Three key changes from Budget 2022 that begin at midnight with cigarettes and fuel on the up
Minister for Finance Paschal Donohoe announced Ireland’s budget 2022 today, which included changes to income tax rates, an increase in social welfare payments and a 30 cent increase to minimum wage.
The following changes will come into effect as soon as tomorrow:
1. The cost of a packet of cigarettes will go up by 50c, making the cost per pack a total of €15 from tomorrow.
2. Petrol and diesel will also go up in price by approximately 2c and 2.5c. This adds a cost of €1.28 to a 60-litre tank of petrol and €1.48 a fill of diesel.
3. A €5 increase in the fuel allowance will come into effect from midnight, bringing it to a total of €33 per week.
From January 2022, the following will come into effect:
1. The minimum wage will rise 30c to €10.50 per hour.
2. Pensioners will see their weekly welfare payments by up to €13. In addition, the state pension is set to increase by €5 to €253.30, while the Living Alone Allowance will increase by €3 to €22 from the beginning of January.
3. All social welfare recipients will see an increase of €5 per week and will receive a Christmas bonus in the weeks before December 25.
4. Young people up until 23 years of age will receive 50 per cent off the price of tickets for all public transport.
5. Free GP care will be extended to covered children up to the age of seven.
6. Free contraception will be introduced for women aged 17 to 25.
7. A 2 per cent rise in the personal tax credit, employment tax credit and earned income credit for self-employed people will come into effect in January. The changes in the tax system will mean someone earning €40,000 a year will see their taxes fall by around €435 a year.
8. The threshold for the Drug Refund Scheme will also be lowered from €114 to €100.
From May 2022, the following will come into effect:
1. All fuel excluding diesel and petrol will go up from May.
2. Coal and peat will also be more expensive, with a 40kg bag going up by 89c more and a 12.5kg of briquettes costing an extra 20c.