Budget 2023: Here's what we know of the everyday changes following the Budget announcement

The Budget 2023 has been announced today, Tuesday, and there are plenty of day to day changes following the confirmation of its details - explained and discussed by Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath.

Minister for Finance Paschal Donohoe has said #Budget2023 'is and must be a cost of living Budget' focused on helping people deal with rising prices | Follow live updates: https://t.co/jCVQKngf5n pic.twitter.com/GLPpPh7PpJ

— RTÉ News (@rtenews) September 27, 2022

Budget 2023, which will tackle the cost of living crisis, will total €11 billion with €4.1 billion towards one-off cost of living measures accompanied by budgetary measures for 2023 worth €6.9 billion.

Here are some of the important changes announced in Budget 2023:

Welfare payments and supports

Social welfare payments will increase by €12 with recipients also receiving a Christmas bonus payment in early December with separate double payment of weekly rates in November.

There will be a new €500 tax credit for property renters.

Temporary Business Energy Support Scheme to help businesses with energy costs.

Electricity credits totalling €600 over the next three billing months - November, January and March.

The home carer tax credit will rise by €100 to support stay-at-home parents.

Once-off payment of €500 for people living with disabilities.

25% reduction in weekly childcare fees, worth up to €2,106.

€400 lump sum payment for Fuel Allowance (Paid before Christmas).

Students

Once-off €1,000 reduction in student contribution for an eligible student.

Once-off double monthly payment of SUSI maintenance grant and a 10-14% increase in student SUSI grant from September.

Free School Books Scheme for primary school pupils from September.

Wages

The standard rate cut-off point will increase by €32,000 to €40,000.

The main tax credits (personal, employee and earned income credit) will increase by €75.

Increase in the second USC rate band (2% rate) from €21,295 to €22,920.

Tax-free bonus increase - €500 to €1,000 annually.

Cigarettes

Excise on pack of 20 cigarettes increased by 50c.

HRT and nicotine replacement products to become VAT-free.

During the Budget 2023 announcement, Mr Donohoe said: “If you are an older person, you are having to spend more of your pension on heating your home; if you are looking after a family, you are facing higher grocery bills; if you are running a small business, you are trying to cope with increases in the cost of energy.

“This is why, Budget 2023, presented by Minister (Michael) McGrath and I today, is and must be a cost-of-living budget, focused on helping individuals, families and businesses to deal with rising prices."