Dáil debates

Tuesday, 4 October 2022

Ceisteanna Eile - Other Questions

Budget 2023

11:30 pm

Photo of Neale RichmondNeale Richmond (Dublin Rathdown, Fine Gael)
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91. To ask the Minister for Public Expenditure and Reform if he will outline the cost-of-living supports announced in Budget 2023; and if he will make a statement on the matter. [48325/22]

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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I commend the Minister for Public Expenditure and Reform, Deputy Michael McGrath, and the Minister for Finance, Deputy Donohoe, on the €11 billion cost-of-living budget. I believe last week's budget achieved the right balance between helping people in the short term and planning for an uncertain future.

Will the Minister of State summarise the main cost of living supports within budget 2023?

11:40 pm

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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It is Question No. 91 in the name of Deputy Richmond. We had a forewarning.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I thank Deputy Dillon for raising this question. Budget 2023 contains a significant response to support households, public and community services and businesses, with spending measures of some €4.5 billion in aggregate. The Government announced a €2.2 billion winter cost-of-living package for households, including a double week of social welfare schemes in October, a fuel allowance lump sum of €400, a once-off payment of €500 to those in receipt of carer's support grant and to people on disability allowance, blind pension and invalidity pension, a €200 living alone allowance lump sum, a €500 working family payment lump sum, a double child benefit payment, a once-off reduction in the student contribution fee by €1,000 for undergraduates and one third for apprentices, a €1,000 increase to the postgraduate tuition fee contribution grant, double payments to those eligible for Student Universal Support Ireland, SUSI, maintenance grants, a once-off payment of €500 for Science Foundation Ireland, SFI, and Irish Research Council, IRC, PhD researchers, €8 million for the Student Assistance Fund, and three €200 electricity credits, with two instalments in the new year. In addition, a Christmas bonus will also be paid to eligible social protection recipients in December.

Budget 2023 also includes new core permanent spending measures, focusing on the cost of living, with an estimated value of €1.3 billion, including a €12 weekly social protection rates increase for working age and pension payments and an increase in the universal subsidy on the national childcare scheme.

In recognition of the unprecedented rise in energy bills, the Government is also making available €340 million this year to provide further support to public and community services. In addition, to support businesses, Government is introducing a €200 million Ukraine emergency response scheme to be administered by the Department of Enterprise, Trade and Employment.

While the supports provided are substantial, the Government cannot protect all households and businesses against the full effects of inflation as to do so would lead to further inflationary pressures.

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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It can be simply said that families were the biggest winners in this year's budget, but also that there were a considerable number of measures for young people. Certainly, the once-off reduction in the student contribution of €1,000 for eligible students, the once-off €1,000 increase for the postgraduate fee contributions and a once-off double monthly payment for those in receipt of SUSI maintenance grants were substantial measures, especially for young people and their families. The extension of the 20% public travel fare reduction and the youth travel card discount of 50% on all operated services out to 2023 will certainly support sustainable travel ambitions and assist in achieving our climate targets.

I have one question of clarification. How exactly will the renters' €500 tax credit be put into operation?

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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The rental tax credit will be legislated for in the Finance Bill over the coming weeks. Once the Finance Bill has been passed by both Houses and enacted, I anticipate that individuals will quickly have the opportunity to register and claim the rental tax credit on the PAYE Anytime system, the Revenue's online system. The Minister for Finance, Deputy Donohoe, will outline the details of that.

I am aware particular issues and questions have been raised about the rental tax credit in relation to certain categories of tenants, licence holders etc. The Finance Bill will provide a good opportunity for all of those to be teased out. I know the Deputy and other Members of the House will engage in that process over the weeks ahead.

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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I thank the Minister for his clarification. This budget will make a substantial difference to thousands of households who will benefit from the once-off measures aimed at easing the cost-of-living crisis. The €1.1 billion income tax package will certainly put more money back into people's pockets, with tax savings of €800 a year for single earners and double that for households. Middle-income earners, pensioners and families with young children were among some of the biggest winners in this budget. I commend the Minister's work and that of the Minister, Deputy Donohoe.

Photo of Jennifer Carroll MacNeillJennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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I, too, commend the Minister, Deputy McGrath, on that work. I have a question on the practicalities of the business supports, on which there is a state aid clarification yet to happen. For example, a business in my area, a retail vegetable deli store in my constituency, received a bill for €6,982 for the last 62 days. It had been €1,300 the previous year. He has to pay that within 14 days. Will he be sure he can get some class of refund, and if so, how and when? The practicalities of the business supports offered by Government are just as important, as is providing as much clarity as quickly as possible, and certainly to this gentleman who does not want to go over his 14 days.

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputies. In response to Deputy Dillon, we are conscious that the next number of months will be very tough for many people. Deputy Carroll MacNeill gave an example of a business utility bill. We are seeing them being brought forward as well by households and constituents, who are sharing with us details of the bills they are receiving. What we have done will certainly help to insulate people to some extent, although not entirely and not in every case. We have to be honest about that. We have tried to target as many of the resources as possible to those who need them the most. That was the right thing to do but it does not take away from the challenge and the difficulty that will be there for many over the next few months.

In response to Deputy Carroll MacNeill, the temporary business energy support scheme will be legislated for shortly. It will be backdated to the beginning of September. The expectation is that the benefits of that scheme will begin to flow by way of payments in November. As the Deputy will be aware, the Revenue Commissioners will be directly leading operationally on that particular scheme. I know it cannot come soon enough for many businesses that need it urgently.

Question No. 92 taken with Written Answers.

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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We will not have the full time for Deputy Griffin's question but he will have the 30 seconds and one minute.