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Here's what you can expect from Budget 2022

An increase in the old age pension, 50c on a pack of cigarettes and €100m for childcare are jus...
Jack Quann
Jack Quann

11.01 11 Oct 2021


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Here's what you can expect fro...

Here's what you can expect from Budget 2022

Jack Quann
Jack Quann

11.01 11 Oct 2021


Share this article


An increase in the old age pension, 50c on a pack of cigarettes and €100m for childcare are just some of the items that'll be announced in the budget on Tuesday.

A COVID reserve fund will also form part of the plan to help the health and tourism sectors.

But Newstalk's political correspondent Sean Defoe told Pat Kenny there shouldn't be too many surprises.

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"Very few surprises get thrown in on Budget Day anymore - usually we have in some cases, in fact, bits of it this year weeks in advance, let alone days in advance.

"So we know the overall shape of what Paschal Donohoe and Michael McGrath are going to announce tomorrow."

He says figures around increasing the fuel allowance and plans to hire 1,000 SNAs are still being finalised.

"We know that there is going to be an increase in the fuel allowance, we don't know how much it's going to be.

"There was talk about somewhere between €3 and €5 a week - up from the current €28 a week to somewhere around €31 or €33.

"But we know that there's going to be €5 on the pension, €5 on other social welfare payments as well.

"We know the Wage Subsidy Scheme is going to be extended, there'll be money for childcare, money for retrofitting, indexing of tax bands.

"There'll be a bit of a COVID reserve fund as well, and a lot in there for health; €100m as well for the tourism sector."

Sean says the country's finances are healthier than previously thought, and this could leave room for some curveballs.

"The interesting spoke was thrown in on Friday was that news that actually the budget deficit isn't going to be as big as we thought it was.

"And if minister's wanted to, there was €7bn that had been planned for - that we'd had a planned deficit that is no longer going to be there.

"They'd forecast about €20bn, it's going to be closer to €13bn.

"I kind of have a feeling there will be something thrown in there, maybe a bit of a curveball tomorrow, that might come out of that money.

"There will be a little bit of a surprise but... the vast majority of it we know".

'Childcare freeze'

Sean says €100m for childcare will likely see a freeze in prices, rather than a reduction.

"The deal is going to be, for childcare providers, that the State will subsidise the wages of your staff through perhaps the Wage Subsidy Scheme - or perhaps another vehicle still to be set up.

"And in exchange, you will have to commit to parents not to increase your costs.

"So it isn't actually going to be a decrease for parents, but it is going to be a freeze of where things are.

"The plan then, from Roderic O'Gorman, and the department is over the next few years to keep on increasing that spending.

"So you freeze it now, then next year you might have another €100m to bring the cost down - the year after that you might be able to bring the cost down a little bit further".

And he says while alcohol looks to be left untouched, people will get hit in the pocket elsewhere.

"Obviously the carbon tax is going to be one that's going to affect everybody: filing a tank of diesel for your car is going to be about €1.50 more expensive, and petrol €1.30 more expensive.

"Then also peat briquettes, coal - all those sort of things getting more expensive.

"One that could be brought in, and is being talked about from the Department of Housing, is a vacant site tax with a bit more teeth in it.

"The suggestion is if you have a site that has planning permission, and is connected to water and electricity and it's fully serviced and all that that they would face a 3% value tax if they leave it sitting for a certain period of time".

Here's what you can expect from Budget 2022

00:00:00 / 00:00:00

    

Main image: Finance Minister Paschal Donohoe outside Government Buildings in Dublin holding Budget 2019. Picture by: PA Images/Alamy Stock Photo/Niall Carson

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Budget 2022 Budget Day COVID Reserve Fund Childcare Cigarettes Fuel Allowance Michael McGrath Paschal Donohoe Pension Increase Seán Defoe Wage Subsidy Scheme

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