The State’s basic income scheme for artists will be opened up to 2,000 new entrants next year and put on a permanent footing in the budget.
Under the scheme – which has so far operated on a pilot basis – those participating are paid €325 per week.
Minister for Culture Patrick O’Donovan has agreed with Government spending ministers that the scheme will now operate on a permanent footing, with a new round open for applicants from September next year.
The size of the scheme will mirror that in the pilot, although it may expand next year to 2,200 if additional funding can be found. The intention is to incrementally open it up to more people in the years ahead.
RM Block
The application criteria will also be expanded to include more artistic disciplines.
It comes as budget negotiations go down to the wire, with five big-spending departments yet to agree their budget allocations for next year.
The Departments of Health, of Housing, of Social Protection, of Children and of Education are still locked in negotiations as the hours tick down to budget day.
It is understood that negotiations for increases to core welfare rates are focusing on a riseof €8 to weekly payments. Increases are expected to the fuel allowance and also to the level of income disregard for carer’s benefit.
In the Department of Housing, the renter’s tax credit is expected to be extended – potentially for several years – but not increased from its current level. VAT on new apartment sales is to be cut to 9 per cent from 13.5 per cent at a cost of €250 million. The cost of extending the renter’s tax credit is said to be in the region of €350 million.
Health is expected to be allocated in the region of €27 billion next year, an increase of €1.2 billion on 2025. Meanwhile, there is an expectation that reforms in the childcare sector will focus on increasing places for children rather than reducing costs. However, that department has not yet agreed its allocation.
Negotiations between Minister for Education Helen McEntee and the Department of Public Expenditure have been problematic. A division has remained over what level of spending will be counted towards maintaining services at their current level and how this will impact “new” money for additional interventions in 2026.
Minister for Justice Jim O’Callaghan will receive funding for up to 1,000 new gardaí in 2026, as well as money for body cameras, victim support, youth diversion and domestic violence programmes. Extra money will also be allocated towards speeding up immigration processing.
Student contribution fees are expected to fall by €500 on a permanent basis. In real terms, however, the cost for households will increase due to a €1,000 temporary measure that was agreed last year.
Public transport fees are expected to remain lower, while VAT on household utility bills will remain at 9 per cent - costing around €254 million.
There will be €558 million for SEAI residential and community energy upgrade schemes, including the solar PV scheme, to support retrofits. This is an €89 million increase on last year.
Research and development tax credits are expected to increase, although the level is not yet clear. As expected, the VAT rate for food businesses will fall to 9 per cent from July next year, costing around €240 million in 2026. The full year cost will be significantly higher from 2027 onwards.
There will be no income tax cuts, with Government sources pointing to plans outlined by the Coalition that they would be avoided in the event of economic headwinds.
