As the Deputy may be aware, the reduced rate of Universal Social Charge (USC) for medical card holders was never intended to be a permanent feature of the USC. Instead, it was planned to phase in the full USC charge for medical card holders via a transitional approach. This concession for medical card holders has been extended on a number of occasions most recently in Budget 2022, with an extension of the reduced rate of USC until 31 December 2022.
At Budget 2022, the cost of extending the reduced rate of USC for medical card holders was estimated at €62 million. However, this was cost-neutral in Budget package terms as this measure was considered to be accounted for in the tax base.
The Budget package cost of extending any measures with sunset clauses will be set out in the Budget Day documentation. However, it is important to point out that if any measure is extended into 2023, the cost may be subject to revision based on the latest available data. For example, it is currently estimated that the reduced rate of USC for medical card holders would cost in the region of €40 million in 2023.