The Irish Budget 2023, announced on September 27, 2022, was focused on addressing the ongoing cost-of-living crisis and economic recovery post-pandemic. Here are the main highlights:
Cost of Living Supports
Energy Credits: Households received a total of €600 in electricity credits, paid in three installments of €200 each.
Social Welfare: Most weekly social welfare payments, including pensions, were increased by €12 per week starting January 2023. A double payment of all weekly welfare benefits, commonly referred to as the "Christmas Bonus," was also provided.
Fuel Allowance: An additional lump sum payment of €400 was made to those eligible for the Fuel Allowance.
Taxation
Income Tax: The standard rate income tax band was increased by €3,200, meaning individuals started paying the higher rate of tax on earnings over €40,000. The personal tax credit, employee tax credit, and earned income credit each increased by €75.
VAT: The reduced 9% VAT rate for the hospitality sector was extended until February 2023.
Housing
Help-to-Buy Scheme: This scheme was extended until the end of 2024, allowing first-time buyers to claim up to €30,000 in tax rebates.
Rent Tax Credit: Renters received a tax credit of €500 per person, which could be claimed for both 2022 and 2023.
Education and Childcare
Free School Books: A new initiative provided free schoolbooks for all primary school children starting in the 2023/2024 school year.
Childcare: Funding was allocated to reduce childcare costs by 25% through increased subsidies.
Health
Hospital Charges: The daily hospital inpatient charge of €80 was abolished.
Free GP Care: Free GP care was extended to children aged six and seven, with a plan to further extend this to children up to the age of 12.
Pensions and Elderly Support
Pensions: The State pension increased by €12 per week.
Living Alone Allowance: An additional €200 lump sum payment was made to those receiving the Living Alone Allowance.
Climate and Environment
Carbon Tax: The carbon tax increased by €7.50 per tonne of CO2, bringing it to €48.50 per tonne. However, measures were taken to offset the impact on households through energy credits and social welfare payments.
The 2023 budget was one of the largest in Irish history, reflecting the government's effort to mitigate the impact of rising inflation and energy costs while also continuing to invest in public services and infrastructure