After the Budget was announced in October, some of the changes that were announced came into effect immediately. However, others take effect from the beginning of January 2021 or later in 2021.
Here are some of the main changes in taxation, social welfare, health, housing, education, employment and other areas that are due to take place from January 2021.
The following information is obtained from Citizens Information and can be viewed in further detail here.
Vehicle Registration Tax (VRT) and motor tax
New rates tables for VRT and motor tax will be introduced. The CO2-based VRT and motor tax regimes will be replaced with the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) emissions system from January 2021. See 'Transport' below for details of changes to VRT and motor taxes.
Payments to families
The weekly rate for a qualified child will increase by €2 from €36 to €38 for children under 12 years of age. It will increase by €5 from €40 to €45 for children aged 12 years and over (from January 2021).
Working Family Payment income thresholds will increase by €10 per week for families with up to 3 children (from January 2021).
The Widowed or Surviving Civil Partner Grant will increase by €2,000 from €6,000 to €8,000 (from January 2021).
Fuel Allowance
The Fuel Allowance will increase by €3.50 per week from €24.50 to €28 (from January 2021).
Living Alone Increase
The Living Alone Increase will increase by €5 per week from €14 to €19 (from January 2021).
Increase for living on a specified island
The Increase for living on a specified island will increase by €7.30 from €12.70 to €20 per week (from January 2021).
Employment supports
Employers currently pay 11.05% Class A employer PRSI on weekly earnings over €394. This will increase to €398 (from 1 January 2021).
