Budget 2023 has unleashed the biggest giveaway in the history of the State as €11billion has been splurged to help households tackle the cost of living crisis.
Pension hikes, reduced college fees, free energy credits, cheaper public transport, slashed childcare fees and across the board welfare hikes are all part of the bonanza. But preparations are already underway to introduce another multibillion cost of living package in February – when the supports unveiled in the Budget run out.
Tanaiste Leo Varadkar exclusively told the Irish Mirror last night that the Government is already “putting money in the tank” to deal with the cost of living crisis next year. He indicated this could include even more energy credits, further supports for business, the temporary VAT cut for hospitality being kept and continued reductions in motor fuel taxes.
Read more: Budget 2023 timeline: The key dates for each social welfare payment
Mr Varadkar told the Mirror that the Government is putting money aside – up to €6billion this year and next – and will step in to help homes and businesses again after February if that is needed. He said: “We will have to see where we are in January, February.”
Mr Varadkar added when the cost of living supports run out in March, that the Government will have to “see where we stand” at that stage. The ‘money ministers’ Paschal Donohoe and Michael McGrath have unleashed a bumper package of increased spending worth €11.3bn that they promise will put meaningful cash back in people’s pockets.
Finance Minister, Mr Donohoe and Public Expenditure Minister, Mr McGrath, stuffed the Budget with €6.9billion in extra spending for 2023. They also announced the special cost of living package for the rest of this year will see €4.4bn splashed.
Mr Donohoe told the Dail that while the country emerged from the pandemic last year, it is now facing a further economic challenge. He said: “This is why, Budget 2023, presented by Minister 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 cost of booze will not go up, but the price of a pack of 20 cigarettes has gone up by 50c. As part of the Budget, the Government will introduce a new rent tax credit of €500 per year for renters.
Mr Donohoe added: “This measure, aimed at those who do not get any other housing supports, will apply for 2023 and subsequent years but I am providing that it may also be claimed in respect of rent paid in 2022.”
Approximately 400,000 people are expected to benefit from the measure. Mr McGrath confirmed that every household will receive energy credits totalling €600 across three instalments.
The first will be paid before Christmas while two other instalments will be paid next year. All social welfare payments will also go up by €12.
A lump sum of €400 will also be made to those who receive the weekly fuel allowance before Christmas. Those who receive a weekly social welfare payment will receive a once-off double payment next month.
This will go to pensioners, carers, people on disability payments and jobseekers. Those in receipt of the Working Family Payment will get an additional lump sum of €500 in November.
A double child benefit payment worth €140 per child will be made in November. Those in receipt of the Carer’s Support Grant will get a €500 payment in November, while a one off-payment of €200 will be made to those in receipt of the Living Alone Allowance.
Student fees will be slashed by €1,000 and there will be a once-off double monthly payment for those who receive the SUSI grant. The 20% reduction on transport fares will continue into next year, the Dail was told.
Childcare costs will also be slashed by 25% for centres registered under the National Childcare Scheme. The cost to the State will be some €121million while the measure is set to save families up to €175 a month.
The finance minister also confirmed that the 9% VAT rate for the tourism and hospitality sector will end in February next year. Most of the Budget was well-leaked in advance, with the Mirror flagging almost all of today’s announcements.
However, one new measure that emerged yesterday will hammer property hoarders as the country is in the middle of a rental crisis. A new penal vacant homes tax worth three times the regular LPT (Local Property Tax) will be slapped on property owners who don’t have a place occupied for more than 30 days a year.
Opposition and campaign groups emerged to criticise the Budget as not going far enough. Sinn Fein’s public expenditure spokeswoman, Mairead O’Farrell, said Ireland was not “no country for old men,” but “no country for young people” after the latest budget.
And Labour finance spokesman, Ged Nash, slammed the Budget as “inadequate” in the face of that “a confetti-like throwing of a few bob”. Mr Nash slammed the Budget as “inadequate” in the face of that “a confetti-like throwing of a few bob”.
General Secretary of the Irish Congress of Trade Unions, Patricia King criticised the “missed opportunity” in this year’s Budget.
READ NEXT:
- Budget 2023: Full list of measures confirmed to tackle cost of living crisis
- Budget 2023: Price of cigarettes goes up again by 50c in unwelcome news for smokers
- Budget 2023: Parents the 'big winners' but childcare waiting lists will 'boom' under new measures
- Budget 2023: Dublin hairdresser fears VAT increase will see customers turn to shadow economy
- Rent credit and major changes to tax brackets announced by Minister Donohoe
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