WITH THE BUDGET just a few days away, the negotiations at government level are set to come down to the wire over the weekend.\u00a0<\/p>\n
Opposition parties were out this week launching their alternative budgets, with a common theme running through all of them \u2013 the cost-of-living crisis and the rising cost of fuel.\u00a0<\/p>\n
It is something the government will also try to keep to the fore, but with lots of budget kite flying in recent months, and big promises being made, it\u2019s difficult to see how this year\u2019s budget is going to make anyone happy.\u00a0<\/p>\n
So what can we expect next Tuesday?\n<\/p>\n
Income tax\u00a0<\/p>\n
On income tax, we have already been told that tax cuts could be \u201cmodest\u201d and will probably only amount to a \u201cfew hundred euros\u201d for the average worker.\u00a0<\/p>\n
It is expected the tax cuts won\u2019t amount to more than \u20ac500, and that is probably being optimistic.<\/p>\n
It is more than most probably felt in their pockets last year due to the government choosing not to index the tax bands, but substantially less than the \u20ac1,000 people had returned to them in 2024<\/a>.<\/p>\n However, due to no adjustment in the tax bands last year, the question is will the government tinker with them enough to make any meaningful difference to people.\u00a0<\/p>\n Finance Minister Simon Harris has already said the rate at which people pay the higher rate of income tax is going to move, with speculation that it will be raised from \u20ac44,000 to \u20ac46,000.<\/p>\n Social Protection<\/p>\n Rumour has it that one of the big winners will be Social Protection Minister Dara Calleary.\u00a0<\/p>\n There has been talk this week about how much the pension will increase by, with the Taoiseach batting away suggestions that it might only rise by \u20ac7.50.<\/p>\n It\u2019s expected the rise will be above that but could be lower than \u20ac10. There will be targeted supports though for older people with an expansion of the fuel allowance.\u00a0<\/p>\n Calleary has also said he would like to target those who are living on their own, which points to an increase in the Living Alone Allowance.<\/p>\n There is unlikely to be any increase to the child benefit payment. The minister has also already confirmed that the second tier of child benefit, which seeks to target low-income households, will not be introduced in this budget.<\/p>\n There is often a disagreement between Fianna F\u00e1il and Fine Gael over increasing Jobseekers each year alongside other social welfare payments. Fianna F\u00e1il is often of the view that it should, while Fine Gael ministers have argued in the past that it should not. That is one to watch.<\/p>\n Childcare\u00a0<\/p>\n There has been lots of talk about how this year\u2019s budget will make real moves towards getting to the election promise of childcare costing only \u20ac200 per month per child for parents.\u00a0<\/p>\n Children\u2019s Minister Norma Foley has said this year will be a \u201cbreakthrough budget\u201d in getting childcare fees down<\/a>.<\/p>\n However, the minister has not specified by how much.\u00a0<\/p>\n \u201cI believe I have the support to make a very significant cut, if you like, or advancement in terms of achieving that goal of \u20ac200 in this budget,\u201d she said earlier this month.\u00a0<\/p>\n Harris confirmed to his parliamentary party this week that he intends to increase the Childcare Services Tax Relief threshold.<\/p>\n This relief is designed to encourage stay-at-home parents and people working part-time to provide childcare in their own homes.<\/p>\n The threshold has not increased since 2007.<\/p>\n The T\u00e1naiste also said childcare costs will be tackled through both fee reductions and the tax system in budget 2027.\u00a0<\/p>\n Fuel and energy<\/p>\n When it comes to energy, the Taoiseach was pretty clear that he doesn\u2019t think this year\u2019s budget has the \u201ccapacity\u201d for the roll-out of energy credits, but he has also said that nothing is off the table, so make that what you will.\u00a0<\/p>\n All the opposition parties have called for some form of energy credit for householders.\u00a0<\/p>\n What we can expect is carbon tax to be cut or significantly reduced on home-heating oil, with reductions on excise duty for petrol and diesel also set to be extended until next year.<\/p>\n As mentioned above, there will be an expansion of the fuel allowance.<\/p>\n Fuel Allowance is a payment to help with the cost of heating during the winter months, with payments of \u20ac38 per week starting in late September and ending in April. There\u2019s been speculation that there could be a lump sum payment of around \u20ac160 rather than a weekly increase.<\/p>\n Energy Minister Daragh O\u2019Brien told The Journal <\/a>earlier this month that he wants to introduce new energy grants in the upcoming budget. However, he confirmed he has no plans to increase existing grants.<\/p>\n Housing<\/p>\n An increase in the rent tax credit has been signalled by the finance minister.\u00a0<\/p>\n The credit currently amounts to \u20ac1,000 for a single individual and \u20ac2,000 for a jointly assessed couple. There\u2019s some expectation it should increase by at least \u20ac250.<\/p>\n One thing that sparked controversy in the run-up to the budget is Miche\u00e1l Martin stating that he has a \u201cfavourable disposition\u201d towards scrapping stamp duty for first-time buyers<\/a>.<\/p>\n \u00a0However, the finance minister was quick to shut down the discussion, stating that he has no plans to include it in this year\u2019s budget.<\/p>\n Housing Minister James Browne has been pushing for an increase to the Help-to-Buy scheme by \u20ac20,000; however, this has also ruffled feathers.\u00a0\u00a0<\/p>\n The existing Rent-a-Room scheme is set to get a boost. The scheme allows people to earn up to \u20ac14,000 a year tax-free if they rent out a room in their home to private tenants. It\u2019s been hinted that this could rise to \u20ac20,000.<\/p>\n Inheritance tax\u00a0<\/p>\n