A cost-of-living package worth about €1.5 billion is under consideration as part of Budget 2025 negotiations, as bilateral meetings between Ministers continue ahead of budget day on October 1st.
Two Government sources said the standalone cost-of-living package would be less than last year’s €2.3 billion, with suggestions that it would land somewhere in the region of €1.5 billion.
This would allow another mix of lump-sum payments to welfare recipients and the further rollout of new energy credits. The final figure for the cost-of-living package would be agreed next week, a third source said. While householders can expect another round of energy credits, they will be worth less than the three payments of €150 rolled out in last year’s budget.
It comes as Fianna Fáil is demanding tens of millions more be allocated amid a brewing row over a funding shortfall for road improvements in advance of the budget.
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A funding shortfall of up to €40 million has emerged in recent weeks for a range of smaller road projects, with backbenchers publicly blaming Minister for Transport Eamon Ryan for the situation.
Fianna Fáil TD James Lawless, who is a junior minister in the Department of Transport, is pushing for the shortfall to be addressed as part of negotiations for Budget 2025.
It is understood that up to €7 million has been identified for an immediate provision to allow some works to proceed, but the balance of funding has already been spent despite being allocated for spending in 2024.
A spokeswoman for Mr Ryan said there had been funding pressures on a number of new road projects, meaning some works had to be paused. She said there has been no reduction to the overall capital funding available for national roads and that no safety improvement schemes would be impacted.
[ Average worker to gain by at least €1,000 in Budget 2025, says MinisterOpens in new window ]
Meanwhile, Government sources believe a row will be defused between the Green Party and Fianna Fáil over suggestions that the residential zoned land tax would be deferred.
A political row erupted when it was suggested the tax would be deferred from its planned start next year. Sources in both Fianna Fáil and the Green Party expressed optimism on Tuesday that a new proposal would be put forward that would exclude farmers who have genuine plans to use their land for farming.
Meanwhile, Minister for Health Stephen Donnelly is understood to be seeking funding for more hospital bed capacity. He is also looking at a possible expansion of free contraception to more women while potential changes have been mooted to the publicly funded assisted human reproduction treatment scheme.
[ Most people want budget to prioritise low-income families, poll findsOpens in new window ]
Funding is also being sought to staff more beds in hospitals and nursing homes as well as for services related to new surgical hubs. Another measure under consideration is expanding free contraception to 16 year olds as well as women over the age of 35.
The possibility of including 16 year olds in the scheme is being looked at, though it is said to be “legally complex” and raises ethical questions as the age of consent for sexual activity in Ireland is 17.
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