What's in Budget 2024 for workers, renters, families, and welfare recipients?
There is expected to be across-the-board increases to social welfare.
With just hours before Budget 2024 is announced, the three Government leaders will this evening sign off on the final package of tax cuts, spending increases as well as cost-of-living payments. Here's some of what can be expected:
Households are to receive three energy credits of €150 each as part of a cost-of-living measures to be announced under Budget 2024.
People in receipt of supports including carers allowance, disability allowance and the fuel allowance will all get a €400 bonus, while parents are to get a double child welfare payment before Christmas.
Under one of the last items to be agreed by Government leaders, mortgage holders will receive up to €1,250 in tax relief on interest paid.
Around 208,000 mortgage holders on tracker and variable rates will be eligible for the once-off payment. The support will be calculated by comparing mortgage rates in 2022 compared to this year and will see homeowners receive 20% interest relief on interest paid.
In a significant victory, Children's Minister Roderic O'Gorman has secured a 25% reduction in childcare fees, bringing the total cut to 50% after a similar move last year. However, given the cost of introducing such a measure, it is expected that parents won't see the reduction applied until around September of next year.
Following on from last year, parents can expect a double child welfare payment before Christmas.
However, the monthly core rate of €140 a month is unlikely to change.
Free school books will be extended to second-level students following the rollout across primary schools this September.
The understands the expansion of the free school book scheme will kick in for the next academic year and will impact 200,000 parents across the country.
Free school books will be provided for first-year, second-year and Junior Cycle pupils, sources have said.
A well-flagged measure is the change to the threshold at which workers enter the higher rate of income tax. This is expected to increase from the current €40,000 to around €42,000. Workers will also see movement on the Universal Social Charge (USC).
However, PRSI could be increased by 0.1% from January, which would see the average worker pay 90c more each week.
There was some surprise last year when the Government decided against tax measures for landlords. What is now being described as a "modest" tax relief for small landlords, will be included in this year's budget.
Landlords will have to keep properties in the rental market for four years in order to avail of a tax credit.
The size of the income tax deduction has not yet been finalised by Finance Minister Michael McGrath, but a senior source said that it would be "modest". If a landlord opts to sell the home within the timeframe, they would be liable to repay the credit.
A tax deduction has emerged as the preferred option after a proposal which centred around the Capital Gains Tax paid on properties was thought to be unworkable.
Housing Minister Darragh O'Brien has been strongly pushing for a doubling of the €500 credit for renters. While Mr O'Brien may not get the full €1,000 credit across the line, sources have stressed that the support must be increased to at least €760 to reflect current average rents. It could end up at around €800.
The Government is to announce temporary mortgage interest tax relief worth up to €1,250 for around 208,000 homeowners in the budget.
The measure will be time limited and likely to just for 2024 and those on tracker mortgages and variable rates.
Renters are set to see an increase in the rent tax credit to €750 in the budget, the Irish Examiner understands. This is an increase of €250 on last year’s announcement which saw tenants across the country accessing a rent credit worth €500.
The Government will also incentivise landlords to stay in the market with a tax break of between €600-€1,000. However, landlords who want to avail of the credit will have to remain in the rental market for four years, it’s understood.
The move by the Coalition is to try and keep supply of properties in the market to address the housing and rental crisis.
Landlords will be given a "modest" tax break, sources said, with income of €3,000 taxed at 20% in 2024, increasing to €4,000 in 2025 and €5,000 in 2026 and 2027. The measure was expected to cost up to €48 million in 2024.
Social Protection Minister Heather Humphreys has confirmed there will be across-the-board increases to social welfare.
Coalition leaders have tonight signed off on a €12 across-the-board increase to all social welfare, which includes pensioners and those in receipt of carers allowance.
It is also expected that those in receipt of disability allowance and carers allowance will receive a lump sum payment, but this is not expected to be the €500 provided last year.
Others who will receive bonus payments — that are again likely to be lower than the rate awarded last winter — are people who are entitled to fuel allowance and the living alone allowance.
The budget allocation for the Department of Health has been agreed, with any extra funding set to go towards addressing both inflation and increased patient intake at the HSE.
A spokesperson for Health Minister Stephen Donnelly said: “The budget allocation for Health has been finalised and the allocation will be focused on dealing with continued high inflation and increased patient demand.”
It is understood that the bulk of the funding will go towards maintaining the status quo at the health service, with no new measures expected to be implemented. This is due to increasing costs within the health service, particularly the high cost of energy and surgical supplies.
The allowance paid to trainee gardaí will rise by two thirds, up from the current weekly rate of €184 to €305.
An extra 1,000 gardaí were promised in last year's budget, but it is now expected that between 700 and 800 will come on stream due to recruitment issues.
It is hoped that upping the payment that recruits receive across their 33 weeks of training will entice more people into the force.
The 20% discount on public transport fares will be retained for at least another year and €1m each day will be allocated to active travel projects again in 2024.
It is understood that the 50% fare cut for young people will be extended out to 25-year-olds.
The measure, which applies on public transport as well as some commercial bus services, will allow anyone under the age of 26 apply for a Young Adult Leap card.
The previous 20% cut to public transport fares, introduced last May, will also remain in place.
The price of a packet of cigarettes will rise, likely to be either 20c or 50c, but there will be no increase to the price of alcohol.
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