Budget 2024: Expansion of free school books scheme and mortgage relief to come in
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Free school books for pupils in secondary school up to Junior Cycle are set to be announced in Tuesday's budget.
The understands the expansion of the free school book scheme will kick in for the next academic year and will impact 200,000 parents across the country.
Free school books will be provided for first-year, second-year and Junior Cycle pupils, sources have said.
There will also be an increase in funding for school transport and an expansion of the hot meals programme for schools.
Mortgage interest relief will also be announced for homeowners who have been badly hit by rate hikes. The measure will likely see these mortgage holders receive 20% of the rate increase, but it would be capped at a certain amount, with sources saying between €1,250 and €2,000.
It is understood the measure will be time-limited and likely only brought in for 2024. The mortgage interest relief is being described as "targeted" at those in financial difficulty.
Discussions are ongoing on the increase in social welfare rate with €12 on the table from January but sources said a slightly higher rate may be phased in throughout the year.
It is also understood that energy credits will be between €400-€450 for households across the country.
Landlords will get relief in the form of a tax credit, government sources have said, and it will be similar to the rent tax credit. “It will be no more than what renters get in their tax credit which will also be increased,” the source said.
Cuts to USC and an increase in the entry point to the higher rate of income tax to around €42,000 are now expected.
It is understood an increase in PRSI will be phased in next year but likely not in January. The Government has flagged a gradual increase will be required after deciding to keep the pension age at 66.
Sources also said there will be a cut to the cost of childcare for parents again. However, it may be phased in later in the year due to the cost of the move to the Exchequer. Children's Minister Roderic O’Gorman has been pushing for a 25% reduction again.
A source close to budget talks said it would have to be a reduced rate if cuts were to come in in January.
The cost-of-living package will be €2.3bn or higher, according to a government source and households will benefit from one-off payments. The price of a packet of cigarettes will also rise, likely to be either 20c or 50c, but there will be no increase to the price of alcohol.