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A series of giveaways will see many families gain by thousands of euros over the next 12 months, as te Coalition seeks an electoral launch pad from today’s budget.
Tax changes expected to make workers on average wages about €1,000 better off and a series of one-off payments in the coming months, including €250 in energy credits and two double payments of child benefit worth an extra €840 for families with three children, will be among the measures announced later today.
A range of other spending commitments will amount to the biggest budget giveaway to households ever, with an election due by March of next year and expected by many to take place in November.
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The Government will project a large surplus, again driven by bumper corporation tax receipts, while also setting money aside into its savings funds.
There will also be extra billions provided for investment in water, housing and energy from the proceeds of bank shares, while the surplus in the National Training Fund will be tapped for investment in third-level education.
The Government is also expected to announce that some of the proceeds of the Apple tax case will be committed to investment in four areas – water, electricity, transport and housing.
The Green Party was happy last night to secure a triple payment of child benefit as a “baby boost”.
There is expected to be 10 different one-off payments in the coming months: two double welfare payments in October and at Christmas; two double payments of child benefit; a €400 disability support grant; a €400 carer’s support grant; a €300 fuel allowance payment; a €200 living alone allowance; a €400 working family payment; and a €100 child support grant (formerly qualified child payment).
But not everyone will be happy: intense lobbying to secure a VAT reduction for hospitality failed, although the Increased Cost of Business payment is likely to be extended.
The Coalition party leaders and the two budget Ministers were still finalising details of the package on Monday night in advance of its presentation to the Dáil on Tuesday afternoon.
However, The Irish Times understands that welfare increases will include a €15 increase for maternity and paternity payments; a package for carers will include an increase in the Carer’s Allowance means test limits to €625 per week for a single person and €1,250 per week for a couple; an increase in the Carer’s Support Grant to €2,000 from €1,850; and the Carer’s Benefit will be extended to self-employed workers.
Overall there will be a €12 increase to weekly welfare payments, and a €20 increase in the Domiciliary Care Allowance. Student grants will also increase by 15 per cent.
The Qualified Child Payment will be renamed as the Child Support Payment – and weekly payments for under 12s will be increased by €4 to €50 and for over 12s increased by €8 to €62.
The health budget will also include free hormone replace therapy (HRT) for women going through menopause, saving them €360-€840 a year. The largest ever health budget will also include an additional €30 million funding for new medicines next year.
A new universal companion pass for people aged over 70 will also be introduced in today’s budget. Under the new plans, all OAPs over the age of 70 will now be able to bring a loved one or friend on public transport free of charge. At present, people over 70 can apply for a companion pass provided they satisfy a medical assessment. However, as part of Budget 2025, Minister for Social Protection Heather Humphreys has secured agreement to make the pass universal for all over 70s. The move is designed to tackle issues such as isolation and loneliness.
The start dates for two significant social welfare reforms will also be announced as part of Budget 2025. Pay Related Benefit, which ensures those with stronger working histories receive higher welfare payments if they lose their jobs, will start on March 31st, 2025. The long-promised pension enrolment scheme will start on September 30th, 2025.
Despite the huge resources at the Government’s disposal, there has been intense squabbling and jockeying in recent weeks for political advantage between the three Coalition parties as each sought to get credit for the various budget giveaways.
Yesterday Fianna Fáil leader Micheál Martin hit out at reports that claimed Fine Gael would seek to have pension payments increased by €15 a week, while introducing a lower increase for unemployment benefit.
Mr Martin indicated that Fine Gael had made no such request officially, dismissing suggestions to the contrary as “spinning” and “completely overplayed”.
