Free schoolbooks for students in the first three years of secondary school is set to be announced in tomorrow’s Budget, at a cost of €55 million. The measure, which will will be introduced next September, will mean that 770,000 students across primary and secondary schools will get free text books and work books.
As the last meetings ahead of Budget 2024 continue, there are indications too that the energy credit for households will be worth upwards of €400. As the overall Budget package takes shape, the final energy credit could be in the order of €450. Minister for Finance Michael McGrath said that a large number of Budget items have now been agreed.
Around 160,000 homeowners will benefit from a temporary mortgage interest tax relief worth up to €1,250. Finance Minister Michael McGrath will announce the cost-of-living measure in tomorrow’s Budget as the Government sets out a range of economic policies aimed at tackling the record levels of inflation over the last year.
The relief will be available to homeowners whose principle private residence has an outstanding mortgage of between €80,000 and €500,000 as of December 31, 2022. Those eligible for the tax break will be able to avail of 20pc relief on the increased amount of interest paid on their mortgage between 2022 and 2023.
The scheme will be capped at €1,250 per home and the Department of Finance estimates the average payment will be around €700. Homeowners will be able to apply for the tax relief through the Revenue Online System and will be required to upload mortgage statements for the last two years. The relief is not available to commercial properties and mortgage holders who took out further debt over the last two years will not be eligible for the scheme.
Meanwhile, around 770,000 children will benefit from the free school book scheme and free calculators and copybooks as part of a €55m package announced by Education Minister Norma Foley. Schoolbooks are already free for primary schools and this will now be extended to the first three years of secondary school. First, second and third year students in secondary school will receive free schoolbooks from next September. Free copybooks, calculators, dictionaries and other classroom resources will be included as part of the package.
Schools will receive funding to go out and purchase resources and provide them to pupils. School books will be owned by schools and will have to be returned at the end of the school year. It comes as the Government is set to unveil a cost-of-living package of one-off measures costing more than €2.3bn alongside tomorrow’s Budget. The package will include electricity credits worth at least €400 and a double welfare payment in January. There will also be a series of one-off payments for carers, people with disabilities and fuel allowance benefits for older people and those on lower incomes. Meanwhile, the Government has settled on increasing all weekly welfare rate payments by €12 from January rather than a bigger hike later in the year.
Public transport cuts of 20pc are expected, as well as the young adult Leap card, which gives 18- 24 year olds half price public transport, are both set to be extended. Further public transport reductions are not expected. Homeowners will also be able to claim 20pc tax relief on mortgage increases between this year and last year, capped at around €1,250 under a new scheme to be announced by Finance Minister Michael McGrath. In good news for taxpayers, the entry point for the top rate of 40pc tax is to increase by €2,000 to €42,000 in the Budget. A cut to the USC is also on the table as part of an income tax package expected to be worth €550m.
Smokers are set to be hit with at least a 50c increase in the price of cigarettes. The Government is also expected to announce its commitment to taxing e-cigarettes and vapes but this will need legislation which will be enacted at a later date. A free schoolbook scheme for students up to the junior cycle classes in secondary schools is also expected, along with the expansion of the free school meal scheme to all primary schools.
Meanwhile, a large package of tax cuts and once off measures for businesses hit by hikes in energy costs, the minimum wage and improved working conditions will be a part of tomorrow’s Budget announcement. The package from Enterprise Minister Simon Coveney will seek to relieve businesses put under pressure as a result of Government imposed costs in recent months.
Minister Coveney as well as Taoiseach Leo Varadkar were seeking to provide relief to businesses from these costs in Budgetary negotiations.Most of the final decisions are to be signed off on this afternoon by the three Government leaders and money ministers Paschal Donohoe and Michael McGrath.
For renters, the rental tax credit will be increased to at least €750 and perhaps higher. Small landlords will be also in line for reliefs but a senior Government source said these are likely to be lower than the supports for renters. A double payment of all welfare rates will be paid to those in receipt of the benefit in January as part of the Government’s cost-of-living Budget package. The payment will be in addition to the Christmas bonus, which is expected to be paid in December.