LAST UPDATE | 16 mins ago
THE BUDGET IS set to include a €2 billion cost of living package and number of once-off payments, The Journal understands.
Coalition leaders and senior ministers last night engaged in high-level negotiations, ahead of Tuesday’s Budget announcement at 1pm.
All must be signed-off on tonight when leaders will meet again.
Once-off social welfare payments will likely be issued before and after Christmas, which will include two double child benefit payments before Christmas along with extra payments on fuel and living alone allowances.
Here’s what we know so far:Cost-of-living measures
A €250 energy credit will also form part of the package. Double child benefit payment Double fuel allowance paymentTax measures
A reduction in the 4% rate of USC to 3% €2,000 increase in the threshold for the higher rate of income tax, bringing it to €44,000 Rent tax credit to increase to €1,000 Inheritance tax threshold to increase from €335,000 to €400,000 for children, with further changes for other siblings and relatives. Stamp duty on bulk buying of homes is to increase from 10% to 15%Social welfare
€12 social welfare payment increases, such as the pension and jobseekersOther measures
Free public transport to be extended to all children under the age of nine Free school books to be extended to Leaving Cert Expansion of the eligibility criteria for the free IVF scheme and free HRT for women Help-to-Buy scheme to be extended to 2029 Funding for schools to buy digital pouches to lock away mobile phones of students during class time ‘Spinning’ taking place says TánaisteThere has been much talk at the weekend about a sticking point over the level of social welfare increases.
The Taoiseach agreed with Social Protection Minister Heather Humphreys yesterday that the jobseekers’ allowance should not increase at the same rate as other social welfare payments, saying it is a “practical” matter rather than an “ideological debate”.
“These are many good ideas, how do we best make the carpet fit the room,” Harris tod reporters yesterday.
He agreed with his Fine Gael colleague that the allowance should not be prioritised over payments to carers, pensioners and people with disabilities given that the economy is operating at near full employment.
However it is understood that a €12 increase will now be rolled out to all social welfare payments, including jobseekers after the Greens and Fianna Fáil said leaving out one cohort of people would not be acceptable to them.
Tánaiste Micheál Martin said today that the budget is now “largely complete” but added there will be a meeting this evening to finalise it.
Martin said he is “bemused” by the reports of back and forths between coalition parties, stating that there was never a €15 increase put on the table for discussion at any meeting he has attended.
He said there was “spinning”, “mischief” and a “phoney war” going on, stating that it has been “overplayed” and is “much to do about nothing”.
“There’s a bit of spinning going on here that has no substance, really. Because for the last four years in government, this never arose. There was never an issue made about this by any party government. It was always agreed that the same level would apply… maybe it’s the cycle we’re in,” he added.
Martin said inflation has come down but prices have remained at an elevated level, he said.
There continue to be sticking points, with ongoing discussions on the VAT rate for the hospitality sector.
Government sources state that this spend was not accounted for in the Summer Economic Statement, however with bumper surpluses, the money might be found.
