Budget 2023 Summary

Budget 2023 was due to be announced on Tuesday, October 11th 2022 – but it was brought forward to Tuesday, September 27th 2022 at 1pm.

Summary of Budget 2023

A major focus of Budget 2023 was to help people with the increases in the cost-of-living.
Average inflation in Ireland is expected to be 7.1 per cent in 2022 before easing back to
4.0 per cent in 2023.


Help With Increased Energy Prices

  • There will be a double weekly payment of all weekly welfare benefits and state pensions in October 2022. This is being called the “Autumn Cost of Living Double Payment”. The extra payment will be made in the week beginning October 17th .
  • There will be a credit of €600 on all household electricity bills. It will be three separate credits of €200 in November , January and March.
  • A double payment of the children’s allowance payment will be made on November 1st 2022
  • All fuel allowance claimants will get a one-off lump sum of €400 on 14th November 2022.
  • Living Alone Allowance claimants will get a one off lump sum of €200 on November 14th.
  • Working Family Payment claimants will get a €500 lump sum on November 14th
  • A lump sum of €500 for those on the carers’ support grant , disability allowances, invalidity pension and the blind pension. (Due November 21st 2022)

  • The means test threshold for the Fuel Allowance will increase from €120 to €200 for those under 70 in January 2023.

There will be a new means test disregard for Fuel Allowance for those aged over 70 . ( €500
per week for a single person, and €1,000 per week for a couple .)
More here about qualifying for Fuel Allowance

The current fuel excise tax cuts and the reduced Vat rate for electricity, are to be extended until Feb 2023

A new Temporary Business Energy Support Scheme will be set up – it is expected to cover 40 per cent of the increase in electricity or gas bills, up to a maximum of €10,000 per month per business.


Childcare

All families accessing registered early learning and childcare will receive a minimum hourly National Childcare Scheme (NCS) subsidy of €1.40 towards the early learning and childcare costs. (From Jan 2023).


With the current minimum hourly NCS subsidy set at €0.50 per hour, this represents an additional €0.90 per hour reduction in the cost of early learning and childcare. This translates to a maximum €63 reduction in parents’ weekly bill per child. With up to €22.50 currently available per week, this represents up to an additional €40.50 reduction in weekly costs.



Social Welfare


Weekly welfare rates and State Pensions are to increase by €12 in January 2023

There will be a €2 increase in the weekly rate for a Qualified Child (Applies to all Welfare Benefits) in Jan 2023

Working Family Payment threshold will increase by €40 in January 2023

€20 increase in the domiciliary care allowance for sick children – January 1st 2023


There will be a double weekly payment of all weekly welfare benefits and state pensions in October .


The regular Christmas Bonus for pensioners and welfare recipients is also confirmed as 100% again at the start of December 2022.



Taxation

An increase of €3,200 in the income tax standard rate cut-off point for all earners, from €36,800 to €40,000 for single individuals and from €45,800 to €49,000 for married couples / civil partners with one earner.

An increase of €75 in the Personal Tax Credit from €1,700 to €1,775
An increase of €75 in the Employee Tax Credit from €1,700 to €1,775
An increase of €75 in the Earned Income Credit from €1,700 to €1,775
An increase of €100 in the Home Carer Tax Credit from €1,600 to €1,700

Tax changes will mean that Take home pay for a single earner will rise by a maximum of €790 a year and €865 for a couple.

USC increase to the 2% rate band ceiling from €21,295 to €22,920

The reduced rate of USC concession for medical card holders is being extended for a further year


The tax-free bonus amount an employer can give an employee will be increased from €500 to €1,000 annually.

Help to Buy Scheme extended to 31 Dec 2024

€0.50 increase on pack of 20 cigarettes


Vacant Homes Tax

A Vacant Homes Tax (VHT) will be introduced in 2023. The tax will apply to residential properties which are occupied for less than thirty days in a twelve-month period.

The tax will be charged at a rate equal to three times the property’s existing base Local Property Tax liability.

There will be a number of exemptions to ensure property owners are not unfairly charged for temporary
vacancies arising from genuine reasons. This will include properties recently sold or currently listed for sale or rent; properties vacant due to the occupier’s illness or long-term care; and properties vacant as a result of significant refurbishment work.

Tax relief for Landlords and Renters

A new €500 tax credit for private tenants who are not in receipt of other State housing supports. The credit will be claimable “in year” in 2023 and in subsequent years and from early in 2023 in respect of rent paid in 2022.

An increase in the eligible expenditure limit for pre-letting expenses for landlords from €5000 to €10,000. (Jan 2023)


VAT

Changes to VAT Rates from Jan 1st 2023

VAT rate for newspapers and news periodicals, including digital editions reduced from 9% to Zero

VAT rate for Automatic External Defibrillators reduced from 23% to Zero

VAT on period products reduced from 9% to Zero

Application of a zero VAT rate for all non-oral Hormone Replacement Therapy and for all non-oral Nicotine Replacement Therapy

The 9% VAT rate was previously introduced for gas and electricity on 1 May 2022 and is due to
expire on 31 October 2022. This rate has now been extended to 28 February 2023

Carbon Tax


The Carbon Tax rate will increase from the current rate of €41 to €48.50 per tonne of CO2.

This will apply to auto fuels with effect from 12 October 2022 and all other fuels from 1 May 2023.

However – The impact of the carbon tax increase on auto-fuels will be offset with a reduction in the National Oil
Reserves Agency (NORA) levy from 2 cent per litre to 0 cent per litre.


Education

A once-off double monthly payment for those in receipt of the SUSI maintenance grant. (Due Dec 16th)

Third-level fees to be reduced by €1,000 (Just in 2022) – payable before the end of 2022. Students need to give their bank details to their college by 30 November to get a refund if they have overpaid.

It looks like there will be free schoolbooks at primary level from September next year,


Health

All inpatient hospital charges will be abolished . (Currently €80 a night capped at €800 a year.)

GP visit cards will be provided to those on or below the median income

The Drug Payment Scheme threshold will remain at the lower rate of €80 in 2023