Budget 2024: What you need to know 

USC has been reduced to 4%, while PRSI will increase by 0.1% next year. 
Ellen Kenny
Ellen Kenny

3:25 PM - 10 Oct 2023

Budget 2024: What you need to...


Budget 2024: What you need to know 

Ellen Kenny
Ellen Kenny

3:25 PM - 10 Oct 2023

Ministers Michael McGrath and Paschal Donohoe have unveiled a budget worth €14 billion for 2024. 

Among the much-anticipated announcements is an increase in the rent tax credit, a reduction in childcare costs and the expansion of discounted public transport to 25-year-olds. 

USC has been reduced to 4%, while PRSI will increase by 0.1% next year. 

New costs to the consumer include an increased carbon tax and increased taxes on a packet of cigarettes. 

Here's everything you need to know about Budget 2024: 


  • All weekly social welfare and pension payments will increase by €12 
  • Christmas bonus will be paid in full in early December 
  • €300 lump sum payment will be introduced for fuel allowance recipients 
  • Living Alone Allowance recipients to receive €200 lump sum 
  • A once-off €400 payment will be given to those who get Carers Allowance and Disability Allowance 
  • A once-off double week cost-of living support payment to all Social Protection recipients will be paid in January 


  • The lower tax band will rise by €2,000 to €42,000. 
  • Pay-related Social Insurance to increase by 0.1% from October 2024 
  • Personal employee PAYE and earned income tax credits to increase by €100. 
  • Universal Social Charge (USC) to drop from 4.5% to 4%. 
  • The entry rate into the third band of USC has been raised to €25,760 
  • The 9% VAT rate for gas electricity is to be extended for another 12 months 
  • Rental tax credit has been increased to €750 
  • Small landlords’ rental income of €3,000 will be disregarded in 2024, €4,000 in 2025 and €5,000 in 2026 and 2027 
  • Three energy credits of €150 each to be provided between the end of this year and April of next year 
  • Carbon tax will rise from €48.50 per tonne to €56 per tonne from October 11th 
  • The VAT on e-books will reduce from 9% to zero in January, bringing it in line with printed books 

Cost of living 

  • A cost-of-living package worth €2.7 billion will be introduced based on windfall revenues from energy sector 
  • Minimum wage is to increase by €1.40 to €12.70 
  • A packet of cigarettes will increase by 75 cents, raising the price to €16.75 
  • A domestic tax on e-cigarettes will be introduced in next year’s budget 
  • A Future for Ireland fund with potential to grow to over €100 billion will be introduced to help meet the costs of running the State in the future. 
  • The 50% discount on public transport extended for two years and expanded to 25-year-olds up to their 26th birthday 

Parents and families 

  • Child Benefit will be expanded to include 18-year-olds in full-time education 
  • A 25% reduction in childcare costs will be implemented from September 2024 
  • Home carer and single person child carer credits will rise by €100 
  • Double payment of Child Benefit to be paid before Christmas 
  • Double payment will also be given to those receiving Foster Care Benefit 
  • The Parents Benefit will be extended to nine weeks from August 2024 
  • The income threshold for the Working Family Payment will increase by €54 per week 


  • €25 million to be added to the Garda Overtime Budget 
  • 1000 Gardaí and up to 250 civilian staff in specialist roles to be hired in An Garda Siochana. 
  • €9 million to be invested in Local Enterprise Officers 
  • €250 million scheme for business supports is to be established 
  • €348 million will be invested into the National Broadband Plan to support remote workers 


  • €22.5 billion to be invested in the Department of Health 
  • €1.23 billion to be provide through the National Development Plan for infrastructure, including an €808 million increase in core current funding 
  • €64 million to be invested in disability service 


  • €7 billion to be invested into the Department of Housing 
  • €1.9 billion to be invested to build 9,300 new social housing units 
  • The Help to Buy scheme has been extended to the end of 2025 
  • A one-year mortgage tax relief will make 165,000 mortgage holders eligible for up to €1,250 
  • The Vacant Homes Tax will be increased to five times the property’s existing basic Local Property Tax 
  • €90 million will be spent for the retrofitting of social homes 


  • 740 additional teachers to support those with special educational needs 
  • Free schoolbooks scheme to be extended to Junior Cycle secondary school students 
  • Fee waivers for school transport and State exams to be introduced 
  • Hot school meals will be expanded to a further 900 primary schools from August 24th 
  • 33% cut in contribution fees for apprentices 
  • A €1,000 cut on the college contribution fee will apply to all students 
  • Third-level students living in digs and/or their parents will be eligible for the rental tax credit 
  • Student grants to increase by €300 from January 

Climate and Environment 

  • €14 billion will be put aside for the new Infrastructure Climate and Nature Fund by 2025 
  • The fund will have a climate and nature component worth over €3 billion to help with carbon budgets through capital projects where climate targets aren't being reached 
  • A tax disregard up to €400 per year will apply to those who have renewable energy supplies on their home 
  • The consanguinity relief will be extended for five years to support transfer of farms from one generation to another 
  • €380 million to be invested in residential and community energy schemes 
  • €32m in carbon tax funding will be provided to support up to 50,000 farmers to improve biodiversity, climate, air and water quality outcomes 
  • €700 million to be invested into farmers using “agri-environmental practices” 

Read more about

Budget 2024 Costs

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