A Budget 2020 Explainer

Brexit and climate change were the dominant elements of Budget 2020, but there are a number of measures that will impact on the personal finances of individuals and their families.

The Budget 2020 was announced by Minister for Finance Paschal O'Donoghue on Tuesday afternoon.

Officially unveiled in Dáil Éireann at 2pm, Donohoe introduced "a budget without precedent" boasting "absolutely no surprises" that addressed domestic issues in addition to the international climate emergency.

The document also heavily leant towards the possibility of a No-Deal Brexit.

"These are also times without precedent and as we respond, we do so with the resources of a well-run economy and the purpose and certainty of good government and responsible politics," Donohoe added, noting that the Budget was constructed "in the shadow of Brexit."

Key points:

Alcohol

No change

Cigarettes

+50c for a pack of 20
Pro-rata increase on tobacco products

Housing

€2.5 billion allocated to housing in 2020
Additional €20 million for homeless services
Capital funding of over €1.1 billion allocated to the delivery of over 11,000 new social homes in 2020
Another 12,000 social housing units to follow in 2021
Extra €80 million for Housing Assistance Payment
Additional €17.5 million provided to Land Development Agency, €186 million provided for the Serviced Site Fund and Local Infrastructure Housing Activation Fund in 2020
€130 million of investment made available for urban generation and redevelopment funding "for the rejuvenation of our major cities and other large towns"
Almost €2 million in additional funding to Residential Tenancies Board to support increased powers and investigate and sanction non-compliance
Stamp Duty raised by 1.5% on non-residential property
Help to Buy scheme extended in current form until end of 2021

Health

Overall expenditure increase of €1 billion / 6.3%
Additional €25 million for National Treatment Purchase Fund
Prescription charges for all persons reduced by 50 cent
Drug Payment Scheme reduced by €10 per month
Medical Card income thresholds increased for people over 70 by €50 for a single person / €150 for a couple per week, benefitting up to 56,000 people
From September, the government aims to expand free GP care to children under 8 and free dental care for children under 6
One million additional home care hours to be provided in 2020

Employment

Earned Income Credit for self-employed increased by €150, value raised to €1,500
Home Carer Credit increased, value of credit raised to €1,600
Extension of reduced rate of USC for medical cardholders until end of 2020

Social Welfare

Increase of €690m in 2020 for the Department of Social Welfare
100% Christmas bonus to all social welfare recipients in 2019
€15 increase for the One-Parent Family Payment
Increase in Qualified Child Payment by a further €3 for over 12s / €2 for under 12s

Education

€11 billion provided to Department of Education and Skills in 2020
150 new mainstream teaching posts in schools
€1.9 billion investment in special education
400 additional posts in support of special educational needs
1,000 additional special needs assistants to be hired

Climate Action Plan

Planned increase on price of carbon from €20 to €80 per tonne by 2030
Carbon tax raised by €6 per tonne
Carbon tax change applies to auto fuels - approx 2c extra per litre on petrol and diesel - effective from midnight Wednesday
Application to other fuels delayed until May 2020
1% diesel surcharge introduced last year replaced with nitrogen oxide (NOx) emissions-based charge applying to all passenger cars from 1 January 2020
€5 million for peatland rehabilitation (250% increase in budget)
Ireland to double annual contribution to Green Climate Fund
€2.7 billion allocated to Department of Transport, Tourism and Sport - increase of €384 million and will include investment in Rural Transport Network
€9 million for sustainable mobility projects eg: greenways, urban cycling projects
€3 million for additional electrical vehicle infrastructure
€8 million for grants to purchase electric cars