€3.8 BILLION HOUSING INVESTMENT
A MESSAGE FROM SEÁN SHERLOCK TD
In Budget 2015, investment in the building of new family homes is a priority: ■ €3.8 billion has been allocated for housing provision under an unprecedented multi-annual plan. ■ In 2015 alone, over €800 million has been allocated for the housing programme– the first major investment in housing since 2009 and a 40% increase in spending on 2014 levels. ■ This dramatically increased investment will deliver 7,500 family homes in 2015 and a total of 40,000 family homes by 2020. ■ Spending on homelessness services will increase by over 20% to €55 million.
BUDGET 2015: PRIORITISING WORK Budget 2015 provides an extra €3 billion in resources for the domestic economy. This will help to drive the already strengthening domestic economic recovery and support an additional 50,000 jobs next year, with unemployment set to fall further to 10% by the end of 2015. ■ To support the successful Pathways to Work programme in 2015, €1.6 billion will be made available to provide approximately 300,000 work and training places. ■ €12 million has been allocated for the JobPath initiative which matches the long-term unemployed with appropriate training and employment opportunities. ■ The number of JobsPlus positions has been doubled to 6,000 with a focus on young unemployed people.
PROTECTING EDUCATION 1700 NEW TEACHERS AND SNAS
The economy is growing and unemployment is falling. The first phase of the recovery is complete and we are now starting the second: restoring living standards for families, older people, and low and middle-income workers. The last few years have been difficult as the economic recovery begins to take hold it is important that the fruits of that recovery are shared in an equitable manner. That is why under Budget 2015, we are delivering a package of measures that primarily benefits low and middle income earners, working families and vulnerable groups. Labour has ensured this through reduced taxes for middle and low-income workers and targeted increases for a number of key supports, such as Child Benefit and the Living Alone Allowance. We are also ensuring significant investment in key public services including housing, education and health.
A guide to tax & entitlements
This is in addition to our ongoing unrelenting focus on job creation and helping jobseekers get back to work. Inside are details on some of the important Tax and Social Welfare measures that will help you and your family. If you need any assistance on this or any other matter please do not hesitate to contact me.
2015
Investing in education is a key Labour priority and in Budget2015 we have ensured that the improving economicsituation will help enhance education services:
■ New Teachers & SNAS: An investment of €88m in 2015 will ensure 1700 new teachers and
SEÁN SHERLOCK TD
SNAs will be employed in our schools during 2015. There will be 900 new classroom teachers in primary and second-level schools, 480 resource teachers and 365 SNAs.
■ Class Sizes: For the fourth year in a row, Labour has protected the class sizes in our schools.
Minister for Development, Trade Promotion and North South Co-operation
■ Back to School Costs: A second tranche of €5m will be provided in a three-year additional
investment in schoolbook funding for our primary schools, on top of the €15m already invested each year
Constituency Office: Davis (Flemings) Lane, Mallow, Co. Cork Tel: 022 53523 Fax: 022 57761 Email: sean.sherlock@oir.ie
■ Free Broadband for schools: We are investing €3m to ensure the high-speed broadband which has been installed in all post-primary schools is available to them free of charge
Minister for Development, Trade Promotion and North South Co-operation
Sean Sherlock TD
■ Early Childhood Education: Under Budget 2015, we will spend €600,000 on the immediate recruitment of thefirst ever team of early childhood education inspectors to greatly improve the quality of early childhood education.
SEÁN SHERLOCK TD
@seansherlocktd
Constituency Office Davis (Flemings) Lane, Mallow, Co. Cork Tel: 022 53523 Fax: 022 57761 Email: sean.sherlock@oir.ie
Working with
Pensioners have made a very significant contribution to supporting and developing economic recovery over recent years. The 0.6% Pension levy was introduced to help fund the Jobs Initiative and clearly played an important role in the positive jobs’ trend with 72,000 new jobs having been created since the peak of the crisis in 2012.
CLLR CATHAL RASMUSSEN
CLLR NOEL MCCARTHY
As a result of the recent emerging economic recovery, the 0.6% Pension Levy will end in 2014 and the additional 0.15% Pension Levy will expire at the end of 2015.
086 8878421 cathal.rasmussen@gmail.com
086 3751736 noelmccarthy28@hotmail.com 0612
ENDING THE PENSION LEVY
BACK TO WORK FAMILY DIVIDEND
TAX & USC TAX RELIEF FOR LOW AND MIDDLE INCOME EARNERS
STATE PENSION PROTECTED There will be no change in the rates of the weekly state pensions or other payments for those aged over 66 such as the fuel allowance, free travel and TV allowance.
Under Budget 2015, an extremely progressive tax package has been secured that focuses the relief on those who most need it - low and middle-income workers. Tax is being reduced for low and middle-income earners to ensure that those at work take home more and begin to benefit from the recovery. This is a significant step forward in targeting reliefs at low and middle income earners and ensuring that, proportionately, they gain the most. The changes are outlined in the tables below. 2014
PROTECTING OLDER PEOPLE
STATE PENSION (CONTRIBUTORY)
2014
2015
Under age 80*
€230.30
€230.30
Aged 80 and over
€240.30
€240.30
Weekly Personal Rate
STATE PENSION (NON-CONTRIBUTORY) Under age 80*
€219.00
€219.00
2015
Aged 80 and over
€229.00
€229.00
20%
41%
20%
40%
Other Social Insurance and Assistance payments for widows, widowers, surviving civil partners, deserted wife’s benefit and the blind pension are unchanged.
Single person
€32,800
Balance
€33,800
Balance
*There was no change on the applicable qualified adult or child rates
One parent family
€36,800
Balance
€37,800
Balance
Married couple/ civil partners, one income
€41,800
Balance
€42,800
Balance
Married couple/ civil partners, two incomes
€41,800 @ 20% with increase of €23,800 maximum
Balance
€42,800 @ 20% with increase of €24,800 maximum
Balance
The Back to Work Family Dividend is a new incentive under Budget 2015 to help jobseekers with families return to work, while retaining the child-related portion of their social welfare payment on a tapered basis over two years. This includes those who move to self-employment, such as back into the construction sector, and those on One Parent Family Payment. The scheme will be worth €1,550 per child in the first year of employment or self-employment and half that amount again in the second year.
UNIVERSAL SOCIAL CHARGE
SOCIAL WELFARE
STANDARD RATE 2014
CORE WEEKLY PAYMENTS PROTECTED AGAIN
2015
Income band
USC rate
Income band
USC rate
Up to €10,036
2%
Up to €12,012
1.5%
Between €10,036 and €16,016
4%
Between €12,012 and €17,576
3.5%
Between €17,576 and €70,044
7%
Above €16,016
7%
Above €70,044
8%
In Budget 2015, for the first time in many years there will be an increase in spending of €200 million of targeted increases in certain payments, and new incentives to help people back to work. It also means that we have been able to protect the core weekly rates of payment once again.
■ People aged over 70 with an income of €60,000 or less (excluding Department of Social Protection payments) per year. ■ People aged under 70 who hold a medical card and whose income is €60,000 or less (excluding Department of Social Protection payments) per year. 2015 Rates
Income band
1.5%
Up to €12, 012
3.5%
All income over €12,012
HOUSEHOLD BENEFITS PACKAGE - The Household Package Electricity/Gas Allowance and the eligibility for a free TV Licence remain unchanged. LIVING ALONE ALLOWANCE INCREASE The Living Alone Allowance will increase by €1.30 per week, bringing the rate up from €7.70 to €9. This is the first increase in this payment since 1996, and will benefit over 177,000 people. This increase will provide for a greater level of income adequacy for both pensioners and people with disabilities living alone.
CARER’S ALLOWANCE PROTECTED
2014
2015
CARER’S BENEFIT (PRSI based)
2014
Personal Rate*
€188
€188
Caring for 1 person up to 2 years
€205
€188
2015 €205 Maximum weekly rate
CARER’S ALLOWANCE (Means tested)
Maximum Weekly Rate
26 years or over*
Reduced rates of USC apply to
FUEL ALLOWANCE – continues to be paid at a weekly rate of €20 for 26 weeks (6 months). Fuel Season for 2014/15 will end on 6th April 2015.
JOBSEEKERS BENEFIT
JOBSEEKERS ALLOWANCE
REDUCED RATE
STATE PENSION (CONTRIBUTORY) RATES – the full breakdown of personal rates applicable to your yearly average PRSI contributions is available on www.welfare.ie or from any Citizens Information Office.
€188
Under 66, caring for 1 person
€204
€204
€306
€306
25 years of age
€144
€144
Under 66, caring for 2 or more
18-24 years of age
€100
€100
66 or over, caring for 1 person
€239
€239
Aged 80 and over
€358.50
€358.50
*No Change on increase for qualified adult (€124.80) or qualified child (€29.80)
New claimants with 260 or more contributions will be paid Jobseekers Benefit for 9 months. Those with less than 260 contributions will be eligible for 6 months payment. The means test for Jobseekers Allowance has not been changed.
Half-Rate Carer’s Allowance paid at 50% of above rates. There was no change on the applicable qualified adult or child rates.
CHILD BENEFIT INCREASED
■ Weekly payment rates to carers maintained in Budget 2015, and full time carers in receipt of
What are the new rates of Child Benefit?
■ The Annual Respite Care Grant has been kept at €1,325 for 2015.
another welfare payment are still eligible for half rate Carer’s Allowance.
■ Carers who live with the person they care for continue to be eligible for the Household benefits
PROGRESSIVE INCOME TAX & USC SYSTEM
From January 1st 2015, families will be entitled to the following new rates of Child Benefit: Number of Children
21%
OF TAX
PAID BY THE
44%
OF TAX
PAID BY THE
80%
OF TAX
PAID BY THE
TOP 1% TOP 6% TOP 24% OF EARNERS OF EARNERS
OF EARNERS
2015 Monthly Rate
2015 Annual rate
Yearly Increase from 2014
1 child
€135.00
€1,620.00
€60.00
2 children
€270.00
€3,240.00
€120.00
3 children
€405.00
€4,860.00
€180.00
4 children
€540.00
€6,480.00
€240.00
5 children
€675.00
€8,100.00
€300.00
6 children
€810.00
€9,720.00
€360.00
package and free travel pass. The payment is not taken into account in the assessment for a medical card.
BACK TO WORK FAMILY DIVIDEND The Back to Work Family Dividend is a new incentive under Budget 2015 to help jobseekers with families return to work, while retaining the child-related portion of their social welfare payment on a tapered basis over two years. This includes those who move to self-employment, such as back into the construction sector, and those on One Parent Family Payment. The scheme will be worth €1,550 per child in the first year of employment or self-employment and half that amount again in the second year.