So, alongside the agreed €6.7 billion budget package, the Government is set to introduce a stand-alone once-off set of measures to help with the cost of living which could top €3 billion.
A flat-rate energy credit may not be suitable for businesses as the range of energy bills is much greater than for homes, and the Government wants to find ways to target the supports at the businesses that need them most. On taxes, Varadkar’s brainstorm of a new 30 per cent rate has been largely shot down, and relief is more likely to come in the form of a widening of the tax bands, extending the rate at which people start paying the higher income tax rate. There could also be tweaks to Universal Social Charge.
There have already been two extra fuel allowance payments this year — €125 in March and €100 in May — and another one is expected, together with other possible tweaks to this scheme and other ones that target “fuel poor” households. The basic welfare measures delivered €5 a week extra in last year’s budget and this could rise to €12 to €15 this year — with more for many households through specific measures such as the fuel allowance.Schools also look set to receive a significant increase in funding as school managers call for a dramatic increase in capitation payments amid concern that parents’ voluntary contributions will be needed to keep schools warm and lit over the coming months.