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News

Bonus welfare payments and extended 9% VAT rate in cost-of-living plan

written by Staff Writer February 21, 2023
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Extra supports for pensioners, carers and parents have been agreed in the government’s new cost-of-living measures, it has been revealed.

The Cabinet signed off on bonus payments yesterday, which include a €200 lump sum for pensioners, carers, people with disabilities and lone parents; a €100 child benefit lump sum and an increase the Back-to-School Clothing & Footwear Allowance by €100.

The 9% Vat rate for the hospitality sector is to be retained throughout the summer. Hoteliers and experience providers have been campaigning for the rate not to be increased to 13.5% as planned next week.

The government has also decided to stagger the increase of excise duty on petrol and diesel. It will remain at the current rate until 1 June, before going up on 1 Sept and 31 October.

Petrol will go up by 6 cent on 1 June; 7 cent on 1 Sept; and 8 cent on 31 October. Diesel will also go up in increments of 5c in June and a further 6c in September and October.

The total cost of the new social protection measures is over €400million.

Bonus welfare payments and extended 9% VAT rate in cost-of-living plan was last modified: February 21st, 2023 by Staff Writer
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