Government to Consider Phased USC Rate Reduction Over Budgets

Junior Minister Christopher O’Sullivan stated the government will consider lowering the Universal Social Charge (USC) rate on a phased basis over forthcoming budgets. This follows Sinn Féin leader Mary Lou McDonald calling for USC to be scrapped as part of an emergency budget.

McDonald, during her leader’s address at the party’s Ard Fheis in Belfast, also proposed substantial cuts to fuel excise, including removing carbon tax on home heating oil and green diesel. Her emergency budget plan included a €400 energy credit, a €500 cost of disability payment, and additional support for social welfare, pensioners, child benefit, and fuel allowance.

O’Sullivan, a Fianna Fáil TD, criticized Sinn Féin’s fiscal approach, noting their proposals to scrap taxes while funding a large budget. He confirmed that the government has previously adjusted USC brackets, providing relief, and intends to continue this in future budgets. USC, introduced in 2011 as a temporary measure, applies to gross incomes over €13,000, with rates from 0.5% to 8%, and 11% for self-employed income over €100,000.