Budget will see change to income tax threshold as part of cost-of-living package

Michael McGrath said it should always "pay to work" and the majority of people who are able to work want to. File picture: PA 

Income tax thresholds will be changed as part of the Budget to help lower and middle-income workers, the Minister for Public Expenditure has confirmed.

Michael McGrath has said that keeping the current tax bands in place would amount to an effective cut in wages for workers.