A bumper package nearing €2 billion aimed at helping households with the increased cost of living is being finalised by the Government as it prepares a giveaway budget in advance of a general election.
Taoiseach Simon Harris on Sunday signalled that the package of once-off measures, to be announced on Tuesday, would likely be hundreds of millions higher than the previously expected €1.5 billion.
This will mean that the once-off payments in the budget to households, most of which will be paid before the end of the year, will be greater than expected, with two double child benefit payments potentially being distributed before Christmas.
The Government is also close to agreeing an extension of the Help-to-Buy scheme until 2029, meaning it would run for three years longer than expected, after a proposal was tabled by Minister of Finance Jack Chambers.
An extra 5 per cent would be charged in stamp duty on the purchase of 10 or more houses by so-called “vulture funds” under a separate proposal from Mr Chambers.
A senior source said the overall cost-of-living package in Budget 2025 would be “a lot closer” to €2 billion than €1.5 billion.
Minister for Social Protection Heather Humphreys is seeking to provide two double child benefit payments before Christmas alongside universal electricity credits to the value of €250. This could potentially be given in two €125 payments.
Extra payments under the living alone allowance and lump sums to those with long-term disabilities are also expected, while a Green Party proposal for free public transport for children under nine has been agreed and will kick in next summer.
The core rate of child benefit looks likely to stay at €140, despite suggestions it could increase by €10. A lower rate of welfare increase for jobseekers is now seen as unlikely.
A cut to VAT for the hospitality sector remains a remote possibility and a support package for businesses worth up to €120 million is being considered. This would be accessible to firms this year and is likely to be administered as a flat energy support payment.
There will be a 24 per cent increase in funding for childcare, although fees will not come down for parents, with extra allocations from the €1.34 billion agreed given to account for the growing number of children in the system and to provide more income for creches that have been subject to a fee freeze. The Department of Children received a total of €120 million in funding for new measures, twice what was originally offered.
Free schoolbooks will be extended to the Leaving Cert cycle and there will be money for special pouches for phones to help post-primary schools enforce a ban on the devices.
Funding has been agreed for more than 1,500 additional special needs assistants and 350 more special classes. Fees for the Junior Cert and Leaving Cert will again be waived and reduced charges for school transport are to be maintained for another year. A so-called “baby boost” sought by the Green Party, a quadruple child benefit payment after an infant is born, is still under consideration.
The minimum wage is expected to increase by 80 cent, while agreement was reached to increase criminal legal aid fees by 8 per cent from January. There will be €70 million in funding for domestic, sexual and gender-based violence initiatives.
The Coalition intends to add 1,100 additional prison spaces over the next five years, with plans being developed for new jails at the Curragh and Thornton Hall.
Allocations will be signalled for the combined €17 billion in Apple tax windfall and AIB share proceeds, with the Land Development Agency, Irish Water and EirGrid in line to benefit, while the Greens were seeking €5 billion for investment in public transport alongside a similar sum for housing.
The universal social charge is to be cut and the entry point for the higher rate of income tax will go up by €2,000, which should give households back several hundred euro a year. Inheritance tax thresholds will go up across the board and there will be extra tax credits for renters.
Mortgage interest relief is to be extended and the reduced VAT rate on electricity and gas bills will be extended until April. Student fees will again be reduced by at least €1,000, potentially up to €1,500, and income bands for student grants will widen, making more households eligible.
