Average worker will be barely €20 a month better off after tomorrows boring Budget

With final talks going on today between Cabinet ministers ahead of Budget 2018, here are some of the things expected to be announced by Minister For Finance Paschal Donohoe when he presents his plans in the Dail tomorrow. 

  • Introduction of a long-planned working family payment is expected which will top up wages of low income families. Parents of families with children on minimum wage would see a €2.45 per hour top-up, worth €98 a week for someone working 40 hours.
  • A USC cut on earnings up to €70,000 while current threshold of €33,800 for higher rate of income tax expected to be raised.
  • It’s speculated that the average worker will less than €20 better off each month under these tax changes.
  • Old-age pension is expected to increase €5, like it did in last year’s budget, but this may not come into effect until March
  • Telephone allowance also expected to be reintroduced. Not known if social welfare payments will be increased in line with pensions.
  • Christmas bonuses are also expected for social welfare and pension recipients this year, but not at the full rate.
  • Revenue-raising measures are expected to include a higher stamp duty for the sale of commercial property, taking advantage of the office block boom going on in urban areas like Cork and Dublin.
  • Packet of 20 cigarettes to increase by 50c to €11.50.
  • No indication that alcohol excise will go up, but this may come later in the year under new alcohol legislation currently going through the Oireachtas. A sugar tax is also expected to be announced, but will not go into effect until April, in line with the same tax being introduced in the UK.
  • No increase on petrol or diesel expected