An increase in core welfare rates along with the old age pension are expected to form part of the Budget which will be announced next month.

Indications from Government this evening suggest that this increase is necessary given rising living costs and the rates having remained unchanged for two years.

A hike in the order of €3 to €5 per week is said to be under consideration as the pre-Budget process intensifies from next week onwards.

There is also likely to be a debate around when the increase would take effect, with options later than 1 January 2022 likely to be examined.

Measures to offset rising energy costs are also expected to be the focus for ministers in the run-up to the Budget.

The Budget is also likely to see some tax indexation changes which would mean those whose earnings increase modestly will not have to pay the higher rate of tax.

A tax on unused zoned development land is set to be unveiled in the Budget. However, the vacant home tax will take some time to be introduced.

Reacting to reports of possible increases of €3 to €5 in core social welfare payments, Social Justice Ireland CEO Sean Healy said such a rise is not acceptable and needs to go much further.

Full details of the Budget will officially be announced on 12 October.

Read more
Budget 2022: Back to basics with annual drop of policy pitches