Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy will be aware, Budget 2022 included a significant tax package amounting to a cost of €520 million.    This included a substantial income tax package comprising of an increase of €50 in each of the main tax credits – personal tax credit, employee tax credit and the earned income credit – from €1,650 to €1,700.  An increase of €1,500 in the income tax standard rate band for all income earners was also introduced. Furthermore, the 2% rate band ceiling for USC was also increased for 2022 in line with the increase in the national minimum wage to ensure that a full-time adult worker who benefits from the increase in the hourly minimum wage rate of €10.20 to €10.50 will remain outside the top rates of USC. Further details can be located at the following link: www.gov.ie/en/publication/7e491-taxation-measures/.    

Having regard to the fiscal demands and pressures facing the State in 2022, it was not possible to increase all tax credits and remain within the fiscal parameters. However, the tax changes introduced in Budget 2022, will benefit all income earners who pay income tax, including those persons in receipt of the Single Person Child Carer Credit, and are aimed at helping taxpayers at a time when prices are rising.   I would also note that those in receipt of this credit may also have entitlement to an increased standard rate band each year which is €4,000 higher than that which applies to a single person who is not entitled to the credit.

In all the circumstances, I am satisfied that the Single Person Child Carer Credit in its current form is appropriately calibrated at present and there are no immediate plans to review or amend the relief.