‘Better-offs benefit more from Budget’
BUDGET 2023 is characterised by short-term thinking and lack of targeting.
At €11 billion, it has been hailed by the Government as a giveaway budget, one of the largest in years.
But who will benefit most from what has been announced?
Look behind the €4.1 bn in one-off spending and that becomes clear.
Those on high incomes will be most rewarded, with tax cuts and an array of universal lump sum payments that disproportionately benefit the better off.
The increase in the standard rate cut-off point will see an additional €640 for highest income earners, but is of no benefit to anyone earning less than about €37,000 a year.
It will only benefit approximately 20 per cent of workers.
In our alternative budget, the Social Democrats proposed a third rate of tax of 43 per cent on incomes above €100,000.
Advice
The universal energy credit of €600 will benefit low-paid workers and higher earners equally.
By taking this approach, the Government ignored expert advice to target such supports at those most at risk of falling into poverty.
The reality is that some households can absorb price increases more than others.
We had proposed graduated cash payments which would have paid €800 over three instalments to lowincome households.
One of the biggest disappointments of this budget is the failure to adequately increase core social welfare rates – or indicate if they will be benchmarked against the minimum costs-of-living.
In the middle of the worst cost-of-living crisis in a generation, the Government has only increased those rates by €12.
This is not enough to insulate the most vulnerable from unprecedented inflationary price shocks.
The Government announced a €500 one-off costof-disability payment in its budget, which I believe is completely misjudged and insulting.
We advocated for a €20 weekly Cost-of-Disability payment, amounting to €1,040 over the course of a year. We also put forward reforms to increase the capitation rate to eliminate the need for so-called “Voluntary Contributions”; as well as permanently eliminating School Transport Scheme fees.