The coalition party leaders and Minister’s Michael McGrath and Paschal Donohoe met late into the night working out the details of Budget 2024. However, it is understood some key issues are still outstanding and more talks are likely to continue on Monday.
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. Agreement was reached between the Government leaders and Finance Minister Michael McGrath and Public Expenditure Minister Paschal Donohoe on a budget welfare package late last night. Meanwhile, mortgage interest relief worth more than €1,000 to homeowners and the introduction of pay-related unemployment payments were at the centre of Coalition Budget talks last night.
Tuesday’s budget marks the first for Fianna Fáil’s Michael McGrath as Minister for Finance. His predecessor, Paschal Donohoe, will be close at hand though, announcing the measures alongside Mr McGrath as Minister for Public Expenditure and Reform.
€15 weekly increases to social welfare payments and the pension are among the latest measures expected to be included in Tuesday’s budget. It is also expected there will be an increase of students grants announced in the budget.
From January, over 50,000 students may see a rise of over 300 euro for the academic year. Postgraduate students may also see significant increases in their grants.The rent tax credit is set to increase from €500 to between €750 and €800 which will be a boost for renters.
The minimum wage is set to increase by €1.40 to €12.70 but financial measures to soften the blow for employers will also be introduced. An increase of at least €12 in the core welfare rates such as pensions, carers allowances, disability payments and jobseekers allowances are also expected, but Taoiseach Leo Varadkar wants the rates hikes to be higher.
There will also be a €1.1bn tax package which will focus on increasing the entry point to the 40pc top rate of income tax along with reductions in the Universal Social Charge (USC). Ms Humphreys said the finer details were yet to be decided ahead of a meeting with Public Expenditure Minister Paschal Donohoe yesterday afternoon.