Budget 2022 main points: What’s in it for you?

Remote working relief worth about €100 a year, €5 welfare increase, minimum wage up 30c

Irish Times journalists look at the political and economic impact of the multi-billion-euro Budget 2022.

 

Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath on Tuesday presented Budget 2022, a multibillion-euro package aimed at reducing the cost of living, aiding the economic recovery as Ireland emerges from the Covid pandemic and tackling major problems including housing and climate change.

Here are the main points from it:

Workers

- Income tax package of €520 million

- Standard rate bands increased by €1,500

- Personal tax, employee tax and earned income credits by €50

- Minimum wage up 30c to €10.50 an hour

- Income tax deduction of 30 per cent of cost of vouched heat, electricity and broadband expenses incurred while working from home

- Tax credit for remote working, which will equate to a discount of 30 per cent on energy bills for each day worked from home. Tánaiste Leo Varadkar said he expects the average level of support that will be claimed with regards to utility bills is around €220 per annum. According to officials, the net  amount people at the top rate of tax  would receive under the scheme would be about €100 per year.

Business

- Employment Wage Subsidy Scheme to be extended

It will be wound down in the new year, with two rates introduced, and closed to new entrants

- The 9 per cent Vat rate for the hospitality sector has been retained until August next year

- 50 per cent excise relief for small producers of cider

- Employment Investment Incentive scheme extended and reformed

- €30 million for State’s innovation equity fund, matched by European Investment Bank funding

- Tax relief at 32 per cent for investment in digital gaming, up to €25 million per project

- Bank levy to be extended, but reduced to €87million as banks leave market, and reviewed

- €60 million for the extension of commercial rates waive on targeted basis, from 2021 funding

Aviation and Transport

- €90 million aviation package to help industry recover from lockdown

- €60 million for capital and operational aviation grants

- €1.4 billion for public transport networks

- €25 million for a youth travel card for those aged 19-23

- €360 million for active travel

Carers and people with disabilities

- Domiciliary care allowance paid for six months, not three

- Wage subsidy scheme rate for disabled will rise by €1 per hour

- Income disregard for Carer’s Allowance increased to €350 for a single person and €750 for a couple

- Earnings limit on disability allowance up to €375 from €350

- Weekly means disregard for disability allowance up from €2.50 to €7.60 per week

Children, Parents and Childcare

- €716 million package including €69 million to freeze fees at services that take funding for improved staff terms

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- National Childcare Scheme universal subsidy extended to under-15s

- Removal of pre-school and school hours from subsidised hours, to benefit 5,000 children from low income families

- Parents benefit extended by two weeks (to seven weeks) from next July

- Back to School allowance up €10

- Qualified children rate up by €2 for under 12s, €3 over 12s

Climate

- Carbon tax up €7.50 per tonne of C02

- €202 million for 22,000 home energy upgrades

- €174 million for energy efficiency measures

Covid

- Total package of €7 billion, of which €4 billion held in reserve

- €30 million from 2021 funding for pandemic hit areas - palliative care, mental health, disability services

- €17 million for once-off Covid capital enterprise supports

Drivers

- Revision to VRT table, with uplift in rates of between 1-4 per cent depending on what band a vehicle is in

- A litre of diesel will rise by 2.5 cent – or €1.48 for the average full tank – while petrol goes up 2.1 cent or €1.28 on a full tank.

Farmers and rural Ireland

- Stock reliefs to be extended to 2024 (general) and end December 2022 (young trained farmers)

- Increased funding of €32 million for Department of Agriculture, most farm supports maintained

- €4 million for SICAP programme and €5million for community centres

Health

- Pack of 20 cigarettes up 50c, to cost €15

- Covid funding down to €1 billion, with €200 million held in reserve

- Core funding of €20.38 billion, or €22.2 billion once Covid and capital spend included

- 19 additional care beds at cost of €10.5 million

- €250 million for waiting list plan

- Free GP for 6 and 7 year olds

- Lowering of drug payment scheme threshold to €100

- Reduction in hospital charges for under 18s

- €30 million high-tech drugs package

- €31 million women’s health package

- €105 million for disability services, €37 million for mental health services and €30 million for national strategies

Housing

- €6 billion total funding, with €2.5 billion for social housing next year

- €174 million for affordability measures

- Zoned land tax to be introduced at a lower rate than vacant land tax - three per cent not seven per cent

- Lead in times for 2-3 years depending on when land zoned

- Help to Buy scheme extended by one year, and to be fully reviewed

- €168 million in current expenditure, or 7 per cent increase, for 14,000 HAP tenancies

Infrastructure

- €11.2 billion under the National Development Plan

- €30 million for renewal of roads, from 2021 funding

Justice and Policing

- €145 million additional funding will pay for 400 new civilian staff and 800 gardaí

Schools

- €9.2 billion, including €792million for capital funding

- 980 additional special education teachers and 1,165 additional SNAs

- 350 additional teaching posts to bring staff/student ratios in primary schools down one point

- €18 million for Deis expansion and €4 million for hot school meals

- €50 million in ICT grants for schools

Social welfare recipients

- Overall package of €558 million to fund €5 weekly increases for pensioners, jobseekers and other welfare recipients from January, and the fuel allowance

- Living alone payment up €3

Students, young people and universities

- €3.7 billion overall, with €68 million funding additional 3,320 CAO places

- Susi maintenance grant up by €200

- Qualifying income thresholds for grants up €1,000

- €200 fee for post-Leaving Cert course abolished

- Reduction in PRSI contributions required to qualify for treatment benefits from 260 weeks to 39 weeks for 25- to 28-year-olds

- €34 million for apprenticeships

Tourism, Arts and Sport

- €50 million for further business supports

- €39 million for enhanced tourism marketing

- €25 million for live entertainment supports

- €5.5 million for new media commission

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