Dáil Éireann Debate, Tuesday - 4 October 2022
108. Deputy John Lahart asked the Minister for Public Expenditure and Reform the cumulative total of spending measures in budget 2023, with a specific focus on tackling cost-of-living issues; and if he will make a statement on the matter. [48229/22]
Amharc ar fhreagraBudget 2023 provides substantial resources (c. €4.5bn) in expenditure measures to respond to price pressures, particularly for those on lower incomes. While Government has already taken significant steps to ease the burden of the rising cost of living, it is clear the winter ahead will bring uncertainty for many households and businesses. To go towards alleviating this, Budget 2023 contains a significant response to support households, public and community services and businesses.
Households
The Government announced a €2.2 billion Winter cost of living package for households. This includes:
- a double week payment for weekly 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 & Invalidity Pension,
- a €200 living alone allowance lump sum,
- a €500 working family payment lump sum,
- a €140 double child benefit payment,
- a once off reduction in the student contribution fee by €1,000 for undergrads and 1/3 for Apprentices; €1,000 increase to post-graduates tuition fee contribution grant.
- a double payment to those eligible for SUSI maintenance grants and once off payment of €500 for SFI and IRC PhD researchers,
- €8 million for the Student Assistance fund, and
- three €200 electricity credits with the two instalments in the New Year.
In addition, a Christmas Bonus will also be paid to eligible social protection recipients in 2022 at a cost of €0.3 billion. While the supports provided are substantial, Government cannot protect all households and businesses against the full effects of inflation as the level of resources available are finite, and to do so would lead to additional inflationary pressures. However, the measures introduced do recognise the particular challenges faced by those on lower and fixed incomes.
These one-off measures are complemented by a comprehensive range of new core permanent spending measures for 2023. The estimated value of those measures focusing on cost of living is c. €1.3 billion. These measures include €12 weekly Social Protection rates increase for working age and pension payments and an increase in the universal subsidy on the National Childcare Scheme. Health, Education and Further & Higher Education measures will provide further support.
A further €0.15 billion will be allocated for the continuation in 2023 of the 20% average fare reduction on Public Transport and the Young Adult Card on Public Service Obligation bus and rail services.
Public and community services
In recognition of the unprecedented rise in energy bills being experienced across the economy, Government is also making available €340 million in 2022 to support other sectors / services. This will support schools, further and higher education institutions, certain health funded bodies, local authorities, and a range of bodies and institutions in the areas of Culture, Arts, Gaeltacht, Sports and Community.
Business
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. This scheme will provide funding to help firms faced with liquidity shortages as a result of increased energy costs.
Additional taxation measures for households and businesses were also announced as part of Budget 2023.
