Budget 2024 to benefit working families, pensioners, and carers

However, an increase to the core rate of child benefit is unlikely.

Marathon talks between the three Government leaders, Finance Minister Michael McGrath and Minister for Public Expenditure Paschal Donohoe went on late into the night with a further round of discussions due on Monday.

However, Taoiseach Leo Varadkar has signalled that there will be a "good income tax and USC package".

While cuts to USC and an increase in the entry point to the higher rate of income tax to around €42,000 are now expected, a hike in PRSI could also be introduced from as early as January.

Social Protection Minister Heather Humphreys has been strongly pushing for the introduction of pay-related social welfare payments, however, it is accepted that this could only be rolled out in tandem with a jump in PRSI.

Anyone in receipt of a social welfare payment, including pensioners, carers, and those with a disability can now expect a weekly increase of at least €12 as sources last night indicated it could be even higher.

Ms Humphreys said: "I'll be pushing hard to deliver a strong package that supports households with the cost of living and puts money back in people's pockets. 

"And there's no secret that the groups I'm advocating strongly for are older people, are carers, people with disabilities, and working families."

While the majority of departments now have their allocations tied down, Mr Donohoe met with Ms Humphreys, Health Minister Stephen Donnelly and Children's Minister Roderic O'Gorman in a bid to reach an agreement on what is achievable this year.

After securing a 25% reduction in childcare fees last year, Mr O'Gorman has been pushing for a similar cut this year. 

However, he will have to weigh this up against investment in core allocations for childcare providers to ensure staff can be retained in the sector.

Among the measures expected to be announced on Tuesday are:

• Changes to USC, which would see the 4.5% rate drop to around 4%, while entry point to the second rate could also be increased.
• An increase in student grants of more than €300 this academic year. This will see the highest student grant go from €6,971 to €7,313.
• For the first time, post-graduate students will get grant support of up to €2,300.
• Lump sum payments to those on carers allowance, disability allowance, fuel allowance, and the living alone allowance, but these will be a lower level than last year.
• An increase in the weekly Garda training allowance, bringing it up to €305 from the current €184.payment.

Homeowners, small landlords and renters will also be in line for additional supports.

While some in Government had indicated that a mortgage interest relief scheme could see struggling homeowners receive around a month's repayment in support, equating to between €1,200 and €1,400, this was being significantly played down by senior coalition figures.

It is now expected that the relief scheme will be "much less and targeted".

There was some surprise last year when the Government decided against tax measures for landlords. 

What is now being described as a "modest" tax relief for small landlords will be included in this year's budget, but this will be linked to retaining properties in the rental market on a long-term basis.

Housing Minister Darragh O'Brien has been strongly pushing for a doubling of the €500 credit for renters. 

While Mr O'Brien may not get the full €1,000 credit across the line, sources have stressed that the support must be increased to at least €760 to reflect current average rents.