14/10/2014 - 13:03:32
A €5 increase in child benefit, a partial restoration of the Christmas bonus scheme and changes to the entry level for the Universal Social Charge will form a major part of this afternoon's Budget.
A large majority of pensioners will also be handed an extra €100 to cover the cost of water charges, as the Government offers a number of sweeteners to the 'grey vote'.
Finance Minister Michael Noonan is expected to announce that a series of health charges for pensioners - including a prescription charge - will be frozen.
Other leaks confirmed today include a 20c or more hike in the price of a packet of cigarettes but that will be the only tax increase in the Government’s family-friendly Budget.
After considerable backlash over the introduction of water charges earlier this month, the Taoiseach has confirmed that the Budget will make water rates as “affordable and fair as possible” for all.
Plans to increase the entry level at which workers start paying the Universal Social Charge from €10,036 to €12,000 are also on the cards.
The Government has also earmarked plans to recruit more teachers and gardai.
The total cost of Budget 2015, including tax measures and spending, is expected to be between €800m to €900m.
Here are some of the Budget highlights expected today:
€100 payment to those on social welfare for water charges
Tax relief worth 20% on household bills
USC threshold raised from €10,500 to €12,000 and the introduction a fourth rate
The higher rate of income tax to come down from 41% to 40%
€200m for social housing
Tax relief for landowners who sell sites
Agri - incentives to help farmers to lease land
1,000 new teachers
9% VAT for hospitality sector to be maintained
Cigarettes up 20cent and no change in drink prices