Minister for Finance Paschal Donohoe presented Budget 2022 on Tuesday as the government attempts to adapt to the rising cost of living.
A €4.7bn Budget package has been announced as Ireland begins to emerge from the Covid-19 pandemic.
Minister Donohoe announced that over 400,000 jobs will be added to the Irish economy over the next year, with employment rates expected to surpass pre-pandemic employment levels.
Here are 10 things you need to know:
Welfare and pensions
· There will be a €5 increase in fuel allowance to take effect immediately
· There will also be a €5 increase for pensioners, jobseekers and other welfare recipients from January.
· A double payment for those receiving benefits will be given in the weeks before Christmas as a bonus.
· The back-to-school allowance will increase by €10, and the carers’ allowance will increase by €5. More carers will qualify for payments as savings of up to €50,000 will be disregarded in means-testing.
Income taxes and work
· Tax credits will be indexed, and bands will offset the impact of inflation on people's takehome pay.
· There will be a deduction in Income tax of 30 per cent of the cost of expenses for heat, electricity and broadband in respect of costs suffered by people working from home.
· The minimum wage will see a further increase this year of 30 cents.
Housing
· The help to buy scheme will be extended for 2022, with a review to be carried out as the year continues.
Health
· The government has allocated €200 million in an attempt to tackle long waiting lists.
· Free GP care for children will also be extended to cover children aged six and seven.
· Free contraception will be offered to women aged 17 to 25 as part of a €10 million package.
Climate
· Those aged 19 to 23 can avail of a 50 per cent reduction in all public transport costs.
· The carbon tax will rise €7.50 per tonne, resulting in approximately €1.28 extra on a 60-litre tank of petrol and €1.48 more for a fill of diesel.
· The exemption on VRT for electric cars will be extended until the end of 2023 to encourage people to buy electric vehicles.
Cigarettes and alcohol
· The cost of a pack of 20 cigarettes will see an increase of 50 cents.
· Alcohol will remain the same.
Arts
· A €100 million recovery package has been announced to aid the recovery of festivals and nightlife activities.
· There will also be a €25 million fund to help venues hold events as they reopen towards the end of this month.
· The reduced VAT rate for the hospitality sector will remain at 9 per cent until the end of August 2022.
Education
· There will be an extra 980 teachers and 1,165 special needs assistants introduced into special education.
· The student maintenance grants received by more than 60,000 people in higher education are due to increase by €200 from next year.
Childcare
· An extra two weeks will be added to parental leave from next August, bringing it from 5 weeks to 7.
· Package of €100 million allocated to child care for next year, which may rise to €200 million annually once ramped up
Business
· The employment Wage Subsidy Scheme (EWSS) will be extended until April 30 th .
· A new tax credit for the digital gaming sector will be introduced.
