BUDGET 2023: The Key Points from an expected €11bn package

2.12pm: Several one-off measures have been announced by Minister Michael McGrath:

- Electricity credits of €600 for all households, to be paid in four instalments of €200

- One-off €200 payment to those on Living Alone Allowance

- One-off €500 payment to people on Disability Allowance, Invalidity Pension and Blind Pension

2pm : Key points as Minister Michael McGrath announces public expenditure package

- €400 lump sum for fuel allowance by Christmas

- One-off double week payment to social welfare recipients

- Normal Christmas Bonus to be paid in early December

- Extra €500 lump sum for those on Working Family Payment

- Double Child Benefit payment to be paid in November

- €500 payment for those on Carer's Support Grant

1.50pm Key points as Paschal Donohoe announces Budget 2023

- Higher rate on income tax to start at €40,000, with proportionate increases for married couples and civil partners

- 10% levy introduced on concrete blocks and pouring concrete

- A €500 annual renters' tax credit will be backdated to 2022

- Introduction of a Temporary Business Energy Support Scheme to help businesses with energy costs

- Help-To-Buy scheme for first-time buyers set to continue until the end of 2024 in its current form

- VAT on newspapers reduced to 0%

- Minister says price of petrol and diesel will not go up after today's Budget

1pm:

Television coverage of Budget 2023 has begun on RTÉ One now as David McCullagh and Vivienne Traynor present live coverage and analysis before and after the Budget speech. WATCH HERE

Budget 2023 is due to be announced today, as many households wait in hope that it will include measures to cushion the blow of the ongoing cost of living crisis.

A tax credit for renters and double welfare payments are among the measures expected in Budget 2023, which will be officially unveiled in the Dáil chamber at 1pm on Tuesday

Today’s Budget package will be the biggest giveaway in the history of the State, with the spending review and cost of living package to be worth more than €10 billion.

There is a lot already known – such as a new credit for renters that pay tax, free school books for children in primary school, a doubling of some welfare payments before Christmas, an energy credit worth €600 across three energy bills and a 25% reduction in childcare costs.

This year’s budget will see close to €7bn in additional spending in 2023, and there will be a separate cost of living package announced, worth almost €3bn to the Irish public.

Renters

Tax breaks are expected for renters totalling €1,000 over two years as senior Government figures finalise the budget.

It is understood that tenants are in line for tax relief of €500 this year with another €500 to come in 2023.

Social welfare

All weekly social welfare payments are expected to rise by €12 in the Budget. Recipients will receive the hike in payments from January 2023.

A double payment of the child benefit has been agreed and will be paid before the end of the year.

Carers and people with disabilities are expected to receive a one-off €500 payment.

A double payment of the €253 per week state pension will be paid twice in the coming months – once soon after the Budget and then again in December.

Primary schoolbooks

Minister for Education Norma Foley is believed to have secured free schoolbooks for primary school children as part of this year’s Budget.

Childcare

Childcare costs look set to be reduced by between 20 and 35 per cent on average with fees set to be reduced by up to €170 per month under a deal struck by the coalition parties.

Energy bills

Energy credits to the total value of €600 seem to be a definite in today's Budget.

The universal payments are set to be split across two or three payments on either side of Christmas.

Fuel Allowance

Fuel Allowance is set to be increased and the threshold changed to allow more people to be eligible

Petrol and Diesel Costs

The Government is considering extending the cut on excise duty of 9 per cent on petrol and diesel that is due to expire at the end of this year for another six months.

Education

Third-level fees are to be cut by €1,000 this year.

The measure means no student will pay more than €2,000 to attend third level education for the coming term.

The Minister is also seeking increases in SUSI grants. All students grant recipients will get a double payment this year.

Meanwhile, those studying for PHDs will get a once off payment before Christmas.

Healthcare

Funds will also be allocated to clear backlogs and waiting lists in the healthcare system.

A deal struck will see Minister for Health Stephen Donnelly offered €1.15 billion after €50 million in additional funding.

Funding is expected to be announced for a major expansion of the GP visit card scheme.

More than 430,000 people will become eligible for the first time for the means-tested scheme once changes to income limits are enacted after the Budget.

The moves mean around 2.5 million people, or half the population of the country, will have access to a free GP visit card or medical card and is part of the minister’s plan to introduce universal health care.

Housing

Help to Buy scheme extended, at current rates, until the end of 2024

Taxes

The higher rate of tax at 40pc will apply only to earned income of over €40,000 under what will be one of the highlights of the budget. The move, which Fine Gael has pushed for, will put an estimated €800 into the pocket of a single earner and €1,600 for a couple. It is one of the biggest tax cuts in recent years.

The second USC band is set to be increased to €10,908 from €9,283 due to the increase in the minimum wage. Personal tax credits for carers will also increase by €100 to €1,700.

Businesses

Businesses will get up to €10,000 a month paid in their electricity or gas bills as part of a €1bn scheme.

Small to medium enterprises will have 40pc of their increases in electricity or gas bills paid up to a maximum of €10,000 per month.

Hospitality

The VAT rate for the hospitality industry will increase from the pandemic reduced rate of 9pc to 13.5pc at the end of February which will be significant blow for pubs, restaurants and hotels.

Public transport

The 20pc reduction in public transport fares will continue until the end of 2023.

Newspapers

In a last-minute move, newspapers will be zero-rated for VAT in today’s speech

Alcohol

There is expected to be no additional taxes on beer or spirits in the Budget

Cigarettes

A packet of 20 cigarettes will cost an extra 50c in a new excise increase to be announced by Finance Minister Paschal Donohoe this lunchtime.