Laois Minister says Budget will alleviate pressure on households

Minister of State at the Department of Finance, Sean Fleming says Budget 2023 was designed to alleviate pressure on households. 

Minister Fleming, who has responsibility for Financial Services, Credit Unions and Insurance, told the Dail that “Budget 2023’s strategy puts people and their quality of lives first.”  

He outlined the full range of supports being provided in the Budget and said €4.1 billion of the €11 billion package will be once off measures given the urgency of the situation facing households. 

In terms of energy, he said: “Ireland aims to be part of an EU-wide response on capturing the windfall gains of energy companies to high energy prices. If this is not possible, this government take action on our own.”

Read Minister Flemings full Dáil speech on Budget 2023 from Wednesday, September 28 below: 

Budget 2023 amounts to a €11bn package. The core Budget 2023 of €6.9 billion – €5.8 billion in expenditure and €1.1 billion tax. Given the urgency of the challenge which we face, €4.1 billion of the overall package will be once off measures to help people this year.

The Government is not borrowing any money to fund this Budget. These new measures are only possible due to the strong growth and tax receipts experienced in the economy over 2022 and our good management of the economy in recent years.

Budget 2023’s strategy puts people and their quality of lives first. Globally inflation has hit its highest level in decades. We know that people are finding it very difficult to make ends meet and this Budget is designed to alleviate pressure on households and exposed sectors of the economy.

In terms of supports for households who are struggling, Budget 2023 contains a series of once-off and permanent supports to assist them at this time.

Supports

There will be a broad range of measures that support households on both low and middle incomes. The Government is providing for electricity credits for all households totalling €600 to be paid in three instalments of €200; the first payment will be made in November, with two further instalments in the New Year.

A €400 Lump Sum payment to all households receiving the Fuel Allowance payment in November.

There will also be across-the-board welfare increases in weekly payments of €12 from January 2023. A double week once off payment for social welfare recipients will be given before Christmas. There will also be a once-off payment before Christmas of €200 to recipients of the Living Alone Allowance.

For example, older people living on their own will get an additional €2,375 from the combination of measures announced, between now and the end of next year.

There will be a reduction of up to 25% in the weekly fee in childcare costs. This measure will put, up to €175 a month or €2,106 a year, back in the pockets of parents next year. In November, we will also make a double Child Benefit payment. This is worth €140 per child in addition to the normal monthly payment.

To support low income working households, we are providing for an additional lump payment of €500 to those in receipt of the Working Family Payment. This will be payable in November.

Budget 2023 will see funding for free school books for all pupils in primary schools from September next year. This will reduce back to school costs for parents.

There was also a large income tax package in Budget 2023. This means a married couple each on €30,000, will save a combined total of €532 next year.

Renters will be able to avail of two tax credits in 2023. The new rent tax credit valued at €500 per year for every person renting. This measure, aimed at those who do not get any other housing supports, will apply for 2023 and subsequent tax years but the Government is providing that it may also be claimed in respect of rent paid in 2022.

This government has prioritised Education in 2023. There will be a reduction in the staffing schedule by 1 point for all primary schools, which is the lowest in the history of the State, providing 370 additional teacher posts.

Budget 2023 will deliver an additional 686 special education teachers, and an additional 1,194 SNAs coming on stream in 2023, for the first time ever we will have over 19,000 teachers working in the area of special education and over 20,000 special needs assistants

To support students and their families, there will be a once-off reduction in the Student Contribution of €1,000 for eligible students in the 2022-2023 education year, and a once-off double monthly payment for those in receipt of the SUSI maintenance grant.

There will also be a €1,000 increase to the postgraduate tuition fee contribution grant.

The Government is extending the 20% public transport fare reduction and the Youth Travel Card discount of 50% on all operators’ services to end 2023.

To acknowledge the additional costs that carers – who provide invaluable support - are incurring at this time, we will be making a payment of €500 to those who qualify for the Carer's Support Grant in November.

The Government is introducing a Temporary Business Energy Support Scheme to assist businesses with their energy cost over the winter months.

If the increase in average unit price is more than 50 per cent, the business will be able to access the scheme. The support will be calculated on the basis of 40 per cent of the amount of the increase in the bill amount.

Ireland aims to be part of an EU-wide response on capturing the windfall gains of energy companies to high energy prices. If this is not possible, this government take action on our own.

Newspapers and defibrillators will have the VAT moved 9 per cent to zero from the 1st of January 2023.

To keep our streets safe, there will be an additional 1,000 Gardaí and over 400 civilian staff recruited. The civilian staff will free up Gardaí on administrative work for frontline policing.

To conclude, the Government’s decisive response in Budget 2023 will help to mitigate the impact of inflationary pressures on vulnerable households and businesses.

The cost of living budget provides much needed supports over the final months of this year and into next year.