HOUSEHOLDERS CAN EXPECT electricity credits of between €300 and €400 between now and early next year, The Journal understands.
Meanwhile, while it had been mooted that that renters tax credit would only reach around €800 in this years budget, senior government sources have said that the €1,000 is not of the table yet.
In addition, it is understood that Education Minister Norma Foley will roll out free school books up to junior cycle.
Gardaí trainee allowance will also see a boost, rising from €185 per week to €305 per week, in a bid to recruit and retain gardaí in the force, it is understood.
Tax breaks for landlords will also feature in Tuesday’s budget with speculation they could see up to 20% reduction in tax and expenses paid on their rental income.
It has also been indicated that further reductions in public transport fares is not on the cards for this year’s budget.
While Taoiseach Leo Varadkar indicated this week that the average worker would see €1,000 put back in their pockets, the sentiment was downplayed by a number of government sources, who said that it would not be the case that such a reduction would come in the form of tax breaks.
Speaking yesterday evening at the Fianna Fáil President’s dinner in Dublin, Tánaiste Micheál Martin said “energy is clearly still an issue with many households. It was more severe last year, but it’s still it’s a significant issue. We want to get people through the winter”.
The Journal now understands that while at least two electricity credits will be rolled out, they will not be of the value of €600, as had been the case last year.
Instead, it will either be two €150 or two €200 energy credits that will be made available to households.
Coalition leaders, along with Finance Minister Michael McGrath and Public Expenditure Minister Paschal Donohoe, are to meet today at 4.30pm to hammer out the final details of next week’s budget.
Senior government sources said the meeting is likely to go on for at least five hours, given the number of outstanding issues.
The Journal understands that a number of departments are still yet to be signed off on, such as the Department of Health, the Department of Children, the Department of Tourism and the Department of Education.
The biggest headache in the budget talks is the Department of Health, along with the Department of Children – both of which had to receive supplementary estimates this year after budget overruns.
The runaway train that is the health spend is understood to be eating into new spending for 2024, with sources stating that the financial systems are a serious concern for the Department of Finance.
Described as “not up to scratch”, it is believed that spending data being presented is months out of date, with concerns being raised about the system that is currently in operation to keep track of current health spending.
As first flagged by The Journal in August, there is a €1.1 billion shortfall in the health budget, which has resulted in the roll out of cost saving measures, such as the ban on the recruitment of any new managers and administrative staff for the rest of this year.
This has resulted in industrial action being taken by staff yesterday.
A senior source said that the health budget will continue to be worked on this weekend, and while “challenging”, they said an agreement would be reached.
One Government source stated that no matter what budget agreement is reached, the Department of Health will require another supplementary budget in the year ahead.
It is understood that there is a collective agreement that mental health services should be protected, regardless of the pressure on the finances.
Another department also in the red is the Department of Children. It is understood that Minister Roderic O’Gorman held meetings with Donohoe yesterday to deal with some outstanding issues, such as childcare costs, which is unlikely to see a further 25% cut.
Sources highlighted that O’Gorman’s department is now over the remit of disability services, which is a factor in terms of ensuring that services can be improved in this year’s budget.
Speaking at the Fianna Fáil President’s dinner last night in Dublin, Finance Minister Michael McGrath said people can expect to see their standard of living improve because of next week’s budget announcement.
Speaking to reporters in Dublin this evening, McGrath said the budget he plans to announce on Tuesday will give “optimism that living standards are about to improve for people”.
He said people can expect their “incomes will rise ahead of the rate of inflation, that people will make gains in real terms and their life will be better. And I think that is fundamentally what we will be laying out,” said the finance minister.
We know that a lot of people are genuinely hurting.
“The truth is that it’s a mixed picture. Many people have been able to absorb the cost of living increases, with a degree of comfort, but for others, it has put them on a real strain.
“And I think when you look at the big picture, over the last 12 to 18 months, some people have had a deterioration in their living standards because their income hasn’t increased in line with inflation. I do believe that that is about to change and I think what we will lay out on Budget Day,” said McGrath.
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