All households are to receive a further set of credits to assist with energy bills over the winter period, the Minister for Public Expenditure has said.
Three credits of €150 each will be provided between the end of this year and April of next year, Minister Paschal Donohoe told the Dáil.
The minister also said a €300 lump sum payment will be made to recipients of the Fuel Allowance in the last quarter of this year, while an additional €200 will also be paid this year to recipients of the Living Alone Allowance.
All households will receive three credits of €150 each between the end of this year and April 2024 to assist with energy bills over the winter, Minister Paschal Donohoe has said as #Budget2024 is announced in the Dáil Follow live updates: https://t.co/GHCMX8FYfR pic.twitter.com/TUDa0X6k8r
— RTÉ News (@rtenews) October 10, 2023
Earlier, Minister for Finance Michael McGrath said he would extend the 9% reduced VAT rate for gas and electricity for another 12 months.
"It is estimated that consumers will save an additional €90 for electricity and those who use gas will save an additional €62 during the 12-month extension," Minister McGrath said.
Minister McGrath confirmed that the Government is to defer the final restoration of excise duty on motor fuel that was due to come into effect at the end of October.
Michael McGrath said the outstanding amounts of 8 cent on a litre of petrol and 6 cent on diesel, as well as 3.4 cent on marked diesel, would come into effect in two equal instalments on 1 April and 1 August next year.
Excise duty was temporarily cut at the start of 2022 during a period of energy prices increases on international markets.
They were gradually restored in recent months but pressure was brought to bear on the Government to defer the final restoration as energy prices started to increase again in recent weeks.
Minister McGrath also announced an increase in the Rent Tax Credit from €500 per year to €750 per year for 2024.
Minister for Finance Michael McGrath announces an increase to the Rent Tax Credit from €500 per year to €750 per year for 2024. | Follow live updates: https://t.co/GHCMX8FYfR pic.twitter.com/5kutwx1Xcv
— RTÉ News (@rtenews) October 10, 2023
Parents who pay for their student children who have tenancies in 'Rent a Room' or 'digs' accommodation will also be able to claim the Rent Tax Credit.
It will also be backdated to allow for claims to be made for the 2022 and 2023 tax years.
Minister McGrath announced that the Motor Insurers Insolvency Compensation Fund levy is to reduce by 1 per cent on policies that come up for renewal from 1 January.
The fund currently applies at a rate of 2 per cent of premiums received on all non-life insurance policies.
The purpose is primarily to repay the Exchequer for funding the administration of Quinn Insurance.
Up to 2.2 million policy holders on renewal from 1 January 2024, Minister McGrath said.
He also announced an increase in the temporary universal relief of the Benefit in Kind (BIK) regime for company cars.
