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BEFORE TODAY, THE government announced the details of the 2021 Budget for a total value of 17.75 billion euros, the largest the State has ever seen.
The main points of the huge plan on how the government will spend, tax and borrow for the next year can be read here.
Announcing some of the budget measures today, Public Expenditure Minister Michael McGrath said that the welfare system in Ireland has “reduced inequality and poverty.”
The budget’s social assistance package has a total value of 520 million euros with a wide range of announced measures.
Pandemic unemployment payment (PUP)
Freelancers who receive the PUP can earn up to € 480 per month without losing their payment. The government has indicated that this measure will take effect soon.
In a statement, the Minister of Social Protection, Heather Humphreys, said that this measure “will give certainty to workers in sectors such as our taxi industry and our arts and entertainment sectors.”
Currently, the puppy will continue until April 1 of next year.
When asked today if the PUP could be spent beyond this time, Humphreys said there is “no crystal ball” in the pandemic.
He said the pay will be reviewed in January and the government will weigh whether people are still out of work.
He said this review will also consider the proposed cut to the PUP that is due in February, when it will be reduced to a maximum of 250 euros per week.
In its current form, the PUP is paid at three tiers determined by a person’s weekly income prior to the pandemic.
Currently, the highest amount is € 300 per week and the lowest is € 203 per week.
In reaction to the budget, Labor social protection spokesman Sean Sherlock criticized the government for not restoring cuts to the PUP earlier this year.
He said: “If € 350 was good enough in March and April, why isn’t it now? They told us that this government would not return to austerity. For the tens of thousands of workers who lost their jobs through no fault of their own and had income support cut, this will be a difficult winter.
christmas bonus
The one-week Christmas bonus for people on welfare will be awarded this year to those who have received payments for four months or more.
This includes the people in the puppy.
The four months do not have to be continuous, which means that the government expects the majority of PUP recipients to take advantage of this bonus.
Previously, people had to have received social assistance payments for 15 months before receiving the bonus.
Minister Heather Humphreys said the Christmas bond will cost the public purse 350 million euros this year, compared to 279 million last year.
Children
The parent benefit will be extended to five weeks for parents.
This is an additional benefit to parental leave for those who have sufficient contributions to PRSI.
Each qualifying parent is currently entitled to parental benefit during parental leave for two consecutive weeks, or two separate weeks of leave in the first year after the birth or adoption of their child.
Families receiving a weekly benefit for children will see an increase from € 2 to € 38 per week for children under 12 years old, and an increase from € 5 to € 45 per week for children over 12 years old.
This will affect more than 419,000 children and will take effect from January 2021.
The income threshold of € 425 per week for the single-parent family payment will be eliminated from April 2021. This is a payment for parents who raise their children without another person.
Sick benefit
Sickness benefit will now be available to those who have been out of work due to illness for three days instead of six.
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Other announcements
The state’s retirement age will remain at 66 years and a pension commission will be established.
The Caregiver Support Grant will increase by € 150, from € 1,700 to € 1,850 per year. This is paid annually in June.
The living allowance will only increase from € 14 to € 19 per week.
The fuel allowance will increase by € 3.50 per week to € 28 from January. This is intended to help those with lower incomes pay for the additional energy costs they are likely to incur due to the increased carbon tax. This will affect more than 375,600 households.
The subsidy for a widowed or surviving couple will have an increase of € 2,000, from € 6,000 to € 8,000.
Earnings without taking into account the disability allowance will increase from € 120 to € 140 per week from June next year.
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