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 payment of welfare rates in January. There will also a series of one-off payments for carers, people with disabilities and fuel allowance benefits for older people and those on lower incomes.
Meanwhile, it has also emerged all welfare rates could increase by €15 a week but the new rate would be paid later in the year. The alternative is to increase the rates by €12 a week from January. A decision on the new rates is currently being debated by Government ministers.
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 their 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.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. Those set to benefit from the double payment are pensioners, carers, people who receive disability payments and those in receipt of the jobseeker allowance.