What we know about Budget 2024 so far - pension boost, tax cuts and €200 off electricity

With Budget 2024 just around the corner on October 10, there are plenty of possible measures floating around Government circles with some reaching the public through interviews, press releases and rumour.

While Finance Minister Michael McGrath has previously warned against a giveaway budget in order to safeguard the growing economy and public services, he and Public Expenditure Minister Paschal Donohoe look set to unveil to positive measures for workers, pensioners and those on social welfare.

While Social Justice Ireland has called for core Social Welfare rates to rise by at least €25 and other advocacy groups make their case for help, here are the five things likely to be announced next month.

Social welfare hike

Social Welfare rate will almost certainly increase in Budget 2024 as Ministers have repeatedly stated the importance of protecting the vulnerable in society. The Oireachtas Social Protection committee has recommended hikes of around 10% to ensure a decent standard of living for those on welfare. That would see most core payments increased by over €20 but the actual hike is likely to fall short of that. Similar calls for a €25 hike in last year's Budget were overzealous and the Government eventually landed on a €12 increase to most weekly rates. A rise between €10 and €15 is more realistic with some targeted increases elsewhere, including for those with disabilities and in terms of Child Benefit.

Pension hike

Tánaiste Micheál Martin has all but confirmed the State pension will increase in Budget 2024. He said: "we will be looking at increasing the pension. But again, I think it’s important that we look after pensioners and our senior citizens." He did stop short of giving a precise figure but following a €12 weekly hike last year, a similar figure could be on the cards this year given the cost of living crisis and inflation rate.

USC cut

Paschal Donohoe hinted over the weekend that one of the most controversial taxes on workers' wages could be cut in the Budget next month. The Universal Social Charge is deducted at source on payslips Speaking on RTE radio, Minister Donohoe said there was a precedent for changes being made to the USC and it being reduced. He said he and Minister McGrath are on the same page when it comes to giving workers some relief. For most workers in Ireland, the USC rate applied to their wage is 4.5%. It's now likely this will be cut in Budget 2024.

Higher entry point for higher rate tax band

Fine Gael has long held an ambition to increase the amount you can earn before hitting the higher tax rate of 40%. As of now, single people can earn up to €40,000 at the lower rate of 20% tax with anything above that being taxed at 40%. It's likely a small change will be made to this amount, possibly €2,000 increase at the lower rate. 

Energy credit

In Budget 2023, householders received a total of €600 in energy credits staggered between last autumn and March 2023. The three €200 were deducted from the electricity bills of every household in the country without exception. Those payments came as energy company announced price hike after price hike, crippling many billpayers. However, this year has seen the three main energy providers cut their rates by between 10% and 20% and that could impact the Government's decision on energy credits in the Budget. Despite the reduction, bills remain high for many people and indications from those in Government circles suggest at least one €200 winter energy bill credit will be included. Ministers have said publicly there will be supports for people with energy bills this winter.