What's in Budget 2024 for workers, renters, families, and welfare ...

9 Oct 2023

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:

Budget 2024 - Figure 1
Photo Irish Examiner

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.

Government sources told the Irish Examiner that landlords will get relief in the form of a tax credit. “It will be no more than what renters get in their tax credit which will also be increased,” the source said.

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.

A targeted mortgage interest relief scheme will also be announced, however, senior government sources were last night playing down the scale and level of payment this will involve.

Social welfare

Social Protection Minister Heather Humphreys has confirmed there will be across-the-board increases to social welfare. 

It is now expected that pensioners, as well as those in receipt of job seeker supports, disability allowance, and carers allowance will see their weekly payments rise by around €12. 

However, it has been suggested in Government sources that Minister Paschal Donohoe could find the wriggle room to push it slightly higher than this amount.

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.

Families

After securing a 25% reduction in childcare fees last year, Children's Minister Roderic O'Gorman has been pushing for a similar cut this year.

However, he will have to weigh this up against investment in core allocations for childcare providers to ensure staff retention.

After securing a 25% reduction in childcare fees last year, Children's Minister Roderic O'Gorman has been pushing for a similar cut this 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 Irish Examiner 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.

Gardaí

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.

Transport

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.

Cigarettes and alcohol 

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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