SEÁN KENNY TD
BUDGET NEWS Dublin Bay North
Winter 2013
This is the Budget that will take us out of the bailout. It will underpin recovery and help to create more jobs. And this Budget does everything possible for hard pressed families – pointing the way to a better future. When this Government came into office, 31 months ago, our Country was faced with the worst economic crisis in its history. Our economic sovereignty had been surrendered, and without the bailout loans, there was five months money left to pay for all public services, and no-means to borrow any more. Today, that situation has been transformed. Financial Stability has been restored. The State can again borrow at affordable rates, and we are in a strong position to exit the programme at the end of the year. This budget copper-fastens the stability that has been so hard won. There have been some difficult choices. After five years of cuts, there are no easy options left. But we have now come through the worst economic crisis in the history of this State. The people of Ireland have endured much, but we are now, at last, on the threshold of recovery. If you have any questions on any of the measures introduced in the Budget, or on any other issues, please do not hesitate to contact me.
Seán Kenny TD
PROTECTING EDUCATION CLASS SIZES PROTECTED – 1,400 NEW TEACHERS IN 2014 Education has always been a core priority for the Labour Party, and this budget demonstrates our commitment to protecting frontline education services. This is the third budget from this government, and for the third year in a row, there have been no increases in class sizes. The standard pupilteacher ratio in both primary and post-primary schools has been protected. The €1.3 billion provided each year to support children with special needs has also been protected for 2014. We will be recruiting an additional 1,400 teachers to our schools next year – two-thirds as mainstream teachers, and one-third as resource teachers to support children with special needs. This brings the total number of new teachers recruited in our schools to 2,800 between this year and next year.
REDUCING THE COST OF GOING TO SCHOOL
INVESTING IN SCHOOLS
■ BOOK RENTAL SCHEME - €5 million will be provided for each of the next 3 years to invest in book rental schemes in every primary school in Ireland. These schemes can save parents as much as 80% of the cost of school books, bringing the average cost down from €100 per child to €20 per child. ■ SCHOOL UNIFORMS – Minister for Education Ruairi Quinn is working on a policy that will require all schools to give parents control over the cost of uniforms.
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■ SCHOOL BUILDING PROGRAMME – Since taking office, the Government’s School Building programme has seen 2,700 new classrooms built, for over 66,000 children, at a cost of €600m. The 2014 building programme will continue this momentum, with a further €400m to be spent upgrading our schools. ■ BROADBAND – All second level schools will have access to high-speed broadband, at no cost to them, by September 2014. ■ LITERACY & NUMERACY – A further €9m will be invested in literacy and numeracy programmes to ensure no child leaves school without high levels of literacy and numeracy.
Budget 2014
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FREE GP CARE FOR CHILDREN AGED 5 AND UNDER
CHANGES TO MEDICAL CARDS CRITERIA The income threshold for qualification for a medical card for the over 70’s has been reduced. A single person, aged over 70, with an income in excess of €500 per week, or a couple with income in excess of €900 per week, will now qualify for a GP card, rather than a full medical card. This measure will require legislation. It is intended that this legislation will be in place by early 2014, with reassessments taking place at that stage. It is estimated that this change will affect 35,000 people. 93% of people aged over 70 will still qualify for free GP care.
In this budget, we are taking the first step on the way to achieving universal access to GP services without fees, with the introduction of free GP care for children aged 5 and under. Universal access to GP care is a key policy objective of the Labour Party, and it forms an essential element of our primary care strategy – ensuring that more people have their health managed in the community, rather than in more expensive hospital settings not only saves money in the short term, it also means that people live healthier lives, reducing costs to the health service in the long term. We are starting with children as there is extensive evidence that young children and the elderly constitute public health priority groups. 93% of people aged over 70 already have access to free GP care, and this will not change under this budget. If your child is aged 5 or under, they will be able to access GP care at absolutely no cost to you. This measure requires the introduction of legislation, which is currently being drafted by the Department of Health.
PRESCRIPTION CHARGES From 1st December 2013, the cost per prescribed item for people with medical cards will be €2.50, with a cap of €25 per month per individual or family. There has been no change to prescription costs under the Drugs Payment Scheme for those without medical cards.
SOCIAL PROTECTION The Department of Social Protection will spend €19.6 billion in 2014 on a wide variety of payments and programmes. Budget 2014 has protected the core welfare rates for all 1.45 million current beneficiaries. Child Benefit, the Fuel Allowance, Free Travel and Carer’s Allowance are being maintained in full.
JOBSEEKER’S ALLOWANCE
TELEPHONE ALLOWANCE
Reduced rates of Jobseeker’s Allowance will apply to new claimants under the age of 26 from January 2014. New claimants under 26 who qualify for Jobseeker’s Benefit through their PRSI contributions will not be affected by this measure.
From January 2014, the Telephone Allowance of €9.50 per month will be abolished for new and existing recipients.
Jobseekers aged 18-25 who participate in education or training programmes can receive up to €160 per week. The Department of Social Protection will be spending an extra €85 million on these programmes next year, bringing the total spend to €1.08 billion. Current Rates
The Government is currently examining the Senior Alert Scheme, which provides grant assistance for monitored personal alarms for older people, to see if it will require additional resources in the absence of the telephone allowance.
Rates from January 2014
Maximum personal rate 25 years or older
€188
Maximum personal rate 26 years or older
€188
Maximum personal rate 22-24 years
€144
Maximum personal rate aged 25
€144
Maximum personal rate 18-21 years
€100
Maximum personal rate aged 18-24
€100
CREATING LOCAL JOBS ENCOURAGING ENTREPRENEURSHIP We want to encourage and help people who are long-term unemployed to start their own businesses. That is why we have introduced the ‘Start Your Own Business’ scheme, which will provide for a two year exemption from income tax, up to a maximum of €40,000 per annum, for people who had been unemployed for at least 15 months prior to starting their own business. This will help people to get their enterprise ideas up and running, encouraging entrepreneurship and innovation. The Budget also provides other supports to new businesses, such as the provision of training programmes, an increase in the threshold for cash VAT receipts, an increase in the threshold for applications to the Credit Review Office, and an initiative to ensure there is greater awareness among Small and Medium Enterprises of available State supports.
HOME RENOVATION INITIATIVE Tax relief of up to 13.5% will be available for families who invest in their homes in 2014 and 2015. The Home Renovation Initiative is designed to incentivise renovations and increase demand for small construction jobs. The relief will be given as a tax credit over two years on spending of €5,000 up to a maximum of €30,000. The work must take place in your principal private residence. The scheme will only apply to registered builders with tax clearance certificates, in order to help tackle the shadow economy. Work covered under the scheme includes extensions, renovations, window fitting, plumbing, tiling and plastering. The scheme will be active from October 2013.
LIVING CITY INITIATIVE The Living City Initiative is intended to encourage people back to living in the centres of Irish cities and to encourage the refurbishment of the retail heartland of central business districts. The initiative was launched in 2012 in Waterford and Limerick for Georgian buildings alone, but has been extended to all residences built prior to 1915 in Cork, Galway, Kilkenny and Dublin as part of this year’s budget. Residents will be able to claim tax relief over a ten year period for the cost of refurbishment works.
EXTRA FUNDING FOR HOME HEATING GRANTS A further €30m has been secured under the Government’s Stimulus Package increasing investment in the Better Energy and Warmer Home energy efficiency schemes to a total of €57m. These schemes fund energy efficiency improvements by householders and local authorities, as well as upgrades in the homes of the elderly and vulnerable, making homes more comfortable, healthier and more cost effective to run. The schemes also benefit the economy by creating jobs in the construction sector. 32,000 homes are expected to benefit from upgrades under these schemes in 2014, bringing the total number of homes to benefit to 290,000 since they were launched in 2011. If you are a homeowner in receipt of fuel allowance, contact 1800 250 204 or warmerhomes@seai.ie for further details. If you are a homeowner, residing in a house built prior to 2006, contact 1850 927 000 or info@betterenergyhomes.ie for further details.
PROMOTING TOURISM The Tourism and Hospitality Sector is a key area of growth in the Irish economy, and it is important that we continue to build on the success of initiatives such as The Gathering. To this end, Budget 2014 has introduced three initiatives designed to encourage the growth of the sector. ■ 9% VAT RATE The 9% VAT rate for tourism-related goods and services has proven successful in attracting visitors. The decision to retain this rate, rather than to abolish it at the end of this year as originally planned, will help to support many of the businesses in Dublin who work in the tourism industry. ■ AIR TRAVEL TAX The reduction of the Air Travel Tax to zero will encourage new routes, deliver new visitors and create more jobs in tourism. It will come into effect on 1st April 2014. ■ FILM RELIEF SCHEME Budget 2014 has expanded the film relief scheme to non-EU citizens. This will help attract even more film and television productions to Dublin, which will in turn attract more tourists.
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Seán Kenny TD
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WORKING WITH YOUR LOCAL LABOUR TEAM
Aodhán Ó Ríordáin TD
Emer Costello MEP
Dáil Eireann, Dublin 2 01 6183209 aodhan.oriordain@oir.ie
086 837 5219 01 874 6109 emer.costello@europarl.europa.eu horganjones.jane@gmail.com
Cllr. Jane Horgan Jones
Cllr. Brian McDowell
Cllr. Judy Dunne
Brian McDonagh
087 222 1628 brian.mcdowell@labour.ie
087 6178557 judy.dunne@fingalcoco.ie
086 3858979 brianmcdonaghlabour@gmail.com
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