Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Once again, we stand to deliver a budget against an extraordinary backdrop of uncertainty and challenge.

INTRODUCTION

We know that many of our people are finding it very difficult to make ends meet, face difficult choices in their daily lives and are seeing their household bills rise, seemingly by the day. We know that many are genuinely worried about what lies ahead in the months to come. We know too that many of our businesses that survived Covid, with the support of Government, now face a new and serious threat in the form of dramatic energy price rises.

Our experience over the last three years, and the manner in which we collectively responded, demonstrates our resilience as a nation. We continue to navigate the uncertainties of Brexit and we got through the long, dark days of Covid.

We are responding with compassion and resolve to the dreadful invasion of Ukraine. We are doing this together, both here in Ireland and in co-operation with our international partners. These are not normal times. The war in Ukraine continues to have far-reaching ramifications across so many areas of life as we know it. We have not experienced inflation like this for 40 years. Broad-based inflation, such as what we are currently experiencing, impacts negatively on living standards across the board and requires a carefully balanced response. At times such as this, people understandably look to their Government for direction, for reassurance and for meaningful help. Today, we are responding. This is a budget for its time, a budget that seeks to respond with unprecedented resources, with a breadth of measures and with a speed of execution we have not seen before. We do not suggest that this budget will meet every need. That would not be possible. It is in everyone’s interests that our national finances are managed carefully and that we guard against current and future risks, but this budget will make a difference, and people will see that difference quickly.

We should not forget that the scale of response we are bringing forward today is possible only because of the strong and swift rebound in our economy and our public finances. We should never put at risk or take for granted the pro-enterprise policies that underpin Ireland’s economic success.

RESPONDING TO COST OF LIVING CHALLENGES

This Government has proactively responded throughout the past 12 months with a range of tax and spending measures, totalling €3 billion, to alleviate pressure on households and exposed sectors of our economy. Today, the Minister for Finance, Deputy Donohoe, and I are announcing further winter cost-of-living, business and public service support measures totalling €4.4 billion, comprising €1.7 billion to be administered through the tax system, and €2.7 billion of spending measures, with €300 million of this amount being funded from the contingency reserve. This is in addition to a core budget 2023 package of €6.9 billion; €5.8 billion in expenditure and €1.1 billion in tax.

The expenditure measures I outline today are threefold. They comprise immediate assistance for individual households and businesses; a package of support for public services, sports clubs, community and voluntary organisations to be provided this year to help with energy and other costs; and a comprehensive range of new measures for 2023.

Turning first to the measures to be implemented this year, every household is impacted by rising energy prices and, in addition to targeted measures, we believe it is important that we provide a level of support to all households. I am providing for electricity credits for all households totalling €600 to be paid in three instalments of €200. The first payment will be made before Christmas with two further instalments in the new year. The total cost of this measure is €1.2 billion. To provide further assistance with energy bills to the most vulnerable, in addition to the normal weekly fuel allowance payment, a lump sum payment of €400 will be made before Christmas to recipients of the fuel allowance. To support those in receipt of a weekly social welfare payment, I am providing for a once-off double week cost-of-living support payment to all qualifying social protection recipients. This will be paid in October and will include pensioners, carers, people on disability payments and jobseekers. I can confirm to the House that the normal Christmas bonus will be paid in early December.

To support low-income working households, I am providing for an additional lump payment of €500 to those in receipt of the working family payment. This will be payable in November. Also, in November, we will make a double child benefit payment to all qualifying households. This is worth €140 per child in addition to the normal monthly payment.

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