BUDGET 2024 WAS announced on 10 October last, with a budget package of €14 billion being outlined in the Dáil.

Finance minister Michael McGrath said it was a budget framed against a backdrop of “global uncertainty”.

Public Expenditure Minister Paschal Donohoe remarked that the budget followed an approach of “not spending every cent today, leaving some aside for tomorrow”.

The package included a €5.3 billion increase in public spending and €1.4 billion for one-off cost-of-living supports.

Some measures kicked in immediately, others take effect from today, while more still won’t take hold until later in the year.

Here’s what you need to know:

Social welfare and cost-of-living

All domestic electricity customers will get €450 off their electricity bills as a result of Budget 2024.

The energy credit will be paid in the instalments of €150, the first of which was made towards the end of last year. 

The second will be made this month, while the third will be made in March.

From today, the maximum rate of all weekly social welfare payments will increase by €12, as well as proportional increases for qualified adults and people on reduced rates of payment.

Social welfare payments for a qualified child will also increase by €4.

Elsewhere, a once-off double week for all qualifying social welfare payments will be paid in the week beginning 29 January.

Working Family Payment income limits will increase by €54 across all family sizes this month, and the Domiciliary Care Allowance will increase by €10 to €340 per month.

People on Community Employment (CE), Tús, Rural Social Scheme or the Work Placement Experience Programme will get an increase of €12 per week.

Tax

From today, the ceiling for the 2% Universal Social Charge (USC) band will increase by €2,840, from €22,920 to €25,760.

However, the 4.5% USC rate that currently applies to incomes between €22,920 and €70,044 will be reduced to 4%.

The 4% rate will now apply to income between €25,760 and €70,044.

The reduced rate of USC for medical card holders is being extended until 31 December, 2025.

These reduced rates of USC apply to people who have a full medical card whose income is €60,000 or less a year.

The Rent Tax Credit has also been extended to parents of students renting a room or digs throughout this coming year and the tax credit will be available for the 2022 and 2023 tax years also.

Meanwhile, the previous 9% VAT rate on ebooks and audiobooks is reduced to zero from today.

Employment and Business

The national minimum wage has increased today by €1.40.

The new national minimum wage is now €12.70 per hour.

Elsewhere, Community Employment (CE), Tús and Work Placement Experience Programme (WPEP) weekly payments will increase by €12 from today.

For businesses, VAT registration thresholds have today increased to €40,000 for services and €80,000 for goods.

The Research and Development (R&D) Tax Credit has also increased from 25% to 30% on qualifying expenditure on R&D, while the first-year payment threshold has increased from €25,000 to €50,000.

Health, environment, education and childcare

From today, the age limit for free contraception has increased to include women aged 31.

Previously, only women aged 17-30 could get free contraception.

Also from today, the VAT rate for the supply and installation of solar panels in schools has been reduced to zero.

This month will also see the statutory Foster Care Allowance rate increase by €25 per week.

In November, the Foster Care Allowance for children under 12 will increase to €400 per week, and the Foster Care Allowance for children aged 12 and over will increase to €425 per week.

What comes into place later this year?

In August, Parent’s Leave and Parent’s Benefit will increase from seven weeks to nine weeks.

The Carer’s Allowance income disregard will increase to €450 for a single person and €900 for a couple from June.

It was announced in the budget that the Carbon Tax will increase by €7.50 per tonne of carbon dioxide emitted, from €48.50 to €56.00.

This has been applied since 11 October last for motor fuels and will affect all other fuels from 1 May.

In April, the minimum weekly hours threshold for eligibility for the Wage Subsidy Scheme for people with disabilities will be reduced from 21 to 15 hours.

From July, the Free Travel Scheme will be extended to people who are medically certified unfit to drive.

Within education, fees will be waived for State examinations held this year and free schoolbooks will be provided to Junior Cycle students from September.

And while the Post Leaving Certificate (PLC) participant contribution fee of €200 was abolished in 2022, students continue to face various other charges such as student services charges, application fees, exam fees and professional registration fees.

Additional funding was provided in Budget 2024 to abolish these charges and fees from September.

The Student Contribution fee will also be abolished for all incomes under €55,924 from September.

Also in September, the National Childcare Scheme hourly subsidy will increase from €1.40 to €2.14.

Elsewhere, all PRSI rates will increase by 0.1% on 1 October.