Budget talks go 'down to the wire' as PRSI increase undecided

Coalition leaders have yet to decide on budget issues including increasing PRSI. Picture: iStock

Tense budget meetings are going “down to the wire” as Coalition leaders have yet to decide on issues such as increasing PRSI from January.

Taoiseach Leo Varadkar has said households will get help with their electricity bills over the winter months, with energy credits expected again this year.

The Irish Examiner  reported earlier this week that the Government may decide to increase PRSI in 2024, with a source stating it had yet to be decided upon as talks continue into the weekend before Tuesday's budget.

The Government has flagged that the decision to keep the pension age at 66 means gradual increases to PRSI will be needed to top up the pot for future pensions.

Bilateral meetings were continuing last night, with Transport Minister Eamon Ryan holding talks about issues in his department. 

Mr Ryan is said to be pushing for an increase in spending to boost the use of public transport.

Transport Minister Eamon Ryan is thought to be pushing for an increase in spending to boost the use of public transport. Picture: Gareth Chaney/ Collins Photos

Speaking in Spain, Mr Varadkar said: “Electricity prices have fallen, but they’re still substantially higher than they would have been two winters ago. We understand that as a Government. We have the money to help people with those bills, and we will.

The detail of that hasn’t been worked out, but what I can say is that people will get help with their electricity bills over the course of the winter.

It is understood that Integration Minister Roderic O’Gorman is pushing for an increase in the foster-care allowance, but he played down the prospect of a further 25% cut to childcare, following last year's cut.

The Green Party TD said that while cutting costs for parents would be a priority for him, other issues will be examined and "they all come at a cost".

"I've set out very clearly what my aim is in the budget next year. It's to continue to cut costs for parents, but I have other objectives as well in terms of broadening access to childcare for children with disabilities, and bringing childminders into the system so that parents who use childminders can benefit there as well.

Integration Minister Roderic O’Gorman is understood to be pushing for an increase in the foster-care allowance. Picture: Niall Carson/PA Wire

"So that's a range of objectives and all have a cost, all are really significant investments in supporting parents and supporting children. 

There's some more work to be done over the next number of days. But I hope on budget day next week, we'll be able to continue our progress in reducing the cost of childcare for parents.

At the same event, junior transport minister Jack Chambers said that discussions were ongoing around whether public transport fares would be cut by 20% on a permanent basis.

Speaking in the Seanad on Thursday, Fine Gael junior minister Jennifer Carroll MacNeill said she was aware that Mr O’Gorman was attempting to secure an increase to the foster-care allowance in Tuesday’s budget. 

She said foster carers have also raised concerns about a number of issues relating to supports under the remit of the Department of Social Protection, including the back-to-school clothing and footwear allowance.

She was responding to Fianna Fáil Senator Malcolm Byrne, who pointed out that payments for foster carers have remained unchanged since 2009. A foster parent is paid €325 per week for children under the age of 12 and €352 for those aged 12-plus.