Lower taxes on energy, more child benefit: What changes on July 1
A few financial changes come into effect on July 1. Here’s a round-up of the main things you might notice.
Energy taxes go down
Value-added tax (btw) on energy will go down from 21% to 9%, to help households faced by steep rises in electricity and gas prices. The reduction will remain in place until the end of the year at least. The change will cut around €140 off the average bill over the six months.
However, not all energy companies will make the change and some will offset the cut against higher costs at the end of the year, so you might not notice the difference yet.
Landlords can put the rent up
If you live in free sector housing – that means your rent is more than €763 a month – your landlord can put your rent up by 3.3% in July.
Housing corporations, which froze social housing rents last year because of the coronavirus crisis, can also again ask tenants for more money – and this year the official rise is put at 2.3%. However, housing corporation umbrella group Aedes estimates that the average increase will be 2%.
Child benefits will rise
The government had been planning to freeze child benefits this year but had a change of heart because of high inflation. Instead parents will get an extra €20 per child per quarter. That means a payment of €249 for the under sixes, €302 for the six to 11 age group, and €356 up to the age of 18.
You will only notice the increase in the October 1 payout.
Minimum wage goes up slightly
The minimum wage will rise by 20 cents an hour for the over 20s working a 36 hour week – that means a new basic hourly rate of €11.26. Next year, however, the increase will be a more substantial because the government has pledged a 7.5% rise by 2025, when the minimum rate will have reached €13.18.
Social security benefits will also rise from July 1. Check out by how much here.
Freelancers will get paid more quickly
Freelancers and small firms which carry out work for large third parties will have to be paid within 30 days, rather than the current legal maximum of 60 days.
From July 1, all floors in a home must be fitted with a smoke alarm, libraries will be free for the under-19s and so-called influencers will have to be clear about sponsorship and payment for the products they promote.
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