Pension and welfare payments are set to increase by €12, along with various one-off bonus payments scheduled in the coming months as part of the coalition government’s final budget package.
In preparation for tomorrow’s budget announcement, government leaders held last-minute talks with Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe. These negotiations aim to finalize key financial measures.
Contents
- €624 Social Welfare Boost €125 Energy Credits & Double Child Benefit
- Cost of Living Support Package
- Payment Timeline
- Social Protection Initiatives
- Green Party Contributions
- Arts and Education Investments
- Tax Reliefs and Adjustments
- Inheritance and Housing Reforms
- Health Sector Funding
- Justice and Defence Investments
€624 Social Welfare Boost €125 Energy Credits & Double Child Benefit
During the meeting, several important proposals were discussed, including:
- The amount for one-off welfare payments
- The Green Party’s proposed €560 “baby boost” payment
- The pension increase
- A comprehensive Cost of Living Support Package
Cost of Living Support Package
As negotiations wrapped up, coalition leaders agreed to expand the cost of living support package with a broad array of financial reliefs:
- Two €125 energy credits for households
- Two double child benefit payments
- One-off bonus payments for those receiving:
- Fuel allowance
- Living alone allowance
- Carer’s payment
- Disability allowance
- Working family payment
Payment Timeline
Energy credits are set to be issued in November and December to alleviate rising energy costs. In these months, double child benefit payments, totaling €560, will also be distributed, along with various cost-of-living bonuses, providing support ahead of the Christmas season.
Social Protection Initiatives
Social Protection Minister Heather Humphreys was pivotal in securing a €12 increase in pensions and welfare payments. She also fought for one-off cost-of-living bonuses to be distributed before the holidays.
Green Party Contributions
Green Party leader Roderic O’Gorman advocated for a substantial one-off quadruple child benefit payment of €560 for every newborn to support young families. The Green Party also secured funding to extend free public transport to all children under nine.
Arts and Education Investments
- Arts: Arts Minister Catherine Martin extended the Basic Income for Artists scheme for another year, ensuring 2,000 artists receive €325 weekly.
- Education: Education Minister Norma Foley expanded the free school books program to include 5th and 6th-year students, providing greater financial relief for families with older students.
Tax Reliefs and Adjustments
Finance Minister Jack Chambers will introduce several tax reductions:
- USC Tax: The rate will drop from 4% to 3% for individuals earning less than €50,000.
- Higher Rate Tax Threshold: This will increase from €42,000 to €44,000.
- New Tax Credits: Targeted at lower-income workers.
For a worker earning €50,000, these tax cuts translate to an extra €800 in annual take-home pay. The renters’ tax credit will also rise from €750 to €1,000, providing additional support for tenants.
Inheritance and Housing Reforms
- Inheritance Tax: The threshold will increase from €335,000 to €400,000.
- Help to Buy Scheme: Extended until 2029, aiding first-time homebuyers.
Health Sector Funding
Health Minister Stephen Donnelly secured an additional €30 million for new medicines, allowing the introduction of advanced treatments next year.
Justice and Defence Investments
- Justice: Justice Minister Helen McEntee obtained funding to hire 1,000 new gardaí, expand prison capacity by 1,100 spaces, and recruit 350 additional prison officers.
- Defence: The Defence Forces will receive unprecedented funding to recruit 400 new soldiers and acquire advanced radar systems for enhanced national security.
This comprehensive budget reflects the coalition’s aim to address immediate cost-of-living pressures while investing in long-term social and economic infrastructure.
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