The Irish Budget 2022, presented on October 12, 2021, was aimed at supporting the economy's recovery post-COVID-19 while addressing various social and environmental issues. Here are the key points:
Cost of Living and Social Welfare
Social Welfare Increases: Weekly payments, including pensions, were increased by €5. Additionally, the Fuel Allowance was increased by €5 per week, and the income threshold for eligibility was raised.
Christmas Bonus: The traditional double payment of all weekly social welfare benefits was continued for 2022.
Minimum Wage: The national minimum wage was increased by 30 cents, bringing it to €10.50 per hour.
Taxation
Income Tax: The standard rate income tax band was increased by €1,500, meaning people started paying the higher rate of tax at a higher income level. Personal tax credits, as well as employee and earned income credits, were each increased by €50.
Universal Social Charge (USC): The ceiling for the 2% USC rate was increased to ensure that those earning just above the minimum wage would not pay the higher USC rate.
Housing
Help-to-Buy Scheme: The Help-to-Buy scheme was extended until the end of 2022, with no changes to the existing structure, which allowed first-time buyers to claim up to €30,000 in tax rebates.
Housing Assistance Payment (HAP): Increased funding was allocated to the Housing Assistance Payment scheme to support those in the private rental sector.
Health
Healthcare Funding: Significant additional funding was allocated to the health sector, including funding for over 8,000 new healthcare workers and the continuation of COVID-19 related measures.
Free GP Care: The threshold for free GP care was lowered to include more children under the age of 8 and those with long-term illnesses.
Climate and Environment
Carbon Tax: The carbon tax increased by €7.50 per tonne of CO2, bringing the total to €41 per tonne. The increased tax was part of Ireland’s ongoing commitment to reaching its climate targets.
Electric Vehicles: Continued support was provided for the transition to electric vehicles, including grants for purchasing electric cars and extending VRT relief.
Education
Education Funding: The education sector received a boost with additional funding for hiring more teachers and special needs assistants (SNAs), as well as the introduction of free school books for DEIS (Delivering Equality of Opportunity in Schools) schools.
Student Grants: The SUSI grant maintenance payment was increased by €200, and the income threshold for grant eligibility was widened.
Childcare
National Childcare Scheme: Increased funding was provided to reduce the cost of childcare for families through the National Childcare Scheme.
The Budget 2022 was framed to balance immediate needs due to the pandemic and long-term goals, particularly in housing, health, and climate action