Families to feel effect of budget measures

FAMILIES face a raft of new charges and stealth taxes this week with the introduction of measures agreed in the budget.

Increased health insurance costs, higher public transport fares and a hike in VAT will all also hit consumers, as people struggle to cope with revenue-raising measures signed off on by the Coalition.

It is has been estimated that the average family could be up to €2,000 worse off as a result of what are now been deemed the “dirty dozen” New Year hikes.

Family finances will also face pressure as a result of benefit cuts.

Some 1.6 million households must pay a new €100 charge for properties, a levy which will face strong opposition over the coming weeks. The charge must be paid before the end of March.

Consumers will also pay a higher value added tax (VAT) rate of 23%, which came into effect yesterday.

Fianna Fáil have argued that this measure alone — which the Government hope will raise some €670m — could affect consumer shopping patterns and even cause further job losses.

Health insurance costs are also rising, with Quinn Insurance pushing its up by 22% and Aviva by 15%. This could cost the average family up to an extra €400 a year, say some estimates.

Rural communities will also suffer further pain with the roll-out of a €50 septic tank charge this year.

Nearly all modes of transport will require higher costs. Fare rises came into effect yesterday on all Iarnrod Eireann, Dublin Bus, Bus Eireann and Luas services with hikes of between 3% and 15% for tickets.

Railway parking charges have risen by €1 to €3 while motorists will be hit by higher tolls on motorways and with a mix of motor tax hikes.

Families also face a rise in the cost of school transport charges as part of the revenue-raising measures.

Third level registration fees are also being hiked up by €250 this year, increasing the cost of sending a student to college.

A higher carbon tax will also push up the price of heating oil and gas from May.

Not even savers will escape the austerity and budget measures with the rate of DIRT rising by 3% to 30% for banking customers.

Savings needed by the government, which will rake in €3.8 billion in taxes and cuts, will even hit the less well-off and more vulnerable.

Child benefit has been reduced and will see a family with three children down €228 over the course of this year while a four-child family will lose €432.

Fuel allowance for those on social welfare as well as the elderly is also being reduced.

Families who must purchase many medicines will also have to fork out the first €132 a month for their items as opposed to €120 previously under the drug payment scheme.