The key points of the immense plan of how the government will spend, tax and borrow for the next year can be read here.
Public Spending Minister Michael McGrath today announced some of the budgetary measures, saying the welfare system in Ireland has “reduced inequality and poverty”.
The total social budget package in the budget amounts to EUR 520 million, with a large number of measures announced.
Pandemic Unemployment Payment (PUP)
Self-employed people receiving the PUP can earn up to € 480 per month without losing their payment. The government has announced that this measure will take effect soon.
In a statement, Social Protection Secretary Heather Humphreys said the move would “give security to workers in sectors such as our taxi industry and our arts and entertainment sectors.”
The PUP is currently set to continue until April 1st next year.
Humphreys was asked earlier today if the PUP could be consumed beyond that time and said the pandemic had “no crystal ball”.
She said the payment will be reviewed in January and the government will consider whether people are still unemployed.
She said this review will also look at the proposed cut in the PUP, due in February if it is slated to a maximum of € 250 per week.
Currently, the PUP is paid out at three levels determined by a person’s weekly income prior to the pandemic.
The highest amount is currently € 300 per week and the lowest is € 203 per week.
In response to the budget, Labor Social Protection spokesman Sean Sherlock suggested the government for failing to restore the PUP cuts earlier this year.
He said, “If € 350 was good enough in March and April, why is it not good enough now? We were told that this government would not go back to austerity. It will be a tough winter for the tens of thousands of workers who have lost their jobs through no fault of their own and whose income support has been cut.
Christmas bonus
The weeklong Christmas welfare recipients bonus will be given this year to those who have received the payments for four months or more.
This includes people on the PUP.
The four months do not have to be uninterrupted, which means the government expects most PUP recipients to take advantage of this bonus.
Previously, people had to have received the benefits for 15 months before receiving the bonus.
Minister Heather Humphreys said the Christmas bonus will cost the treasury € 350 million this year, compared to € 279 million last year.
children
Parental allowance is extended to five weeks for parents.
This is a benefit in addition to parental leave for those with sufficient PRSI contributions.
Each eligible parent is currently entitled to the parent’s benefit during the parents’ two-week vacation or two separate weeks of vacation in the first year after the birth or adoption of their child.
Families that receive a weekly benefit for children are increased by € 2 to € 38 per week for children under 12 and by € 5 to € 45 per week for children over 12.
This affects more than 419,000 children and will take effect from January 2021.
The weekly income threshold of € 425 for the one-parent family payment will be abolished from April 2021. This is a payment for parents who are raising children without another person.
Sick pay
Sick pay is now available to those who have been unemployed for three days instead of six because of illness.
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Other announcements
The state retirement age will remain at 66 and a pension commission will be set up.
The care allowance increases by € 150 from € 1,700 to € 1,850 per year. This is paid annually in June.
The Living Alone Allowance increases from € 14 to € 19 per week.
From January, the amount of fuel will increase by € 3.50 per week to € 28. This is supposed to help people on lower incomes pay additional energy bills likely to incur due to the increase in carbon tax. This will affect more than 375,600 households.
The grant for widowed or surviving partners is increased by € 2,000 from € 6,000 to € 8,000.
The earnings from the disability allowance will increase from € 120 to € 140 per week from June next year.
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