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Factsheet for measure IE-2021-42/2060 – measures in Ireland

Budget for 2022 includes a number of measures to aid recovery

Country Ireland , applies nationwide
Time period Open ended, started on 12 October 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
Author Roisin Farelly (IRN Publishing) and Eurofound
Measure added 14 October 2021 (updated 15 November 2021)

Background information

As part of the Budget for 2022 the Government has announced the extension of a number of existing COVID-19 measures as well as additional funding. It also announced a number of new initiatives for businesses and workers to assist in the recovery including tax relief for remote workers, funding for the tourism and arts and culture sectors and targeted commercial rates waver.

Content of measure

According to the Government, “Budget 2022 is providing €7 billion to support our people, our families, our communities and our businesses to respond to the challenge of COVID-19”.

Measures announced in Budget 2022 include:

  • €600 million has been provided to extend the Employment Wage Subsidy Scheme until April 2022 and €100 million to extend the Pandemic Unemployment Payment to end January 2022.
  • €800 million for the Department of Health’s continued response to COVID-19 to cover costs associated with vaccination, test & trace and PPE and the HSE Winter Plan.
  • €200 million to support the operation of public transport while demand continues to be reduced.
  • €200 million across the Tourism, Culture and Arts, Gaeltacht, Sport and Media Programmes, including support for Regional Culture Centres and the Arts Council, Business Continuity Grants to assist the hard hit tourism and hospitality sectors and Live Entertainment.
  • €250 million to tackle hospital waiting lists.
  • Income tax deduction amounting to 30% of vouched expenses for heat, electricity and broadband incurred while working from home.

Use of measure

Not yet available.

Target groups

Workers Businesses Citizens
Applies to all workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

N/A

Views and reactions

Ibec welcomed the measures introduced in the Budget. Ibec CEO Danny McCoy said: “Budget 2022 must be seen in the context of following the two largest years of fiscal expansion in the history of the State and massive supports for households and businesses.

“For those sectors worst hit by Covid in the Experience Economy the extension of the EWSS and commercial rates waiver are welcome. The additional €100 million in funding for the sector to encourage a sustainable recovery will also help to re-open parts of the Experience Economy which are still struggling.”

ICTU General Secretary Patricia King has expressed concern about the lack of recognition for low-paid essential workers in Budget 2022. “The economy clearly is in a much better position than it was this time last year. Measures proposed by ICTU and others to protect jobs over the worst stages of the pandemic, such as the TWSS, have helped to preserve the economy’s productive capacity. As a result, we are now in the early stages of what is likely to be a very strong cyclical recovery. Though we still have some way to go in suppressing the virus, Budget 2022 could be described as being the first ‘post-pandemic’ budget.”

Sources

  • 12 October 2021: Your guide to Budget 2022 (www.gov.ie)
  • 12 October 2021: Budget 2022 hits right targets and right scale within an inflationary environment (www.ibec.ie)
  • 12 October 2021: First ‘Post-Pandemic’ Budget Falls Short on preparing for future challenges (www.ictu.ie)
  • 12 October 2021: Budget 2022 – Good for Business and Good for Workers (enterprise.gov.ie)

Citation

Eurofound (2021), Budget for 2022 includes a number of measures to aid recovery, measure IE-2021-42/2060 (measures in Ireland), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/IE-2021-42_2060.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.