Child Benefit Cuts, Alcohol Increases And Student Fees Climb: Budget 2013 In Brief

The Budget 2013 announcement kicked off in the Dáil this afternoon, with Minister for Finance Michael Noonan and Minister for Public Expenditure and Reform Brendan Howlin taking their positions in reading out the taxes, cuts and public expenditure for the next year.

“We’re well on the road to recovery... after a total transformation in the last 12 months.”

Minister Noonan completed his speech with these empty words for most families across the country.

We may well be on the road to recovery, we met this year’s budget targets with a pat on the back from Europe, but how will next year's finance plan affect you on a day-to-day basis?

We have it all here.

The good news first?

Petrol and diesel will not feel the effects of the budget.

Properties bought by first-time buyers in 2013 will be exempt from the new Local Property Tax up to the end of 2016.

And now here we go...

Child benefit is down €10 a month.

VRT (vehicle registration tax) and carbon tax are both set to rise considerably. This will mean an increase in home utility bills.

There will be a 10 cent rise on beer, cider and a €1 increase on a bottle of wine

A packet of 20 cigarettes will increase in price by 10 cent. A 25g pack of roll-up tobacco will also increase by 50 cent.

From next July, maternity benefit will be treated as taxable income, but it will still be exempt from the USC (Universal Social Charge).

The VAT rate of 9 per cent will continue into next year.

Pensions, jobseeker payments, disability payments and fuel allowances will all remain the same.

Public service staff numbers will be reduced to around 287,000 in 2013, a reduction of some 33,000 from the 2008 peak of 320,000.

And another bash? Student fees are to go up by €250 in 2013, 2014 and again in 2015.