A number of new measures to support those struggling with the cost of living crisis are expected to be introduced in Budget 2023.
Increasing inflation has left many Irish households struggling to make ends meet as the costs of essential items such as groceries, fuel, and household bills have skyrocketed.
As a result, it is likely that Budget 2023 will be held two weeks early this year, around the last week of September.
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Changes to social welfare, the State pension and childcare are expected to be announced.
The Government is also said to be considering one week’s extra payment to those collecting their pension and State benefits at the end of the year, according to the Independent.
This measure would cost the State €350m and would help 1.4 million people during the autumn months as prices continue to rise and home heating costs return for winter.
Fuel Allowance
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
Another focus of this year’s budget is to be childcare subsidies.
A reduced rate for childcare hopes to alleviate the pressure on the system, which has led to 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.
Student fees
Minister for Higher Education Simon Harris said last week he wants to see a reduced amount of the €3,000 student contribution fee from this October.
And said there was also a need for student grants to rise.
Working Family Payment
The Green Party has called for an increase in the threshold for the Working Family Payment.
This 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.
Fuel costs
The taxation on petrol and diesel is also expected to change.
The Government is set to extend current fuel tax cuts and reduce the VAT rate for electricity.
New tax bracket
Public Expenditure Minister Michael McGrath has indicated that the Government is planning to introduce a new tax bracket in Budget 2023.
Tanáiste Leo Varadkar has been pushing for a 30% income tax-band which would see more money in people’s pockets and less to going to the tax-man.
Speaking in the Dáil on Wednesday, Mr McGrath said that there would be a package of measures that would see changes to income tax brackets so people don’t climb into higher tax brackets.
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