Budget 2012 Summary - Part I

Budget 2012 Summary - Part I

Below are the main points from the first part of Budget 2012 announced by Minister Brendan Howlin today (5 Dec 2012)
 

(for those running a business, there will be a special BUDGET 2012 Taxation seminar on 16 Dec)

• Phase out entitlements to higher rates for third and subsequent child over two years.
• Child Benefit: Discontinue one-off grants in respect of multiple births.
• BACK TO SCHOOL ALLOWANCE: Raise the age at which a child qualifies from 2 to 4 years
• BACK TO SCHOOL ALLOWANCE: Reduce rates of payment from €305 to €250 and from €200 to €150
• DISABILITY ALLOWANCE: Raise qualifying age for entitlement for new claimants to 18
• DISABILITY ALLOWANCE: Align rates with jobseekers allowance for those aged 18 to 24
• ONE PARENT FAMILY PAYMENT: Entitlement restricted to cases where youngest child is 7 years old over the period to 2014
• ONE PARENT FAMILY PAYMENT: Reduce over 5 years the earnings disregard from €146.50 to €60 per week
• REDUNDANCY AND INSOLVENCY SCHEME: Reduce employer rebate from 60% to 15%
• FUEL ALLOWANCE: Reduce fuel season by 6 weeks from 32 to 26 weeks for new and existing recipients
• CE SCHEMES, BACK TO ED. ALLOWANCE: Reduce training and materials from €1,500 to €500 per participant per annum
• CE SCHEMES, BACK TO ED. ALLOWANCE: Reduce the annual cost of education allowance to €300
• STATE PENSION: Provide for new claimants new payment rates where yearly average number of contributions & credits less than 48
• STATE PENSION: Increase minimum number of contributions required to qualify for widow pension from €156 to €520 in July 2013
• DRUG PAYMENT SCHEME: Increase Drug Payment Scheme threshold by €12 from €120 to €132
• HEALTH SAVINGS: Total savings in Health of €543 million
• HEALTH / JOBS: Reduce numbers and contain pay in health service to save €145 million
• PRIVATE/PUBL:IC BEDS: Changes in beds and collection of outstanding revenue to save €143 million
• SCHOOL GRANTS: Reduction in capitation grants to schools by 2%
• COLLEGE REGISTRATION FEES: Increased contribution from 3rd-level students of €250
• POSTGRAD GRANTS Changes to fee and maintenance supports for NEW postgraduate students
• POSTGRAD GRANTS: Reducing maintenance grants GENERALLY will deliver savings of €12.6 million
• PRIVATE FEE PAYING SECONDARY SCHOOLS Increase in pupil teacher ratio from 20:1 to 21:1 in next school year
• Reduce to €40 allowances to 16-17 yearolds on Youthreach, Community Training and Fás courses from 2012
• YOUTHREACH Reduce to €40 allowances to 16-17 year-olds on Youthreach, Community Training and Fás courses from 2012
• STUDENT GRANTS: 3% reduction in rate of student maintenance grant Introduction of a capital asset test from 2013
• SCHOOL TRANSPORT: Double the primary school child charge from €50 to €100
• RESOURCE AND MEDIATION SERVICES: Reduce funding for family resource centres by 5%
• RESOURCE AND MEDIATION SERVICES: Reduce family mediation service by 5%
• DEFENCE FORCES: Reduce Defence Forces personnel and other non-pay reductions to achieve savings of €17 million
• LOCAL GOVERNMENT: Reduce the local and community development programme by €8 million
• OVERSEAS AID: Cuts of €53 million to overseas aid budget
• GARDA BUDGET Cuts to payroll, pensions, overtime, travel & subsistence & maintenance of garda stations to save €79 million
• AVIATION: Reduce funding for regional airports and miscellaneous services to save €5 million
• REGIONAL AND LOCAL ROADS: Discontinue funding for Local Improvement Scheme for non-public roads in 2012