TURNING IT TO €11BN..
Splurge to tackle cost of living crisis Childcare fees cut, More benefits dole & pension hikes coming in spring
BUDGET 2023 has unleashed the biggest giveaway in the history of the State as €11 billion has been splurged to help households tackle the cost of living crisis — with extra billions being set aside if more supports are needed.
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 The Star has learned that this is just the beginning as preparations are already underway to introduce another multi-billion cost of living package next February – when the current supports run out.
Tánaiste Leo Varadkar exclusively told The Star 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 more energy credits, further supports for business, keeping the temporary VAT cut for hospitality and continued reductions in motor fuel taxes.
Mr Varadkar said that the Government is putting money aside — up to €6billion this year and next — and will step into the breach to help homes and businesses again after February if needed.
Money Ministers Paschal Donohoe and Michael McGrath have unleashed a bumper package of increased spending worth €11.3billion that they promise will put meaningful cash back in people’s pockets.
Stuffed
Finance Minister Mr Donohoe and Public Expenditure Minister Mr McGrath stuffed the Budget with €6.9billion in extra spending for 2023, while announcing that the special cost of living package for the rest of this year will see €4.4billion worth of cash splashed.
In what is one of Ireland’s most significant budgets in years, Mr Donohoe pledged that the multi-billion euro package will help families, individuals and businesses.
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 fags has risen 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.
Mr McGrath confirmed that every household will receive energy credits totalling €600 paid 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 one-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 €500 in November.
And a double child benefit payment worth €140 per child will be made in November.
Slashed
Those in receipt of the Carer’s Support Grant will get €500 in November, while a one offpayment 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 one-off double monthly payment for those on SUSI grants. The 20 per cent cut on transport fares will continue into next year, the Dail was told.
Childcare costs will also be slashed by 25 per cent for centres registered under the National Childcare Scheme.
The cost to the State will
‘INADEQUATE’: Ged Nash