Budget 2024: Social Welfare Increases, Minimum Wage Hike, and Tax Cuts Expected
Budget 2024 is fast approaching, with the announcement set to be made in less than two weeks on Tuesday, October 10. There is anticipation surrounding the changes that will be implemented in social welfare rates, minimum wage, and tax cuts. The total package is estimated to be €6.4 billion, with €1.15 billion allocated for tax cuts.
While the final details are still being prepared by the Government, certain aspects have been revealed so far. Minister for Social Protection Heather Humphreys has indicated that social welfare recipients can expect an increase across the board. She acknowledged the lump sum payments made in previous years and believes it would not be unreasonable to expect a boost in social welfare payments. The specific amount, however, is yet to be decided.
There are reports suggesting that pensioners may receive an increase of up to €20 per week. A Fine Gael source stated that the objective is to move the state pension from its current rate of €265 to €300 before the next election. This increase in pension funding is estimated to cost around €1.4 billion, exceeding last year’s expenditure of €880 million.
In terms of energy credits, the Government has assured the public that there will be some level of support towards energy bills this winter. However, the level of support is not expected to be as high as last year due to several factors such as moderate inflation and increased wages.
The minimum wage is another area of focus for Budget 2024. The Low Pay Commission has recommended an increase from €11.30 to €12.70. This proposed hike would result in an additional €54.60 per week for those working 39 hours. The government is currently considering the commission’s report and typically takes its recommendations into account when making decisions.
The possibility of cuts to the Universal Social Charge (USC) has also been raised. While Minister for Public Expenditure Paschal Donohoe has not ruled out this option, it will ultimately be decided by Minister for Finance Michael McGrath. Donohoe emphasized the importance of ensuring that workers do not face higher tax rates simply because they receive a wage increase.
As Budget 2024 approaches, anticipation builds for the changes that will be implemented in social welfare rates, minimum wage, and tax cuts. While the final details have yet to be confirmed, these proposed changes aim to provide support to various sectors of society and address key areas of concern. The public eagerly awaits the official announcement on October 10.
