Thousands of cash-strapped Irish households are set to receive a number of payments from the Government before Christmas as Budget 2023 takes shape.
The long-awaited cost of living Budget will be announced next week by Finance Minister Paschal Donohoe and Public Expenditure Minister Michael McGrath and the government has promised some measures to reduce the impact being felt in people's pockets before Christmas as well as in the New Year.
With bills soaring across the board, people will be eagerly awaiting the Budget announcement this year, perhaps like no other, and a number of measures are beginning to leak from the Cabinet table.
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The big one in terms of energy will be credits that people can use to offset their rising electricity and gas bills. At least three credits will be applied to every home in the country over the next few months with the first of those, thought to be to the value of €200, landing before Christmas.
Eligible households may also receive a bonus €100 fuel allowance payment before Christmas as the winter sets in and the cost of fuel spirals for many.
€6.7 billion will be spent in this year's Budget with around €1 billion put towards tackling the cost of living crisis.
Here are some of the ways the government aims to help citizens beat the bills.
Energy bills
Households across the country have faced unprecedented increases in energy bills over the past year as Europe battles with rising inflation.
To combat this, a total of three €200 energy credits have been proposed.
Green Party leader Eamon Ryan has indicated that one payment could be made before Christmas, with the other two €200 lump sums to be paid before spring.
Fuel Allowance
The Fuel Allowance is set to see an increase of €4 to €5, bringing it to a rate of €37 to €38 in total, but it is yet to be decided if the increase will come into effect before Christmas.
The eligibility criteria to receive the Fuel Allowance are also expected to expand in this month's Budget.
The increase will likely be from January 2023 and will cost the State more than €400m.
Recipients will also receive a €100 lump sum in a one-off payment before Christmas to help with the cost-of-living crisis.
Petrol and diesel
The cost of petrol and diesel has skyrocketed over recent months, with many people struggling to travel to and from work due to ever-rising costs.
To tackle this, the Government is set to extend the reduction in excise duty on petrol and diesel, with some stating further reductions could also be introduced.
Childcare
Another area of focus in this year's Budget is Childcare.
Nationwide, the average monthly cost of childcare for parents is currently €750.
Fees are to be cut by 50 per cent over the coming two years, with a reduction of €200 expected for parents this year.
The taxpayer is set to take on the burden of childcare costs from parents through increased subsidies.
Tax breaks
Landlords are also set to benefit from this year's Budget as part of measures to prevent the exodus of small landlords from the rental market.
Renters could also receive a tax credit, which was removed in 2017 and could save them up to €1,440 annually.
Social welfare
A substantial social welfare package is also expected to be announced next week.
An increase of €15 had been discussed, but it is believed that a €10 increase could be a more realistic expectation.
A bonus social welfare payment made before December is also under consideration, which would be separate from the Christmas bonus.
Finance Minister Paschal Donohoe is also working on the proposal to increase the tax-free bonus amount an employer can give an employee from €500 to €1,000 annually.
Under current rules, employees can only receive a benefit of €500 in value, tax-free, each year from their employer.
This benefit must not be in cash but can be in the form of vouchers or cards that can be used to purchase goods or services.
Minimum wage
Budget 2023 is expected to see the minimum wage increase by a further 80c bringing it to a total of €11.30 per hour.
This will be the second year in a row it has been given a boost after officials raised the wage at the beginning of 2022 by 80c to its' current rate of €10.50 an hour.
The plans look the introduce a living wage to replace the minimum wage with the aim of it being €13.70 per hour by 2026.
Once-off payments
Other proposals also being considered include a double payment of social welfare, Child Benefit and a one-off double Working Family Payment.
Those in receipt of child benefit payments could be in line for a €280 one-off payment if they have one child or €560 if they have two.
If the Government agrees to the policy, parents will receive a huge boost, with a family with three children eligible to receive €840.
A family with twins would also get €840 as they receive one-and-a-half times the normal rate per child.
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