Fine Gael - Pascal Donohoe - Fianna Fail - Michael McGrath

Budget 2022: A Breakdown Of Spending Plans

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The government have set out their stall for spending plans in 2022.

The Minister for Finace Paschal Donohoe and his colleague, the Minister for Public Expenditure Michael McGrath have announced a budget package worth €4.7bn.

That will mean a breakdown in expenditure of €4.2bn, with €500m worth of tax measures.

: Budget 2022 – Broken down :

Welfare

  • A €5 weekly increase for all social welfare recipients
  • The weekly fuel allowance is to increase by €5 from tonight
  • The Christmas bonus will be paid in full for 2021
  • The State pension will increase by €5
  • An extra €3 will be added to the Living Alone Allowance
  • More carers will qualify for payments in the first major reform of the Allowance in over a decade
  • The Carers Allowance will also increase by €5
  • A COVID-19 contingency fund is being created and includes €500m for testing and tracing, a vaccine booster campaign and PPE
  • Employer Wage Subsidy Scheme extended in a graduated form until April 30th 2022
    – No change to the scheme in October and November
    – In December, January and February, a two-rate structure of €151.50 and €203 will apply
    – In March and April 2022 a flat rate of €100 will be in place – reduced employers PRSI to no longer apply
    – Scheme closes to new entrants from January 2022
  • The earnings limit on Disability Allowance will rise from €350 to €375

Parents and families

  • The Back to School Allowance will go up by €10
  • Parents Benefit to increase to seven weeks from July next year
  • Plans to freeze childcare fees have been unveiled
  • Free GP care will be given to children aged six and seven – with plans to extend it to those up to 12 years
  • New funding stream for 4,700 childcare providers from September 2022
  • Maternity benefit and parental leave payments will go up by €5 a week
  • The pupil-teacher ratio in primary schools will be reduced by one point

Taxes

  • The lower tax band of €35,300 will rise by €1,500
  • A 2% rise in the personal tax credit
  • The ceiling for the second band of USC is rising to €21,295
  • The USC exemption for medical card holders and those over-70, earning less than €60,000, stays in place
  • Carbon tax will rise by €7.50 per tonne – increasing the price of natural gas, bag of coal and bale of briquettes
  • The cost of a full tank of petrol will go up by €1.28 and the diesel will go up by €1.50
  • The VRT exemption for Battery Electric Vehicles is to be extended to the end of 2023
  • A revised motor tax system from January will see:
    1% increase in VRT for bands 9-12
    2% increase for bands 13-15
    4% increase for bands 16-20
  • Reduced VAT rate of 9% for hospitality sector will remain in place until August 2022

Cost of living

  • The minimum wage is rising by 30c to €10.50 an hour
  • The price of alcohol will be unchanged – 50 cent will be added to the cost of a pack of cigarettes from midnight
  • A pilot scheme is being introduced to provide a basic income for artists
  • The live events sector is to get €25m in support
  • Working from Home Employees can claim back 30% of vouched expenses for heat, electricity and broadband for working from home
  •  €25m for a new Youth Travel Card, which will see 50% discount on public transport for those aged 19-23

Health

  • Core health spending is to increase by €1bn, to a record €20.38bn
  • 8,000 new posts to be created across the health system
  • Free contraceptives for women aged 17-25 from next August
  • There is a €250m package to shorten waiting lists
  • €105m for disability services – the rate of Wage Subsidy Scheme for disabilities will rise by €1 a week
  • A package on domestic and sexual violence, including extension of legal aid for victims and funding awareness campaigns

Work

  • 1,000 extra nurses are to be recruited
  • An extra 800 Gardaí will be hired and 400 civilian staff
  • There is will be a 20% increase in the Garda Mountain Bike Unit
  • An extra 980 teachers and 1,165 new Special Needs Assistants (SNAs) to be taken on
  • €6.7m for a Youth Justice Strategy to tackle anti-social behaviour

Housing

  • An extra €194m for homeless services
  • €202 is to be spent on retrofitting homes, which will support 22,000 energy upgrades
  • The Help-To-Buy scheme will be retained for 2022 at current rates with a ‘full review’ next year
  • A Zoned Land Tax to encourage the use of land for building homes – this will apply to land zoned suitable but undeveloped
  • New mica redress scheme to be announced ‘in coming weeks’