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Irish Mirror
Irish Mirror
National
Cillian O'Brien

Budget 2021 Ireland: Full list of major changes expected to PUP, carbon tax and fuel prices

Cuts to the Pandemic Unemployment Payment for hundreds of thousands who have lost their jobs in the coronavirus crisis are unlikely to be restored in the budget.

The Government has been under pressure to restore the payment to its original €350 after it was reduced in July.

Finance Minister Paschal Donohoe is expected to announce up to €9 billion for social welfare on Tuesday.

The Government's financial plan will not see any rise in income tax and a VAT reduction from 13% down to 9% is also likely, in a bid to boost the battered hospitality sector.

Minister for Finance Paschal Donohoe (Leah Farrell / RollingNews.ie)

Smokers are likely to see a rise in the price of ciggies, but a hike in alcohol is less clear given the suffering in the pub trade in recent months. 

Labour's social protection spokesperson Seán Sherlock has called for a commitment to pay the social welfare double Christmas bonus and the reinstatement of four extra weeks of fuel allowance.

He said: "One of the consequences of Covid-19 is that people are spending more time at home and this is leading to much higher heating costs and electricity bills.

"The Government has to acknowledge that in the budget.  

“While we had called for it to be rounded up by €5.50 to €40 a week reports indicate today that it would be increased by €3.50.

“Earlier this year four extra weeks of fuel allowance were paid as part of the 2019/2020 fuel allowance season so it is essential that level of support is also restored."

The 200,000 old and vulnerable people who receive the living alone allowance are set to receive a €5 increase per week in this year's budget, The Irish Independent reported.

The weekly payment is expected to jump from €14 to €19.

But the carbon tax is set to rise, adding €1.28 to the cost of a 60-litre tank of petrol or €1.47 to the same amount of diesel.

A lifeline to the live entertainment sector is also proposed with a grant scheme expected in.  

A commercial rates waiver in place to help businesses could also be extended to April next year.

The Government expects to run a budget deficit this year of just over €21 billion or 6% of GDP.

The figures are contained in the White Paper, which lays out the public finances ahead of any decisions that may be taken in next week's Budget.

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