Summary
- Government Ministers have concluded their speeches in the Dáil – Opposition parties are now responding to Budget 2022
- Minister for Finance Paschal Donohoe announced a 30% tax deduction for heat, power and broadband costs for those working remotely during the pandemic
- The reduced VAT rate of 9% for the hospitality sector will remain in place until the end of August 2022
- The minimum wage will rise by 30 cent to €10.50
- Petrol and diesel prices will increase at midnight due to carbon tax changes – diesel up by 2.5 cent a litre, petrol up 2.1 cent
- Minister for Public Expenditure Michael McGrath confirmed free GP care is extended to children aged 6 and 7
- The weekly pension will increase by €5, while the weekly rate of the fuel allowance is also up €5
- Click here to read all the main points from the Budget announcement
16.00
We'll end our rolling coverage of the Budget here.
Elsewhere on breakingnews.ie, you can read the political reaction to today's announcements, detail on tax changes for cars, and all the main points from Budget 2022.
We'll have further reaction and stories as the day develops.
Thanks for following along with us.
15.30
Independent TD Marian Harkin said farmers were not getting their fair share of the carbon budget, with many feeling they are frozen out of some schemes. “They're supposed to be an incentive, instead it's a penalty,” she told RTÉ.
She said subsidised public transport was no use to young people living outside Dublin.
Independent TD Cathal Berry told RTÉ that he welcomed the tax credit for remote working, saying it “will help a small bit”.
Solidarity/People Before Profit TD Mick Barry renamed Budget Day as “national fiver day”, in reference to €5 increases across a range of social welfare benefits.
He told RTÉ that any increases for low paid workers will be wiped out by cost of living pressures.
15.15
The Labour Party has said the proposed increase to social welfare will not keep pace with expected inflation and price rises.
The party's social protection spokesperson Seán Sherlock said: “This budget spreads around lots of fivers but it doesn’t insulate those on fixed incomes from rising prices.
“Jobseekers Benefit and allowance of €203 a week would have to rise by a minimum of €7.50 just to keep pace with the projected inflation rate. Instead there will only be a €5 rise.”
15.10
People Before Profit TD Richard Boyd Barrett has criticised the Budget as “hopelessly inadequate” to address the housing and health crisis.
He said the Government is giving out “nothing more than crumbs” and that there is nothing to address the rental crisis.
He also criticised the €5 increase in the weekly pension.
15.05
Social Democrats co-leader Roisin Shortall has called the Budget “quite disappointing”.
Speaking to RTÉ, she said the changes to the tax system would mean very little to those on low pay. The increase in minimum wage was a “paltry” 30 cent per hour, she said.
She expressed disappointment that the age for free GP care for children went up only to age 7, stating that it should have increased to age 12 as in every other European country.
The €200 million funding to tackle waiting lists was throwing money at the problem without reform. “That doesn't do anything,” she said.
14.55
Need a quick overview of today's Budget announcement?
We have compiled all the main points from today's speeches, and what these measures might mean for you and your family in the year ahead.
Read more – Budget 2022: The main points and what it means for you
14.45
The Government has published the full speeches delivered by Paschal Donohoe and Michael McGrath.
Read both #Budget2022 speeches in full here🗨️
🗣️Minister @Paschald: https://t.co/YW36uk8fZL
🗣️Minister @mmcgrathtd: https://t.co/aqhNYfs5rg pic.twitter.com/y1fF4I7UkE— MerrionStreet.ie (@merrionstreet) October 12, 2021
14.40
Sinn Féin's Pearse Doherty condemns the Budget put forward by Ministers.
He says the Government was “out of touch, out of ideas and out of time”.
“Never has so much been spent to achieve so little. Energy prices are spiralling and your plan is to increase them further with carbon taxes.”
He tells the Dáil that housing prices and rents are out of control and said the Budget lacked measures to reassure families.
14.30
Mr McGrath confirms that young people, aged between 19 and 23, can use public transport with a 50 per cent discount on fares. A Youth Travel Card will be made available, at a cost of €25 million.
The arts and culture sector will benefit from a €25 million pilot basic income guarantee scheme for artists and the continuation of live entertainment supports.
An Garda Síochana will get an extra 800 new officers and 400 new staff in 2022 to “prioritise visible policing in both rural and urban areas”.
Mr McGrath concludes his speech by quoting Nelson Mandela.
Sinn Féin finance spokesperson Pearse Doherty is now responding to the Budget.
14.25
Mr McGrath confirms a €5 increase to the weekly pension. The living alone allowance will increase by €3.
The duration of parent’s benefit will also increase to seven weeks from next July, and from June, the back to school clothing and footwear allowance will increase by €10.
The rate of wage subsidy scheme for people with disabilities will rise by €1 per hour.
Mr McGrath also confirmed that the weekly rate of the fuel allowance will rise by €5.
There will be a 100 per cent Christmas bonus for those on social welfare this year.
14.20
Michael McGrath says more capacity is needed in the childcare sector and more flexibility for working parents.
He says Budget 2022 marks a “turning point” in the State’s approach to the early years and childcare sector.
He says the Government “will invest a record €716 million in childcare next year. I am providing €78 million for additional investment in core funding for the childcare sector and to reform the National Childcare Scheme”.
The National Childcare Scheme universal subsidy to children under 15 will be extended from September 2022, benefiting up to 40,000 children at a cost of €5 million.
“We will also remove the practice of deducting hours spent in pre-school or school from the entitlement to NCS subsidised hours. This will benefit an estimated 5,000 children, particularly from low-income families.”
14.15
The Minister says that the Government will bring forward proposals in the coming weeks for a “significantly enhanced scheme” to address the mica crisis.
Mr McGrath told the Dáil: “Following consideration of the workforce group report from the Department of Housing, the Government will bring forward proposals in the coming week for a significantly enhanced scheme to address this important issue.”
Families affected by the mica crisis have been calling on the Government to introduce a 100 per cent redress scheme.
14.10
The Minister for Public Expenditure confirms a dedicated women's health package worth €31 million, including free contraception for those aged 17-25.
Delighted to be introducing free contraception in #Budget2022. We are starting our rollout to those aged 17-25. Those of us who campaigned for Repeal committed to progressing this, as the evidence clearly shows that cost can be a real barrier – especially for younger women. pic.twitter.com/LZNIo5TT9g
— Stephen Donnelly (@DonnellyStephen) October 12, 2021
An additional €105 million has been set aside for disability services.
14.05
Mr McGrath announces the introduction of free GP care for children aged 6 and 7, with the intention to extend the coverage to all children over the age of 12.
The Drug Payment Scheme threshold will be lowered to €100.
He also announces investment to improve access to dental care. Another €250 million has been set aside to tackle hospital waiting lists.
13.55
The Minister for Public Expenditure says the Government will provide €7 billion in Covid funding.
Michael McGrath said approximately €4 billion of the Covid provision will be held as a contingency reserve “so that we can adapt if faced with the unexpected.”
He says he is allocating a record €6 billion in funding to the Department of Housing, Local Government and Heritage – an increase of over 15.5 per cent on last year's allocation.
Mr McGrath says €2.5 billion in direct capital funding will be made available for housing alone, supporting delivery of 9,000 new social housing units.
13.50
On corporation tax, Mr Donohoe confirms once again that the new rate will be 15 per cent.
Companies with revenues below €750 million will continue on the 12.5 per cent rate.
He says the national interest is best served by joining the global OECD agreement on tax.
Mr Donohoe concluded his speech by thanking the heroes of the pandemic, “both seen and unseen”.
Minister for Public Expenditure Michael McGrath is now speaking.
13.40
The excise duty on a pack of 20 cigarettes is to increase by 50 cent.
Mr Donohoe says this will bring the price of cigarettes in the most popular categories to €15.
13.35
Turning to climate change, Mr Donohoe says carbon taxation is the single most effective policy the Government can pursue.
He announces the extension of the €5,000 VRT relief for battery electric vehicles until the end of 2023 to continue to incentivise the uptake of electric vehicles.
13.30
Mr Donohoe says housing is the core issue facing the country.
As part of the Government's Housing for All strategy, he will introduce a zoned land tax to encourage the use of land for building homes. He says the main objective is to increase the supply of homes, rather than to raise revenue.
He also proposes to extend relief for landlords, to encourage those in the residential rental sector to return empty properties to the market as quickly as possible.
13.25
The reduced VAT rate of 9 per cent for the hospitality sector will remain in place until the end of August 2022, Mr Donohoe tells the Dáil.
He announces an income tax deduction for those working from home, amounting to 30 per cent of the cost of the aged expenses for gas, electricity and broadband while working from home.
As expected, he also announces that the standard rate band for income tax will increase by €1,500.
He also says that personal tax credit, employee tax credit and earned income credit will increase by €50.
The minimum wage is set to rise by 30 cent to €10.50.
13.20
The Minister for Finance says the budgetary package will total €4.7 billion, in line with the summer economic statement.
He says the pandemic is still with us and the Government has made provision for this. Some temporary support schemes will continue.
The Employment Wage Subsidy Scheme will remain in place in a graduated form until April 30th, 2022 – six months after the lifting of most public health restrictions.
13.15
The strong rebound in domestic activity has been accompanied by rising inflationary pressures, Mr Donohoe says.
Overall, he says 400,000 jobs will be added to the economy between this year and next, with employment expected to reach and exceed its pre-pandemic level during 2022.
“This performance by any measure represents a remarkable rebound in our jobs outlook,” he says. “We are recovering.”
13.05
Minister for Finance Paschal Donohoe begins his Budget statement to the Dáil with reference to the Covid-19 pandemic and its effects on the economy.
“Many lives were lost, many livelihoods were ruined”, he says. He commends the bravery and fortitude of people across Ireland.
He says the economic supports put in place during the pandemic worked and the response was strengthened by the European Union.
He says the economy is now entering a new phase – recovering from the pandemic, restoring public services and living standards and preparing the public finances for future events.
12.55
What to expect
The Minister for Finance will begin his Dáil speech within the next few minutes, and we already have some indication of what he will talk about.
There will be a focus on addressing rising cost-of-living pressures, as well as housing, childcare and climate action.
Of the €4.7 billion package, €1 billion is said to be available for new spending and €500 million is for tax measures.
Read here for a full summary of what to expect from Budget 2022.
12.45
Welcome to our live coverage of Budget 2022.
Minister for Finance Paschal Donohoe and Minister for Public Expenditure Michael McGrath will deliver their speeches in the Dáil chamber from 1pm.
We’ll cover their speeches in full here, along with the initial response from the main opposition party, Sinn Féin, and its spokespeople Pearse Doherty and Mairead Farrell.
You can watch a live video of events in the Dáil at the top of this page.
Thanks for following along with us.
