Among the latest hints given to the public on changes expected in Budget 2022, is a tax-free voucher for front line workers, another Bank Holiday, and an update on the pricing of cigarettes and alcohol.
The option for a tax-free voucher of up to €500, along with an extra Bank Holiday, is being considered as a reward for the efforts of frontline workers during the pandemic.
According to reports, the voucher system could be considered for teachers too after the union spoke out demanding to be part of the pandemic bonus.
An additional payment or paid leave, as well as tax credits, are also on the table.
Elsewhere, the price of alcohol will unlikely be hit in the upcoming Budget, and while no official decisions have been made for the price of cigarettes, there have been suggestions that the pressure on pubs and restaurants during the pandemic could be helped by increasing the cost of both.
The date of the budget is fast approaching on October 12, so here are the rest of the changes that have been previously hinted at:
PUP bonus
Those who were impacted by the Covid-19 pandemic will see a bonus from Budget 2022, according to Leo Varadkar who said the government wants to “ensure workers aren’t left short and employers aren’t burdened with heavy costs.”
Those who have been claiming PUP or other social welfare payments because of the pandemic will see up to €1,860 “to compensate for the reckonable service that you have lost due to no fault of your own."
Wage increase
Tánaiste Leo Varadkar told the Dáil recently that an increase to the current minimum wage is needed as the cost of living continues to rise.
This may be reflected in both wages for workers and social welfare rates.
Mr. Varadkar said we need “increases in pensions and social welfare so that people can keep up with the rise in the cost of living.”
The national minimum wage is currently at €10.20 but it has yet to be hinted how much wages will go up in this year’s budget.
The Group that estimates the cost of living in Ireland has increased its predictions by 60c to €12.90 for 2022, in reflection of how much each person would need to earn to afford the basics.
Fuel allowance
Minister Eamon Ryan said the Government would be looking to support those struggling to pay their bills as energy costs continue to rise.
Payments for 2021/2022 began this week and were launched by Minister Heather Humphreys who said; “The Fuel Allowance plays a vital role in assisting tens of thousands of households with their heating costs over the winter months.
“In recognition of its importance to so many families, I increased the weekly rate of payment by €3.50 in my first Budget as Social Protection Minister.”
Tax breaks for pensioners and fixed earners
Leo Varadkar has also indicated that an increase could be on the cards for pensioners and those living on a fixed wage.
“One thing I do feel very strongly about is that we do need a welfare package in this Budget because we see the return to inflation and the cost of living is now rising,” he told Morning Ireland.
“Pensioners and people on fixed incomes haven't seen an increase in two years now.
“If they don't get an increase, actually their living standards will fall and as a party that believes in a just society, we can't stand over that. We're also a party that believes in rewarding work."
PRSI
It was previously hinted that further changes to employer PRSI would be unlikely after Varadkar said they could only be justified to improve benefits or to fund affordable healthcare, childcare, or higher education.
The Tanaiste said: "A legacy of the pandemic will be a larger State. As pro-business and pro-enterprise advocates we need to shape what that bigger State will look like.
"A larger State does not necessarily mean more taxes. Not when you have growth in employment, business and wealth.
Corporation Tax
In relation to corporation tax, the Tanaiste said that increases to the current rates are unlikely because if we were to move away from Ireland’s industrial policy framework - which includes a stable and low rate of corporation tax - "we would need to be certain about what we are being asked to agree and implement.
"For many jurisdictions, there are only benefits and no costs to signing up for corporate tax reform, the opposite is the case in Ireland as there will be Exchequer implications and an adverse impact on our competitiveness."
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