Brian Stanley (Laois-Offaly, Sinn Fein)
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115. To ask the Minister for Finance if he will introduce a refundable tax credit equivalent to one month’s rent for struggling renters in budget 2023 in light of deepening unaffordability in the rental sector; and if he will make a statement on the matter. [47356/22]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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156. To ask the Minister for Finance his views on whether the new renter's tax credit is adequate to support renters given the extraordinarily high level of rents; if he will ensure all renters can avail of this credit; and if he will make a statement on the matter. [55853/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 115 and 156 together.

In my Budget 2023 address on 27 September last, I acknowledged the challenges that the Government faces in relation to housing. I also acknowledged that too many people are paying too much of their income in rent. As part of the response, I announced a new €500 Rent Tax Credit to assist renters, specifically those who do not receive other housing supports from the State. The credit will apply for 2023 and subsequent tax years to end 2025. However, it is not only being introduced in respect of future years; it will also be available in respect of 2022. In addition, between Budget day and the publication of the Finance Bill, I decided that the application of the credit would be broadened so that it would also be available in certain circumstances to parents who pay rent on behalf of their student child in third-level education.

A minimum amount of €2,500 rent must be paid to fully avail of the support.

In addition, the tax credit will be non-refundable. A person must pay income tax to avail of same and there is no intention to depart from this principle. In the case of a single person, the amount of tax that must be paid to fully avail of the relief is €3,900 in 2022 and €4,050 in 2023.

The new credit is estimated to cost about €200 million for each year that it operates. This is a very significant amount of expenditure within the tax system. It represents a proportionate response within the limits of what was available in the context of the overall Budget 2023 arithmetic.

The Government's Housing for All strategy is intended to deliver more homes of all types for people with different housing needs, including those who wish to rent at an affordable price.

The most recent Housing for All Action Plan Update and Q3 Progress Report published last week by the Department of the Taoiseach indicates that while there are challenges, in particular from cost pressure due to the war in Ukraine, the plan is working. It also states that housing supply is increasing and that the Government fully expects to meet its 2022 delivery target of 24,600 homes noting that more homes are expected to be built this year than in any year since 2009. Additional supply will help to moderate housing costs in both the purchase and rental sectors.