The Budget is to be presented in the Dail this Tuesday, with several financial supports expected to be announced in line with the cost of living crisis.
However, the full list of changes to social welfare entitlements has not yet been finalised. Minister for Social Protection Heather Humphreys most recently confirmed that a €20 increase on social welfare payments had been ruled out for the current budget, as the cost would take away from other measures such as fuel allowance.
The total cost of the Budget will exceed €6.5 billion, while the cost of living package will total an additional €3 billion to rollout nationwide. The measures planned for Budget 2023 are listed below.
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Double Payment
Although a permanent increase on social welfare payments has been rejected, the government previously announced that recipients could expect a double welfare payment prior to Christmas 2022. These payments form part of the cost of living package. Additionally, the payment will also be allocated to pensioners due to concerns they will struggle the most with rising costs.
Meanwhile, child benefit would also be targeted with a one off payment in order to assist parents nationwide. Families with one child can expect a €280 one-off payment if the plan is approved, while parents with two children could receive €560. A three-child family would be entitled to €840 under the proposals.
Additionally, the cost of childcare for working parents is also set to be addressed in the Budget. Minister for Children Roderic O’ Gorman previously told RTE’s Claire Byrne that the goal is to reduce childcare fees by at least 50% in the coming years. Families who have children enrolled in childcare facilities would gradually have costs reduced, starting out at a 20 to 25% decrease for one year before moving on to a 50% drop by 2024.
Pensions
The pension is set to increase by a minimum of €10 weekly, although attempts to raise it by €20 are reported as unlikely. The weekly allocation of the old age pension currently stands at €253.30.
The pension scheme itself will undergo radical change as government plans to introduce five respective pension rates. While people aged 66 will still be eligible to receive a state pension if they retire, they will receive a lower pension rate than people who stay on for consecutive years. The highest pension rate will be allocated to people who choose to retire from work aged 70.
People aged 66 will receive a minimum of €253 under the tiered system, while people who leave work at 70 can expect €315 weekly.
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Energy Credits
Households will also receive two separate €300 energy credits to help offset high electricity bills. The first payment will be issued in December, followed by the second instalment in March. The Government previously confirmed that an original €200 grant would be issued to households to meet electricity expenses in winter.
Fuel Allowance
Fuel is unsurprisingly high on the agenda for government as people struggle with rising costs. Minister Humphreys previously stated that a €924 sum would be issued to households over the space of several months to help them tackle their energy bills.
Crucially, households will be able to select an energy payment plan best tailored to their needs under the proposals. People can either a select a weekly energy payment, receiving € 33 weekly to target their bills, or two lump sums. The first lump sum will be provided this month and is worth €462, before people get a repeat payment of the same amount in January 2023. However, the allocation of fuel allowance is dependent on certain factors, such as a recipient's residential status and whether they are entitled to other social welfare payments.
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