Temporary Business Energy Support Scheme – once eligibility criteria are met – will cover 40% of an organisation’s energy bill increases subject to a monthly cap of €10,000.
Non-cash benefits or rewards to workers (without the payment of income tax, PRSI and USC) increased by €500 to €1,000 and can be used in the current tax year.
50% excise relief to independent small producers of cider and pear cider (‘perry’).
Agriculture
Five agricultural tax reliefs, due to expire this year, will be extended.
A new scheme to help provide financial support for modernising slurry storage facilities.
Farmers can apply for the new Business Energy Support Scheme
Tobacco
Excise duty on a pack of 20 cigarettes rises by 50c, with a pro-rata increase on other tobacco products.
Article Source: At a glance: Here are the key points from Budget 2023 – RTE