Budget details on tax, health and social welfare to be finalised

Coalition leaders are expected to finalise the details of Budget 2024 on Sunday, with issues related to tax, health and social welfare decided.

The cost-of-living measures will not be as large as last year’s €4.1 billion package, the Government indicated.

Taoiseach Leo Varadkar said the tax package and measures for small businesses were among the outstanding issues, as were two of the big-budget departments, health and social welfare.

Mr Varadkar said government ministers would be “burning the midnight oil” on Sunday to finalise details.

Food delivery drivers were seen arriving on Sunday to drop orders at Government Buildings as ministers arrived for the last of the talks.

The three coalition leaders met Finance Minister Michael McGrath and Public Expenditure Minister Paschal Donohoe on Sunday to confirm the measures ahead of Tuesday.

Mr McGrath indicated on Saturday that people’s standard of living would improve on the back of the budget, and said he hoped the measures would have their desired effect.

The total cost of Budget 2024 is about €6.4 billion, with taxation measures worth €1.1 billion of the total.

Among the measures being floated are one-off electricity credits worth less than last year’s, a cut in the USC and measures to help both landlords and renters.

“As you know, pretty much half of all the Government spends is healthcare, social welfare, pensions, so they pretty much go down to the wire,” Mr Varadkar said ahead of the meeting.

“What I can say on the tax side is that there will be a good income tax and USC package, all income earners – workers, pensioners – will see a reduction in income tax and USC, and also there will be a package to help small businesses because we’re very aware of the increased costs that are coming at businesses at the moment.

Irish Budget — Taoiseach Leo Varadkar (right) and Public Expenditure Minister Paschal Donohoe arrive for a meeting at Government Buildings (Brian Lawless/PA)

“We want to make sure that they can absorb those costs and not have to pass on everything as price increases to the consumer.”

Asked whether this year’s cost-of-living package would be larger or smaller than last year’s, worth €4.1 billion, Mr Varadkar said that it would be “smaller than it was, but it will still be substantial”.

“It will contain a number of measures that are universal that benefit every household, particularly in relation to energy costs and electricity bills in particular, and then a number of elements of that are targeted towards families who are particularly absorbing the burden of the increased cost of living.

“Pensioners, for example, and carers, people with disabilities and so on. So not quite as large as last year, but still very meaningful.”

Tánaiste Micheál Martin said Budget 2024 aims to protect people from the rising cost of living, but said the package of one-off measures “probably won’t be at the same level as last year”.

“But we’ve to try and finalise that now,” he said on his way into Government Buildings.

“That’s part of the reason for today’s meeting. I mean, there are still a number of issues from public expenditure to be resolved, so there are challenging issues yet to be resolved before the budget.”

One of the largest looming issues to be resolved is the overrun in the Department of Health, with Mr Martin saying on Saturday that population growth in Ireland over a short space of time had led to an increased demand for health, education and childcare services.

Earlier on Saturday, Social Protection Minister Heather Humphreys confirmed that pensioners, carers, people with disabilities and working families “will receive an increase in their core weekly rate”.

Asked how much rates would rise by, Ms Humphreys said the finer details were yet to be decided.

But she also said she would push for “lump sum” welfare payments, and that she was supportive of the “very popular” double child benefit as part of the cost-of-living package accompanying the budget.

“I’ll be pushing hard to deliver a strong package that supports households with the cost of living and puts money back in people’s pockets, and there’s no secret that the groups I’m advocating strongly for are older people, are carers, people with disabilities and working families,” she told RTÉ’s This Week programme.

“I am proposing that we have an across-the-board increase in welfare payments and we’ll also have a package of lump sum payments that are targeted at specific areas but, again, it’s subject to negotiation and I don’t have the finer details yet.”

Asked about reports of a €12-a-week welfare payment increase, she said any rise in the rates was still subject to negotiations.

“Nothing is agreed until everything is agreed, but I do want to assure our pensioners, our carers, our people with disabilities and our working families that they will receive an increase in their core weekly rate.”

Asked whether there will be a double child benefit payment in Budget 2024, she said: “There’s nothing nailed down yet, but we did do a double child benefit payment last year, and I have to say, it’s got a very positive feedback.”

Asked whether the core child benefit payment should be increased, Ms Humphreys said: “Even though the economy has been doing extremely well, there’s still a limited pot available and I have to make choices.”