Budget 2023: Breaking it Down

by Lisa Downey | Sep 28, 2022
Ireland's Budget 2023

Budget 2023 was announced on September 27th by Minister for Finance, Paschal Donohoe, and Minister for Public Expenditure, Michael McGrath.

With many changes and new offerings by the Government, below are some of the key announcements we have found affecting our sector:

Environment and Energy

  • €600 will be given in electricity credits for all households to be paid in three installments of €200, starting in November 2022
  • Fuel allowance payment recipients to receive an extra lump sum of €400 before Christmas, as well as the qualifying income threshold to be increased from January 1st 2023 to allow more people to avail of the benefit
  • €337 million will fund over 37,000 home energy upgrades including upgrades under the Better Energy Warmer Homes Scheme for households in, or at risk of, energy poverty. €291 million of this funding is being provided from carbon tax revenue
  • The 9% VAT rate for gas and electricity is extended to 28 February 2023
  • The reduction of 21 cent per litre tax for petrol, 16 cent per litre for diesel and 5.4 cent per litre for Marked Gas Oil are also extended to 28 February 2023
  • New energy supports of €1.25 billion will be available for SME’s under the Temporary Business Energy Support Scheme
  • The €5,000 relief towards the private purchase of qualifying electric vehicles (EVs) will continue with a gradual reduction in the grant from July 2023. The home charging infrastructure scheme will continue to include multi-unit dwellings. The Low Emission Vehicle Toll Incentive Scheme is also continuing

Housing and Rent

  • Help-to-Buy scheme will continue, at current rates, until the end of 2024
  • Taxpayers who rent will receive a new rent tax credit valued at €500 per year from 2023 – it can also be claimed in respect of rent paid in 2022
  • A new Vacant Homes Tax is being introduced for residential properties which are occupied for less than 30 days in a 12 month period
  • Capital funding of €2.3 billion has been allocated for social and affordable housing in 2023. The funding is expected to deliver 9,100 new build social homes and over 5,550 affordable and cost rental homes
  • €67 million is provided for 12,300 grants to adapt the homes of older people and people with a disability. A further €25 million is allocated for adaptation works to 1,800 existing social homes
  • Funding of €65 million is provided to support the remediation of homes affected by pyrite and defective concrete blocks under the Pyrite & Mica Remediation Scheme
  • Funding of €87 million is provided to retrofit at least 2,400 social homes to bring them to a BER of B2 to make them more energy efficient
  • 10% levy on concrete blocks and other concrete products
  • A new longer-term low-cost loan of up to €500,000 for up to 10 years, to help Small and Medium Enterprises (SMEs) including farmers and fishers to expand or invest in sustainability or energy efficiency.

The €11 billion budget announced in the Dáil also outlines other funding in the areas of health, education, employment and childcare. The full guide to Budget 2023 can be found here on the Government website.