Changes in USC benefit some, but unpopular tax set to stay

For a tax that was introduced as a temporary measure, the USC has become a budgetary fixture that shows little sign of disappearing.

The budget announcement of changes to how the Universal Social Charge is levied has received a broad welcome, but for many the recovery will only really be complete when it drops off payslips for good.

In 2009, then finance minister Brian Lenihan signalled his intention to combine PRSI, the health levy, and the income levy into a single social charge that would be applied to all income, but at a lower rate. In October 2010, research by the Economic and Social Research Institute (ESRI) said a 7.5% charge could raise enough money to replace all three — but with a warning that it would hit the poor hardest of all.