Budget 2024 – Key Updates

One Family has outlined below the main changes in Budget 2024 announced on 10th October 2023, which may impact on people parenting alone. If you have any further queries, please call the askonefamily helpline Monday-Friday on 0818 662212 or 01 6629212 or email us at helpline@onefamily.ie. You can see the fact sheet as a pdf here.

Social Welfare Supports

Core Social Welfare Payments

• Maximum rate of all core weekly payments increases by €12 from January 2024 including One-Parent Family Payment, Jobseeker’s Transitional Payment, Jobseeker’s Allowance and Carer’s Allowance.  There will be proportionate increases for people getting a reduced rate of payment. 
• The Increase for a Qualified Child for dependent children aged 12 and over increases by €4, to €54, in all weekly payments from January 2024. 
• The Increase for a Qualified Child rate of payment for dependent children up to age 12 increases by €4, to €46, in all weekly payments from January 2024. 
• €12 increase in Maternity/Paternity/Adoptive/Parent’s Benefit from January 2024. 
• Child Benefit will be paid to 18-year-olds in full time education, from September 2024. The payment will stop in the month of their 19th birthday. 
• Payment of Parent’s Benefit will increase from 7 weeks to 9 weeks in August 2024. 

Bonus Payments – Cost of Living Measures

• Return of full Christmas Bonus for those on certain social welfare payments has been confirmed. 100% Christmas Bonus will be paid in early December 2023. 
• Cost of Living Double Payment will be paid in January 2024 to people receiving social welfare payments including One-Parent Family Payment, Jobseeker’s Transitional Payment, Jobseeker’s Allowance, Disability Allowance and Carer’s Allowance. This will be paid at the new higher payment rates. 
• Double Payment of Child Benefit of €280 per child will be paid to all families with children in November 2023. 
• All domestic electricity customers, regardless of income, will get €450 credit to help reduce electricity bills. The credit will be paid in 3 instalments of €150 each between November 2023 and April 2024. 
• €100 cost of living lump sum payment for people getting an Increase for a Qualified Child. This will be paid for each qualified child on your core social welfare payment in November 2023. 

Working Family Payment

• €400 Cost of Living Lump Sum Payment will be paid to all families in receipt of the Working Family Payment in November 2023. 
• The Working Family Payment threshold will increase by €54 per week regardless of family size from January 2024 in line with increases to the minimum wage. This means more people may qualify for the payment. If you already receive it, you may see a small increase in your weekly payment, depending on your net household income. Please note any increases in your net take home pay or social welfare payments will be included in the means test at your next review. The new Working Family Payment income thresholds are: One child- €645; Two children- €746; Three children- €847; Four children-€938; Five children- €1,064; Six children- €1,180; Seven children- €1,316 and Eight or more children- €1,412.

Fuel Allowance

• Fuel Allowance weekly rate remains at €33 per week. 
• Current recipients of Fuel Allowance will get an additional once-off payment of €300 this winter in November 2023. 

Supports for Carers & People with Disabilities

• €12 increase in the maximum weekly rate of Carer’s Allowance & Carer’s Benefit with proportionate increases for people receiving a reduced rate from January 2024. 
• €400 Cost of Living Payment for people receiving Carer’s Support Grant or Domiciliary Care Allowance will be paid in November 2023. There will be only one payment per person/household. 
• €400 cost of living lump sum payment for people getting Disability Allowance , Blind Pension or Invalidity Pension in November 2023. 
• €200 Lump Sum Payment for people with a disability receiving the Living Alone Allowance in November 2023. 
• Domiciliary Care Allowance will increase by €10 to €340 per month with effect from January 2024. 
• Carer’s Allowance income disregard increased to €450 for a single person and €900 for a couple. This is the amount of assessable household income that is excluded from the means test.

Childcare

• The Universal Childcare Subsidy will be increased from €1.40 per hour to €2.14 per hour from September 2024. The universal subsidy available under the National Childcare Scheme to all children under 15, allows children availing of Tusla registered preschool and childcare to receive a subsidy to offset fees regardless of income or means.   

Education – Primary & Third Level

• From the 2024/25 academic year, schoolbooks up to and including Junior Cycle in secondary schools will be free.  
• The Hot School Meals programme will be introduced on a phased basis in 2024, to all non-DEIS primary schools who applied as part of the expression of interest. 
• The Student Contribution is reduced by a further €1000 for higher education students eligible for the free fees initiative. This applies from the 2023/24 academic year.  
• The Postgraduate Fee Grant will increase by €1,000 from €4,000 to €5,000 from the 2023/24 academic year.  
• Student maintenance grants for postgraduates will be fully restored from September 2024 on a similar basis to undergraduates. A pro-rata increase will also be effective from January 2024. 
• A once-off reduction of 33 per cent in the student contribution fee for apprentices in higher education. 
• From September 2024, a part-time fee grant scheme is being developed to provide support for students who are undertaking eligible undergraduate part time programmes leading to a major award, both in-person/ blended and online. A SUSI administered means test will determine eligibility for this scheme. Applicants with reckonable incomes under €55,924 will be able to apply.
• Post Leaving Cert (PLC) fees will be removed from September 2024. An increase to all non-adjacent SUSI maintenance rates by €615 and adjacent maintenance rates by 10% from September 2024. Eligible PLC and Undergraduate students will see a pro-rata increase effective from January 2024. 

Taxation

• National minimum wage up €1.40 to €12.70 per hour, effective from January 2024. 
• The Personal, Employee and Earned Income tax credits will increase by €100 to €1,875 per year. 
• The Home Carer Tax Credit will increase by €100 to €1,800. 
• €200 increase in the Incapacitated Child Tax Credit from €3,300 to €3,500. 
• The Single Person Child Carer Credit will increase by €100 to €1,750 per year. 
• Single, widowed or surviving civil partners will have an increase of €2,000 in the income tax standard rate band cut-off point from €40,000 to €42,000. Anyone earning up to €42,000 will pay tax at the standard 20% rate. Any income over €42,000 will be taxed at the higher 40% rate. You may also qualify for Single Person Child Carer Credit which further increases the standard rate band by €4,000. 
• Those qualifying for the Single Person Child Carer Credit will have an increase of €2,000 in the income tax standard rate band cut-off point from €44,000 to €46,000. 
• The ceiling of the 2% USC band will increase to €25,760. The change was made to ensure the salary of a full-time worker on the minimum wage will remain outside the higher rates of USC. The USC exemption for medical card holders stays in place. 
• A reduction in the middle rate of Universal Social Charge (USC) from 4.5% to 4.0%. 
• Petrol and diesel prices will increase by up to 3 cent per litre, effective immediately, due to an increased carbon tax. An increase in fuel excise of 8 cent on petrol and 6 cent on diesel due at the end of October has been delayed. Excise cuts were introduced last year as part of efforts to ease the cost of living crisis and will now be restored in two installments, on April 1st and August 1st 2024. 

Housing

• Renters Tax Credit increased from €500 to €750 per year from January 2024. This only applies to private renters who are not currently receiving any other housing supports such as Housing Assistance Payment or Rent Supplement. The credit applies to each tenant rather than each tenancy.  
• Renters’ tax credit is being extended to parents who pay for student children’s rent in the case of Rent a Room accommodation or “digs”. This change will also apply retrospectively for the years 2022 and 2023. 
• The Help to Buy Scheme is extended until the end of 2025. 
• A temporary one-year mortgage interest relief tax credit will be introduced for taxpayers who have made payments in respect of a qualifying mortgage loan. The relief will be available to homeowners with an outstanding mortgage balance of between €80,000 and €500,000 as of 31 December 2022. The credit will be available in respect of 2023, on the increase in interest paid in 2023 over interest paid in 2022. The amount qualifying for relief at the standard rate of tax will be capped at €6,250 per residence, equivalent to a maximum tax credit of €1,250.

Transport

• Reduced fares of 20% on public transport are continuing until the end of 2024.  

Last Updated 11th October 2023