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Paschal Donohoe and Michael McGrath ahead of yesterday's announcement Sasko Lazarov/RollingNews.ie

Budget 2021: What measures kick in today?

A number of changes have already kicked in since yesterday’s announcement.

THE NEW GOVERNMENT unveiled its first Budget yesterday, the largest in the history of the State, which aims to help the economy recover from the effects of the Covid-19 pandemic.

Although the new measures primarily deal with what will happen next year, a number of changes have already kicked in – since the Budget was announced, there have been increases in the price of petrol and cigarettes.

A lot of what was announced yesterday was expected, with no shortage of reports about the measures set to be introduced, but many still wondered when they would feel the changes in their pocket.

Now that the Budget has been delivered, here’s what measures come into effect today and which ones will kick in at a later date.

Carbon Tax

In line with a commitment set out in the Programme for Government commitment, a carbon tax increase of €7.50 – from €26 to €33.50 – per tonne of CO2 emitted was announced.

The increase will apply to motor fuels from today, but will not affect other fuels (like the ones used to heat your home) until 1 May next year.

It is the second year in a row the carbon tax rate has increased. Last year saw a €6 rise from €20 per tonne of CO2 emitted. 

Cigarettes

The price of cigarettes increased by 50c at midnight.

A packet of cigarettes in the most popular price category now costs €14. There will also be a pro-rata increase on other tobacco products. 

For another year, no excise duty on alcohol was announced. 

Weekly rebates for businesses

A new scheme for businesses most impacted by the pandemic, such as pubs and hotels, will also kick in from today.

The scheme, which will operate when Level 3 or higher of the Covid roadmap is in place, will see businesses receive weekly payments of up to €5,000 if they are forced to close or effectively close because of prohibited or restricted assess by customers.

The rebates will be based on average 2019 weekly turnover, and will be paid in addition to the Employment Wages Subsidy Scheme (EWSS). 

Those who meet the criteria have been urged to contact the Revenue Commissioners as soon as possible, and it’s expected the first cash payments will be made by mid-November.

Kicking in before the end of the year…

Christmas bonus

The Christmas bonus – including to some self-employed people on the Pandemic Unemployment Payment – will be paid in December. 

The bonus is paid to many of those on social welfare and was cut during the economic crash, before being incrementally restored in recent years, reaching 100% in 2019.

Self-employed workers will be able to continue earning up to €480 per month – or €120 a week - without losing access to the Pandemic Unemployment Payment.

Anyone getting the payment for four months up to December will receive the bonus.

VAT reduction

The Government announced that a reduced rate of VAT for the hospitality and tourism sector to 9% – down from 13.5% – will take effect from 1 November.

The move repeats a cut implemented to help out the sector (one of the hardest hit by Covid-19) during the economic crash a decade ago, and will last until the end of 2021.

Kicking in next year… 

January 2021

A €2 increase in the Qualified Child Payment for children aged under 12 and a €5 increase for children aged 12 and over will kick in from January next year.

The Living Alone Allowance will also increase by €5, from €14 to €19, while Fuel Allowance will rise by €3.50, from €24.50 to €28 per week.

A €1,000 support grant to provide supported employment services for jobseekers with a disability will also be introduced in January.

Meanwhile, a new form of Motor Tax will be introduced for cars registered after that date.

The new tax on vehicles will instead take account of the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) emissions system.

Speaking in the Dáil yesterday, Finance Minister Paschal Donohoe said the new regime will be based on emissions performance levels “which are much closer to real world performance levels than is currently the case”.

“We have strengthened the environmental rationale of the VRT regime to encourage motorists who are in the market for a new car to make greener choices,” he added.

April to December

The Employment Wage Subsidy Scheme, currently set to expire on 31 March, will continue in some form beyond that date, with Donohoe saying a similar scheme would be needed until the end of the year to provide businesses with greater levels of certainty.

The Government is also putting in place a Recovery Fund for businesses of €3.4 billion in light of the threat posed by Brexit.

Public Expenditure Minister Michael McGrath announced an additional 2,100 posts in the school system, including another 990 new special needs assistants (SNA), which will likely be available for the new school year next September. 

A further €20 million has also been allocated to ensure students impacted by Covid-19 have access to supports through the SUSI grant system ahead of the next academic year.

The SUSI fee for postgraduate study will also increase by €1,500 to €3,500 ahead of next September.

You can read back on our in-depth coverage of Budget 2021 here. 

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65 Comments
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    Mute Ned
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    Dec 18th 2024, 8:06 PM

    Mayor, leave the Lord part out of it, leave the
    Lord stuff to the British I say.

    194
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    Mute Dermot Blaine
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    Dec 18th 2024, 8:35 PM

    @Ned: yes, let’s give them back their language, roads, train lines, judicial system, parliamentary system, football, television, pantomines, Christmas traditions, parks and the county system they designed. Down with that sort of thing.

    66
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    Mute Mick Duvanny
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    Dec 18th 2024, 9:07 PM

    @Dermot Blaine: The judicial system isn’t great. Should’ve been changed years ago

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    Mute Brian Hunt
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    Dec 18th 2024, 10:45 PM

    @Mick Duvanny: The legal industry, which is well represented in the government, don’t want change. One of the conditions for the financial bail-out was reform of the legal system, the government reneged on that. The present system is extremely lucrative.

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    Mute Ned
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    Dec 18th 2024, 11:14 PM

    @Dermot Blaine: if you say so lad but you might want to keep a few just in case?

    32
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    Mute Dominic Leleu
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    Dec 19th 2024, 7:39 AM

    @Ned: it is indeed the first priority for the “kip”…. come on ned

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    Mute Jim O'Sullivan
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    Dec 19th 2024, 7:57 AM

    @Dermot Blaine: \what an utterly forelock tugging comment Anyway, most of the items you cire were not English innovations—but then what do you expect from an Eastenders fan,

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    Mute Ned
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    Dec 19th 2024, 4:41 PM

    @H Woo: that’s a very strange question? We speak English these days,

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    Mute Jp Cleary
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    Dec 18th 2024, 8:10 PM

    Why is this article up again…. seen it 3/4 days ago .

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    Mute Alan Power
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    Dec 18th 2024, 8:13 PM

    @Jp Cleary: and you’ve seen it again!

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    Mute Brian Hunt
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    Dec 18th 2024, 10:47 PM

    @Jp Cleary: Maybe you weren’t paying attention!

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    Mute Michael Collins
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    Dec 18th 2024, 8:24 PM

    What a surprise …

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    Mute Alan Power
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    Dec 18th 2024, 8:30 PM

    @Michael Collins: no surprise, you are a stalker, with multiple trolling accounts Michele Caine lol

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    Mute Dermot Blaine
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    Dec 18th 2024, 8:36 PM

    @Michael Collins: not a surprise, you commented on it yesterday

    14
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    Mute Brian Hunt
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    Dec 18th 2024, 10:52 PM

    Should be an elected position, with real power!

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    Mute Dermot Lacey
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    Dec 19th 2024, 12:17 AM

    @Brian Hunt: It is an elected position.

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    Mute Dave O Neill
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    Dec 19th 2024, 11:06 AM

    @Dermot Lacey: Elected by who

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    Mute Dermot Lacey
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    Dec 19th 2024, 9:01 PM

    @Dave O Neill: by the same system that elects the Taoiseach. The elected ( by the people) members in the Chamber to which they were elected then elect the Lord Mayor.

    1
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    Mute Cormac McKay
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    Dec 18th 2024, 10:42 PM

    Our 7th ceremonial powerless Mayor in Dublin City Council in 5 years

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    Mute Frank Mc Carthy
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    Dec 18th 2024, 8:07 PM

    Congratulations Emma Blain, best of luck in your tenure.

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    Mute Kevin Kerr
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    Dec 18th 2024, 9:24 PM

    @Frank Mc Carthy: last week you referred to the role as another snout in the trough. Frank the fraud. Frank the troll

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    Mute Frank Mc Carthy
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    Dec 18th 2024, 9:39 PM

    Hi brenny, those comments about that cinema in Galway were seriously vile….delighted you got deleted.

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    Mute Kevvy kerrr
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    Dec 18th 2024, 9:41 PM

    @Basildon Joe: just a heads up Joe. ..this one is one of brennys…… bren set up this one to stalk/ bully me

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    Mute Quinny
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    Dec 18th 2024, 11:05 PM

    Not on topic, but imagine trying to cross the sea for a better life and to drowned, men , women and children dieing while we eat our Christmas dinner soon and complain about things that don’t even matter. Life has little understanding no matter how old you become!!

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    Mute Alan Power
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    Dec 18th 2024, 8:05 PM

    Good

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    Mute Alan Power
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    Dec 18th 2024, 8:08 PM

    The thug who threw excrement at Ann Rabbitte should have been jailed for at least 10 years, what if it was a more sinister attack

    19
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    Mute Freda Peeple
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    Dec 18th 2024, 8:11 PM

    @Alan Power: If you had any chance of getting your hole things like this wouldn’t bother you at all. Can only imagine the horror your mother faces when she cleans your room

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    Mute Alan Power
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    Dec 18th 2024, 8:15 PM

    @Freda Peeple: I share the same room with your ma, so make sure you do a bit of hoovering now and then

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    Mute Freda Peeple
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    Dec 18th 2024, 8:21 PM

    @Alan Power: Haha we all know there is only room for you and palm in the box room.

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    Mute Alan Power
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    Dec 18th 2024, 8:27 PM

    @Freda Peeple: aw, you OK, babby?

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    Mute Willie Marty
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    Dec 18th 2024, 8:36 PM

    @Alan Power: a very decent man according to three respectable witnesses and the judge.

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    Mute honey badger
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    Dec 18th 2024, 8:34 PM

    A ceremonial ‘pass the parcel’ between the parties. Personally, I’d rather see it have genuine executive powers. In the meantime, best of luck to her.

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    Mute Dermot Blaine
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    Dec 18th 2024, 8:43 PM

    @honey badger: maybe, but DCC is one of the most successful local authorities in the country, they do this largely by consensus, it’s not as partisan as national politics.

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    Mute Frank
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    Dec 18th 2024, 10:07 PM

    @Dermot Blaine: Still haven’t sorted the transport system though. No metro. For a city of that size, incredible.

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    Mute Brian Hunt
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    Dec 18th 2024, 10:51 PM

    @Dermot Blaine: Well, they’re big on Woke, but on infrastructure, they’re appalling!

    45
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    Mute Dermot Blaine
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    Dec 19th 2024, 7:42 AM

    @Frank: no, they’re not perfect by any means, but better than most

    3
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    Mute Shane Cormican
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    Dec 18th 2024, 10:25 PM

    Pink profiling she will be back for next election – good luck to her but her party will use her up and take ideals out of her

    4
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    Mute Alan Power
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    Dec 18th 2024, 11:46 PM

    The profanity towards this woman is off the scale, Sinead O’Carroll should be utterly ashamed of herself for allowing such vitriol to be vented, but of course, The Journal needs donations, no wonder, what a rag

    4
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    Mute Trump24
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    Dec 19th 2024, 2:05 PM

    At least it’s another shinner kept out of power.

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    Mute Todd Hebert
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    Dec 20th 2024, 8:56 AM

    Elected? I think you mean appointed.

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    Mute John Moore
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    Dec 19th 2024, 6:33 PM

    Nice to be able to say you were the mayor but in reality it means very little. The term is a year max and role ceremonial. Obviously a directly elected mayor would be a different ball game but is being held back because a number of people don’t want to cede any kind of control even though it would benefit the city.

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    Mute Blaney Richard
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    Dec 19th 2024, 5:16 PM

    Good god a lot of blue shirts on here!!as usual,do you lads not work?oh probably in the party,that makes sense!!freaks

    1
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