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Budget 2024: What exactly can we expect in next week's package?

All will be revealed this day next week.

LAST UPDATE | 3 Oct 2023

WE’RE JUST ONE week out from Budget 2024, with €6.5bn worth of new measures set to be announced next Tuesday. 

Fianna Fáil is trying to put its stamp on things this year, given that it’s Michael McGrath’s first time in the driving seat as Finance Minister. 

While then-Minister for Finance Paschal Donohoe made it clear last year that billions would be spent on addressing the cost-of-living crisis being felt by people across the country, there is some pressure on McGrath to dampen expectations. 

However, Taoiseach Leo Varadkar and Government ministers have already confirmed that this year’s package is set to be supplemented by a number of one-off measures, some of which will kick in before Christmas. 

With a series of ministers due to meet the Finance Minister this week with their final wish list for their departments, senior sources have said “this week will be tough”, with not everyone getting what they have asked for. 

Coalition leaders will meet with McGrath and Donohoe on Wednesday to come up with the final draft for the Budget by next week.

However, like many other years, the big Budget Day reveal of years gone by has ended, with much of the measures already leaked to the media. “There will be no surprises at this stage,” said one source. 

So what can we expect to hear next week?

Income Tax Package: The standard rate band – which currently stands at €40,000 – will continue to rise in this year’s budget, with some indicating it could increase by up to €1,500. However this is yet to be finalised.

Fine Gael want it to gradually reach €50,000 over the coming years, so people on higher incomes get to keep more of their earnings. 

All eyes will be on the controversial Universal Social Charge (USC) changes, which are being seen as a measure Fianna Fáil want to take credit for.

Last year the ceiling of the second USC rate band increased from €21,295 to €22,920 to “support those on minimum wage” but this year it could be the case of widening out the 2% band to move in line with an expected increase in the minimum wage next year. 

There will be no introduction of a third rate of tax, as was proposed by Varadkar last year, but the measure may not be off the table for next year. 

The Government’s plan to introduce pay-related benefit, which links a person’s previous PRSI contributions to their social welfare supports if they lose their job, is also at an “advanced stage”, with discussions ongoing this week about whether the new system could form part of the budget. 

Social welfare package: Social Protection Minister Heather Humphreys already confirmed this summer that she would be ambitious about the budget’s social welfare measures, indicating she would like to match the €12 pension increase from last year. 

How much the increase this year will amount to is still being decided upon, with government sources saying that the increases are likely to be closer to last year’s increase

The minister is also understood to be setting her sights on social welfare increases for people with disabilities and carers. There is likely to be a repeat of the top-up one-off payments, like a double welfare and child benefit payment before Christmas.

Humphreys is also pushing for the expansion of the hot school meals programme. 

A question mark hangs over the number of electricity credits the government will announce. The Taoiseach has said that households will need additional help to pay their bills this winter.

However, the government has been waiting to see where inflation stands and how far energy companies have reduced their prices before signing off on another three universal €200 electricity credits. 

It is understood there will be at least one this time around – but the debate is still ongoing as to whether it might be two €150 payments this year.

Government ministers have continually stated that supports should be targeted as much as possible to those that need them, making it likely that another lump sum payment for Fuel Allowance recipients will be paid before Christmas. 

The Taoiseach has already said that the one-off measures – many of which will be paid out before Christmas – will not be as big as last year, particularly due to the Department of Health’s budget overrun of €1 billion for this year, as was first reported in The Journal back in August. 

An extension of the Help-to-Buy scheme until 31 December 2025 is on the cards, but the question is whether it will be modified to include second hand homes or if the loan-to-value measure will be tinkered with. 

The renters’ tax credit of €500 for tenants who are paying rent in respect of their principal private residence is also set to increase, though perhaps not to the €1,000 which was first mooted. The credit is likely to increase to around €800.

As reported by The Journal over the summer, targeted mortgage interest relief for homeowners is being worked on between the finance minister and social protection minister. 

Varadkar has also indicated that this year’s budget will help small landlords and encourage more of them to enter and stay in the market.

The tax concession is likely to be linked to the rights and security of tenants, it is understood.

The final restoration of the excise duty on fuel is meant to kick in this month by 8c for petrol and 6c for diesel; however it has all been but confirmed by ministers that this will now be pushed out to a later date as prices at the pump are steadily getting close to the €2 per litre mark. 

One promise that is being rolled back on this year is the promised 25% reduction in weekly childcare fees.

Last year’s announcement was worth up to €175 per month or €2,106 per year for parents, but it’s understood it might not be worth as much this year. 

It has also been confirmed that State-funded parents’ leave will increase by another two weeks, meaning parents will be able to take up to nine weeks off after their children are born. This can be taken any time up to the child turning two, and is paid by the State. Employers do not have to top up the benefit. 

Extending the free school books scheme to secondary school students is under consideration in this year’s budget, Education Minister Norma Foley has said. The scheme was rolled out for primary school pupils in September. 

It’s understood the Higher Education Minister Simon Harris wants to make big strides in the reduction of student fees this year, which could see the €1,000 reduction introduced last year doubled. A 25% increase in student grants is also on the table for consideration.

In terms of public transport fares and whether there will be further price reduction, Transport Minister Eamon Ryan told The Journal last month that he would prefer to pause any further fare reductions, instead using the funds to invest in further expansion of public transport. 

Minister for Enterprise Simon Coveney said on RTÉ’s The Week in Politics over the weekend that there will be once-off supports before the end of the year for small and medium businesses

While workers saw a tax-free bonus amount an employer can give an employee  increase from €500 to €1,000 annually in last year’s budget, Varadkar has confirmed that there will be no increase this year.

Excise on a pack of 20 cigarettes is mooted to increase by 50 cent, but repeating last year’s move, an increase on alcohol is unlikely. 

As confirmed by Tánaiste Micheál Martin to The Journal, there could be a budget announcement regarding tax on vaping products, though the measure would not be rolled out immediately. 

As talks intensify over these final days and with the cost-of-living still a key concern for most, the pressure is on government to strike the balance right next Tuesday. 

Budget sign-off on Sunday

The Taoiseach wasn’t giving much away at a press conference today at Government Buildings, though he told reporters that the budget will contain a “significant” cost-of-living package as he summarised what people could expect in the Budget.

Varadkar said the Budget is not likely to be finalised before Sunday night and is then subject to Cabinet approval on Tuesday.

While warning against speculating on budgetary measures, the Taoiseach added: “What I can say is that it will contain an income tax and USC package which will reward work and put money back into people’s pockets.

“The amount you gain will depend on how much you earn and your circumstances, that’s always the case.

“There will be a significant cost-of-living package which people will feel the effect of before Christmas because petrol/diesel prices are high, energy prices are still high, gas prices are still high.

“There will be help for business and farms because of the high costs they’re facing.

“There will be a focus on children and you’ll see that in the social protection area, education and childcare.

“And of course, there’ll be additional resources for law and order.”

Varadkar has previously said one-off measures in the Budget will be smaller in scale than last year.

He said this was because inflation has moderated and wage increases across the economy have outpaced rising prices since last year.

With reporting by Press Association

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58 Comments
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    Oct 3rd 2023, 8:10 AM

    As a working class citizen of this country I fully expect to get FKD by the budget.

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    Mute Peter Barnwallace
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    Oct 3rd 2023, 8:58 AM

    Why? It’s clear those who get up early to work will benefit

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    Oct 3rd 2023, 9:11 AM

    @Peter Barnwallace: I must change my shift hours to benefit from this early morning increment you made up.

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    Oct 3rd 2023, 9:19 AM

    @Peter Barnwallace: since when? I’ve yet to benefit from any budget from this government yet. What they give you in one hand they take in another.

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    Oct 3rd 2023, 9:20 AM

    That clown is a troll. It constantly gaslights people.

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    Mute Ian Cryan
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    Oct 3rd 2023, 11:09 AM

    Working class person don’t get anything worth talking about as usual

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    Mute Donal Desmond
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    Oct 3rd 2023, 11:36 AM

    @Peter Barnwallace: Well said Leo….except it those who got up early were screwed by taxes and austerity..It was those who got up early and every citizen even those on social welfare and the most vulnerable who had medical cards removed to pay the price of the gangsterism of the banks facilated by the same political parties that are in government. It was FG that welcomed and gave tax brakes to Vulture companies ,long before they decided those who get up early should get something back.. WHAT ever brake they get is not an increase, just a bit that they lost out on through the years..Your buddies in FG also had no problem in giving the banks a tax brake for the next 20 years…The same banks who told your buddies Harris and McGrath to F..k off.

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    Mute Mr Inbetween
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    Oct 3rd 2023, 5:54 PM

    @Peter Barnwallace: FFG have infected you, you need to see a doc regarding your poverty porn comments.

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    Mute Tom Newell
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    Oct 3rd 2023, 6:11 PM

    @Peter Barnwallace: when did this happen?

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    Mute MTB Mayo
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    Oct 4th 2023, 9:39 AM

    Why do we expect the govt to do everything for us. It’s your life, your responsibility. Get up and do something about it. Don’t sit around waiting for handouts.

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    Oct 3rd 2023, 8:24 AM

    Have to say the various energy credits last year were generous and really helped to take the sting out of the bills.

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    Oct 3rd 2023, 8:26 AM

    Energy credits wouldn’t be needed of the government did their job and stopped the energy companies from unnecessarily fleecing its customers

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    Mute xmasbride
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    Oct 3rd 2023, 8:29 AM

    That’s true they were very helpful. But the government could have stopped it ever getting to that. While they helped us they still rode us afterwards with the other high bills.

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    Mute BL Music
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    Oct 3rd 2023, 10:55 AM

    @: these credits were our money and it was been give straight to the energy companies which have had astronomical profits . Our failed government would have been better regulating the price . The only winners in credits are the energy companies.
    Another moment where FFG failed to look after the people of Ireland but made sure the corp got theirs ..

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    Oct 3rd 2023, 8:50 AM

    What they give with one hand they take with the other. Landlords still being looked after I see. Especially the international ones. The housing crisis not even being given a sticking plaster. Keep the status quo at all costs. Throw us a few crumbs.

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    Mute P.J. Nolan
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    Oct 3rd 2023, 9:06 AM

    The housing crisis is caused by a lack of building which in turn is because we don’t have enough builders.
    They all left or re trained after the Celtic crash when they got screwed over, couldn’t even get the dole. Add in the fact that young guys were not taking it up since.
    No political party, FF, FG, SF, PBP or even the National party will solve that inside the next decade, probably a lot more.
    I’m voting for SF although they are not my natural home but we need change.
    Unfortunately, even with the best of intention they, or anyone else cannot magic up builders out of thin air.

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    Oct 3rd 2023, 9:19 AM

    @P.J. Nolan: Indeed we do need change. It will take a long time to resolve the current issues. Sooner we start though. Thankfully SF are motivated to build social and real affordable housing. Good well paid jobs can be created from large building projects. Unfortunately the current cohort in government and their voters are only interested in financial profiteering from home ownership. I’m a ‘homeowner’. Well the bank still owns it. But it’s wrong that so many are being fleeced by landlords and their crazy rents.

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    Mute another one? what's going on is the semi state sec
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    Oct 3rd 2023, 1:02 PM

    @P.J. Nolan: The need for housing was highlighted back in 2011 when it was reported that we needed 30k completions per year until 2026. FGs inaction on housing policy has a lot to answer for. They were just happy to bend over for the REITs. Now we’re 250,000 dwellings in the hole. A housing minister, with all his advisers, should have foreseen this and lured people back to construction, especially as it was highlighted back then. Now we’re all suffering again because of the failings of FF/FG.

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    Mute P.J. Nolan
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    Oct 3rd 2023, 6:03 PM

    @another one? what’s going on is the semi state sec:
    We didn’t leave the bailout untill 2013, if you think any Irish government would have been able to go cap in hand to the IMF etc looking for billions to build houses on the back of a building market crash you are dreaming.

    The Celtic tiger builders were long gone by the end of 2009 at the latest, when there is no money coming in you don’t hang around in hope.

    The notion that any government could have or is going to lure people back to construction is also a pipe dream.
    We have long memories.
    The government has a target of 10,000 apprenticeships per year, they are nowhere near it.
    And the number is falling.

    That said, FG and FF were welded to the idea of market lead housing for far too long.

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    Oct 3rd 2023, 6:05 PM

    @another one? what’s going on is the semi state sec:
    I believe SF will shift the focus even more to social housing, not a bad thing, but it will come at an eye-watering cost. The only way that can be done in the short or medium term will be making it more profitable for the builders to work on social housing than private, thus reducing the number of private housing built and increasing the number of people who need social housing.
    Around around we go.

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    Mute Harry Whelks
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    Oct 3rd 2023, 9:01 PM

    @P.J. Nolan: ah a vote for change. How refreshing? You can have good changes and bad changes though – just ask the folks who voted Brexit through because they felt like a change was needed.

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    Mute Keego
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    Oct 3rd 2023, 8:09 AM

    If there’s an election soon then expect it to be a give away budget for votes

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    Oct 3rd 2023, 8:38 AM

    @Keego: Will be over a year away as they want to feather their nests more before their eviction. Next Budget will be a real attempted bribe to electorate. Waving our own money at us.

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    Mute Gearoid MacEachaidh
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    Oct 3rd 2023, 8:54 AM

    What was their reason for the massive giveaway budget last year then?

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    Mute Peter Barnwallace
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    Oct 3rd 2023, 8:59 AM

    @Keego: there’s a budget every year

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    Oct 3rd 2023, 9:03 AM

    @Gearoid MacEachaidh: It wasn’t really tbh. They creamed it from high taxes on the huge rise in energy costs. They were saving face from mass demonstrations. Temporary bribes to keep the sheep in order.

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    Mute he didnt take the 120k because he already got it s
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    Oct 3rd 2023, 9:37 AM

    @Gearoid MacEachaidh: giveaway budget? I didnt get anything from last year’s budget or the 5 before that

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    Mute M Ryan
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    Oct 3rd 2023, 12:00 PM

    @Gearoid MacEachaidh: what massive give away budget are you referring to??

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    Mute Gearoid MacEachaidh
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    Oct 3rd 2023, 6:10 PM

    @M Ryan: this is a response to all of the above. People are saying this is a budget to buy votes. But last year’s budget was the biggest in the history of the state. Some people are say they didn’t get anything, I guess they gave back their ekectricy credits or something, but that’s besides the point. The fact is (and facts are important) that last year’s budget was the biggest ever and if this year’s smaller budget is to “buy votes” what was the reason for last years? The only sheep are the people that think the rest of us are sheep. Some of us are capable of critical thinking.

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    Mute Fintan Stack
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    Oct 3rd 2023, 11:20 AM

    It’s high time those who keep this country get a solid budget! Sizeable increase in 20% band, reduce top rate remove/reduce usc, increase tax credits, reduce VAT, reduce excise at the pumps. No giving from one hand only to take with the other. No more smoke and mirrors. 16 years of being fleeced needs to end now.

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    Mute NoelDublin
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    Oct 3rd 2023, 9:07 AM

    Taxing vaping is a terrible idea. It will further conflate it with smoking and discourage more smokers from quitting tobacco. They need to follow the science not Google misinformation. Here’s NHS advice.https://www.nhs.uk/better-health/quit-smoking/vaping-to-quit-smoking/vaping-myths-and-the-facts/

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    Oct 3rd 2023, 9:25 AM

    @NoelDublin: Agree. It’s just another side tax to fleece the poor. They could tax the huge multinationals who are making huge profits from destroying our environment with data centres etc. But that’s very unlikely.

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    Mute Em Wa
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    Oct 3rd 2023, 12:27 PM

    @NoelDublin: Everyone who wants to berate former smokers for vaping should click this link. If it wasn’t for e-cigarettes I would still be smoking 20 a day. I can’t stand the smell or taste of tobacco anymore though so rely on a practically flavourless one called sapphire. It’s not fruity or sugary so I would hope it the plan is to ban flavoured vapes that they don’t target these types of oils too just because they are not tobacco.

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    Mute Bren
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    Oct 3rd 2023, 9:00 AM

    Reduction in the collage fees is a big step for a lot of people

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    Oct 3rd 2023, 9:07 AM

    @Bren: Can be expensive putting a good Collage together in fairness.

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    Mute Eleanor Drumgoole
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    Oct 4th 2023, 8:13 AM

    @Bren: not enough of a step anyone wishing to pursue master’s degrees get no help unless they and their parents earned under 25000 because my daughter worked while waiting on her course we were over the limit she’s had to take on a €12000 toward fees and accommodation because she wants to better her chances at a good job she’d get help if it was a stem subject but if we continue to push everyone into stem orientated jobs the market will be over flooded

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    Mute Chris O'Brien
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    Oct 3rd 2023, 10:41 AM

    Hi. We’re FFFG. We can’t help you very much, because we’ve mismanaged everything to the point of collapse. So, sure, you can’t pay your electricity bill, but it’s not our fault, because we’ve spent generations mismanaging the health services. I mean c’mon, the world’s 80th worst healthcare system didn’t happen accidentally. That took years of work. And yes, when you destroy a healthcare system through mismanagement, it’ll cost everyone. Sometimes a few hundred million. Sometimes a billion.

    So don’t blame us, we’re just the victims of FFFG. Just like you.

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    Mute Paul H
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    Oct 3rd 2023, 9:20 AM

    Out out out with these con artists.

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    Mute P.J. Nolan
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    Oct 3rd 2023, 11:05 AM

    @Paul H:
    And in with the new ones.

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    Mute Stephen Flood
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    Oct 3rd 2023, 6:11 PM

    MM said in 2014 we need to abolish the USC charge 10 years later were still paying for it,, then you have people on the dole getting bonuses (double payment), shocking,, there is jobs out there.
    We need change in government not saying it’s gonna change anything, but ffg have destroyed this country and they need to be replaced

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    Mute john mac
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    Oct 3rd 2023, 1:59 PM

    Importers of steel etc, now have to pay a carbon import tax and have to show the carbon footprint of the company who makes the steel or they will be fined by tonnage ,its another tax that hits people directly because the price of steel etc, will rise in price and passed on to the people, it’s just becoming tax,tax tax

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    Mute Chris O'Brien
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    Oct 3rd 2023, 11:02 AM

    Remember this from the Journal:

    “Apart from the impact on family and lives, there is an ongoing cost to Irish society in general. Research would show that the socio-economic cost to Ireland each year is €1.8 billion.

    “Reasonable estimates show that 15% of adults getting treated by the Mental Health service with the HSE will have undiagnosed ADHD. We, as a society are overpaying for ignoring this condition and we will continue to pay €1.8bn each year till we do pay attention to it” he said.

    Mismanagement = waste and fraud

    And we keep voting for it.

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    Mute xmasbride
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    Oct 3rd 2023, 8:13 AM

    Sure the usc is only around 2 euro to the normal working person.

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    Mute another one? what's going on is the semi state sec
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    Oct 3rd 2023, 11:50 AM

    @xmasbride: It really is just giving us breadcrumbs. USC take last year was approx 5 billion. Income tax take last year was 8 billion more than in 2019. Why is it needed at all other than to expand departmental budgets and waste taxpayers money……. When we talk about the greed of big businesses the Irish govt are one of the biggest offenders….. then throw on top of it the incompetence and mismanagement.

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    Mute TheUnrepresented
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    Oct 3rd 2023, 4:25 PM

    The question “what can we expect” – very poor value decisions for taxpayers and their monies. Government have a zero record of getting any value for money in any pursuit. The migrant spend is 4 bn per annum now and growing by the day. The total national spend to run ireland is just slightly over 100 bn. Nobody asking the hard questions. The 4bn sits pretty large against a budget package of 6.5bn as mentioned in the article. What would an extra 4bn do for the various causes that need government attention? No debate allowed on priorities for spending etc. To put the 4bn into context, Irelands total education budget is 9bn

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    Mute Ian McDonald
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    Oct 3rd 2023, 8:36 AM

    And they’re off!

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    Mute Mick Hanna
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    Oct 3rd 2023, 7:03 PM

    And Free Flip Flops for everybody in the audience!!!

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    Mute Tommy Haze
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    Oct 3rd 2023, 9:57 AM

    The sun, moon and stars.

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    Mute Dramafree 2023
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    Oct 3rd 2023, 3:33 PM

    Doesnt look like it will be anything to get excited about really. Some big gesture for the working people would be gratefully received!

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    Mute Fr. Todd Uncious
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    Oct 3rd 2023, 5:13 PM

    Oh now comments are open !!!

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    Mute sam o brien
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    Oct 3rd 2023, 4:26 PM

    Help the landlords great ideaa especially td/landlords….corrupt.

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    Mute Tommy445
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    Oct 4th 2023, 11:21 AM

    Justice for Enoch

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    Mute Eleanor Drumgoole
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    Oct 4th 2023, 8:02 AM

    Again, nothing really for low paid workers who will gain very little from the tax band and usc nothing for wfp with a lot on this payment being single parents of children over 7 paying out money for secondary schools and nothing for post graduate students many who get €4000 off their fees of €6000+ no maintenance and need to come up with nearly 12,000 for accommodation and fees yes you’ll see a raise in minimum wage which will actually take some out of the wfp with no added support as I minimum wage worker my income went down by €40 this year with the increase in minimum wage last year with no child dependent on wfp my btwfd havled to €25 and will be gone early next year I know qith the wage increase I will be worse off unless they address that their putting us further into proverty

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    Mute Mickey Fennessy
    Favourite Mickey Fennessy
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    Oct 4th 2023, 9:23 AM

    Why not pay the fuel allowance directly to the publicans. It’s where the majority of it goes

    5
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