By Caoimhe Looney
The Government have announced the Budget 2024, which includes a cost-of-living package.
Here’s a breakdown of the main measures included in the budget, and how they may affect you:
Cost of Living
- Energy credits totalling €450 across three instalments of €150 between the end of this year and the start of next year.
- Double child benefit payment totalling €280.
- €400 lump sum to recipients of the working family payment.
- Those on the Living Alone Allowance will receive an extra €200 payment.
- Once-off payment of €400 to be made before Christmas to recipients of Carer’s Support Grant, Disability Allowance, Blind Pension, Invalidity Pension and Domiciliary Care Allowance.
- Fuel allowance recipients will receive a once off payment of €300.
Tax and Wages
- Increase in hourly minimum wage by €1.40 to €12.70 per hour.
- Reduction in USC by 0.5%, from 4.5% to 4%.
- A €2,000 increase in the top rate of income tax to €42,000.
- PAYE tax credits to increase by €100.
- PRSI rates to increase by 0.1%.
Students
- Once off €1,000 reduction in university fees.
- Families with an income of less than €100,000 will have college fees for undergraduate students halved to €1,500.
- Increases to existing grant schemes, with maintenance grant rates set to be hiked by €615 with pro rate increases for students in current academic year.
- Maintenance grants for postgraduate students will be restored to be in line with undergraduate levels.
- There will be an increase in the Post Graduate Tuition fee contribution by €1,000 for any grant recipients.
Housing and Renters
- The Help-to-Buy scheme is being extended to the end of 2025.
- Rent Tax Credit will be increased by €250 from €500 a year to €750 a year.
- Parents who pay for student children in ‘Rent a Room’ or ‘digs’ will now be able to claim the Rent Tax Credit. This is backdated to allow for claims to be made for the 2022 and 2023 tax years.
- Introduction of a one-year mortgage relief scheme for homeowners with repayments outstanding between €80,000 and €500,000.
- Landlords will received tax relief at the 20pc standard rate on a proportion of their rental income.
Social Welfare
- Weekly social protection payments will increase by €12.
- An extra €200 will be paid to those receiving the Living Alone Allowance.
- A Christmas Bonus to those in receipt of regular Social Protection payments.
- A once-off double week “Cost of Living Support” payment to all qualifying Social Protection recipients.
- A double payment of the Foster Care allowance will also be made this year.
- The extension of child benefit in respect of children aged 18 in full-time education.
Childcare
- A 25% cut in childcare fees was announced but is not due to come into effect until the end of next year.
- The Qualified Child Increase will increase by €4 to €46 per week for under 12s and to €54 per week for over 12s.
- Parents benefit will be extended to nine weeks.
Cigarettes and Vaping
- The excise duty on a packet of 20 cigarettes will be increased by 75 cents.
- A domestic tax on e-cigarettes and vaping products has been proposed by Minister McGrath.