LAST UPDATE | 12 Oct 2021

THE GOVERNMENT HAS unveiled its Budget for 2021, announcing how it plans to spend a €4.7 billion package.

Here are some of the main points…

WELFARE

• The Pandemic Unemployment Payment (PUP) is to remain in place until the end of February.
• An increase of €5 in the main weekly welfare payments.
• Weekly pension payments will also increase by €5.
• The Living Alone Allowance (for those on pensions) will increase by €3 per week.
• Changes to the income thresholds for Carer’s Allowance will mean a single person earning €350 per week and a couple earning €750 per week will still qualify.
• Parents Benefit is to be increased by two weeks to seven weeks from July 2022.
• The Back to School Allowance will be increased by €10.
• Fuel Allowance payments are set to rise by €5 per week – this kicks in from tonight.
• The full Christmas bonus will be paid to welfare recipients.

TAX AND INCOME

• Each of the personal tax credits, employee tax credits and income tax credits will be increased by €50.
• The ceiling of second USC rate band to is to be increased from €20,687 to €21,295.
• An increase of €1,500 in the income tax standard rate band for all earners from €35,300 to €36,800.
• The national minimum wage will increase by 30 cents to €10.50 per hour.
• The reduced VAT rate of 9% for hospitality businesses will remain in place until the end of August next year.
• There will be an income tax deduction amounting to 30% of the cost of vouched expenses for electricity, heating and broadband in respect of those costs incurred while working from home.
• There will be no increased excise duty on alcohol and there will be a 50 cent excise relief for independent small producers of cider and other fermented drinks.
• Excise duty on a packet of 20 cigarettes will increase by 50 cent.

HOUSING

• A zoned land tax is to be introduced to encourage the use of land for building homes.
• An additional 14,000 Housing Assistance Payment (HAP) tenancies will be delivered. 
• €18 million for Traveller accommodation. 
• Relief for pre-listing expenses for landlords will be extended for another three years to encourage landlords to return empty properties to the market as quickly as possible.
• As previously announced by the government, some 9,000 new build social housing units will be delivered next year as well as over 4,000 affordable homes. 

CLIMATE CHANGE

• The carbon tax will be increased by another €7.50 this year to €41 per tonne.
• A tax disregard in respect of personal income received by households that sell surplus electricity that they generate back to the grid.
• An extension of the €5,000 vehicle registration tax relief for battery electric vehicles to the end of 2023.
• A €202 million fund to improve energy efficiency in homes.

HEALTH

• Funding of €500 million for Covid measures such as testing/tracing and vaccination.
• Free GP care is to be extended to children aged six and seven. 
• The threshold for the drugs payment scheme has been lowered, meaning the maximum someone will pay for approved prescribed drugs will be €100.
• Access to free contraception for women aged 17-25 from next August. 
• 19 additional critical care beds will be funded next year. 
• €105 million for disability services, including supports for school leavers and those inappropriately living in nursing homes. 
• €37 million for the expansion of mental health services

 TRANSPORT

• For those aged 19-23 the cost of public transport is to be halved – this will be rolled out from the middle of 2022 with a new Youth Travel Card.
• €360 million is being provided for Active Travel and Greenways. 
• €60 million in funding for the aviation sector to provide capital and operational grant schemes as well as supports for regional public service obligation services.
• €108 million in maritime funding, including spending on safety training, equipment and systems for the Irish Coast Guard.

EDUCATION AND CHILDCARE

• 350 new primary school teachers and more than 1,000 new SNAs.
• Funding of €16 million for an additional 980 special education teachers in special classes, special schools and mainstream schools.
• A reduction in class sizes.
• €4 million to extend the hot school meals programme.
• Additional administrative principals in special schools and mainstream schools with two or more special classes. 
• The Susi maintenance grant for higher educations students will be increased by €200.
• The national childcare scheme universal subsidy will be extended for children under 15 from September. 
• A new funding stream for up to 4,700 early years and childcare providers. 

BUSINESS

• The Employment Wage Subsidy Scheme (EWSS) is  be extended to April 2022.
• €60 million in funding to extend the commercial rates waiver until the end of the year.

JUSTICE

• Funding for an additional 800 gardaí and 400 Garda civilian staff will be provided. 
• €6.7 million will be available to the Youth Justice Strategy to support the development of early interventions. 
• A funding package will be provided to extend legal aid for victims of domestic, sexual and gender-based violence.
• €1 million in funding for additional doctors and nurses in the prison system.
• €850,000 will be provided for the recruitment of psychologists in prisons for early engagement with people convicted of sexual violence.