Budget 2024: Here’s the key points…

A €14 billion Budget spend was announced at lunch time, with three €150 energy credits, increases in social welfare and further reductions in childcare costs among the measures. 

There is also targeted relief for mortgage holders and an increase in the national minimum wage to €12.70 per hour, an increase of €1.40.

Speaking in the Dáil this afternoon, Minister for Public Expenditure and Reform, Paschal Donohoe TD said that recent Budgets responded to Brexit, a pandemic, the war in Ukraine and now, to the rising cost of living.

He said he is “conscious” that many people are concerned about rising costs and particularly the challenges of heating and lighting their homes this winter.

Minister Donohoe said that all households will receive a further set of credits to assist with energy bills – alongside a number of once-off payments to help with rising living costs. 

Winter / once-off cost of living supports

Three credits of €150 will be provided between the end of 2023 and April of next year.

€300 Fuel Allowance lump sum 

€200 Living Alone Allowance lump sum 

A double payment of Child Payment, worth an additional €140 for each child, will be made to all qualifying households before Christmas.

A once-off €400 payment for people on the Working Family Payment this year.

€100 Working Family lump sum this year.

Double week for all weekly welfare schemes (January 2024)

€400 lump sum to selected welfare categories: Carer’s Allowance, Disability Allowance etc. 

A double payment of the Foster Care allowance

TAX

Increase of €1,500 in the income tax standard rate cut-off point for all earners

€200 increase in the Incapacitated Child Tax Credit  

€100 increase in the personal tax credit

€100 increase in the PAYE tax credit

€100 increase in the Earned Income Credit

€100 increase the Home Carer Tax Credit

€100 increase in the Single Person Child Carer Credit

A reduction in the middle rate of Universal Social Charge (USC) from 4.5% to 4%

Increase in the Rent Tax Credit from €500 to €750

75c Increase in Excise Duty and VAT on a pack of 20 cigarettes

Extension of VRT relief for Battery Electric Vehicles to the end of December 2025

HEALTH

A total of €22.5bn allocated to public health system, including an €800m increase in core current funding to tackle demographic and service pressures. 

EDUCATION

Free School Book Scheme for Junior Cycle at post-primary level

Hot School Meals extended to all DEIS primary schools 

Extension of Child Benefit to pupils over 18 years in full time education

Restoration of maintenance grants to postgraduate students on a similar basis to undergraduates

CHILDCARE

A further 25 per cent reduction in the cost of childcare from September 2024.

HOUSING

Help-To-Buy scheme extended to end of 2025. Scheme is being ammended so that applicants of the local authority affordable purchase scheme can avail of Help-To-Buy. Changes will take effect from tomorrow. 

Tax relief for mortgage holders will be available on the increased mortgage interest paid in 2023 compared to 2022

Rent Tax Credit is being increased from €500 to €750 per year.

An amendment is being made to allow parents who pay for their student children who have tenancies to claim the Rent Tax Credit. This will be back dated to 2022 and 2023 tax years.

6,400 affordable homes for sale and rent 

BUSINESS

Range of new measures in Budget to help businesses, including a €250m fund to assist small and medium sized firms with the rising cost of doing business.

CLIMATE

There will be a €7.50 increase in the current rate of Carbon Tax applied per tonne of carbon dioxide emissions.

Carbon tax will increase by the same amount in every budget until 2029.

The increase will be applied to petrol and auto diesel from midnight on Budget night (October 11) and all other fuels on May 1, 2024.

Other expenditure measures

1,000 new Garda and 250 Garda Staff

20% fare reduction on public transport continued to end of 2024

€12 increase in the Weekly Social Welfare Rate for working age recipients

€12 increase in weekly payments for pensioners

€54 per week increase in the Working Family Payment threshold

€4 increase in weekly rate for a Qualified Child

Up to 2,000 additional staff to enhance capacity across acute and social care services

€67m to provide 16,000 craft apprenticeship programmes

Additional €50m for school transport scheme

€207m to bring back vacant and derelict units

For full details and a breakdown of new measures and how it will work for you, visit Government.ie HERE.