main banner

How-Will-The-2018-Budget-Benefit-Your-Family

How Will The 2018 Budget Benefit Your Family?

There’s good news for parents in the new budget, as a series of ‘anomalies’ in the ECCE (Early Childhood Care and Education Scheme) are being closed; meaning the average entitlement for toddlers will increase from 61 to 76 weeks.

Previously, these entitlements varied according to the month of your child’s birth; so a child born in September 2015 was entitled to 61 weeks of free pre-school, but a child born a month earlier was entitled to 76 weeks.

Read Next: How Much Does Childcare Cost In Ireland

From next September, all children aged between three and four will be entitled to two full years of free preschool; a change that will benefit an estimated 20,000 toddlers. There won’t be an increase in the childcare subsidies which kicked in last month; but money has been set aside to encourage more providers to sign up to the Affordable Childcare Scheme.

It’s a big day for Paschal Donohoe in his first Budget Speech as Finance Minister; which will emphasise the Government’s wish to help working families. Overall, the allocation for the ECCE will increase by €34m to €490m; and the child and family agency Tusla will receive an extra €37m, bringing their total funding to €750m. This will be utilised through an increase in the number of frontline staff, and a greater investment in IT.

Work

The Budget announcement will also reveal cuts to the Universal Social Charge (the 2.5pc rate of USC by 0.5pc and the middle 5pc rate by 0.25pc) a widening of the tax band and an increase in tax credit for the self-employed. These measures mean that the average worker will take home an extra €20 every month. The minimum wage will also increase by 30 cents to €9.55 per hour.

­Housing

As well as retaining the current ‘Help To Buy’ scheme for first time buyers, and mortgage interest relief options; Mr Donohoe will announce a €400m increase in spending on social housing, as well as a new scheme targeted at people who don’t qualify for a local authority house, but can’t afford a mortgage.

So where is the money coming from?

One of the major changes, is a major increase to stamp duty for commercial property sales, and increases to employers’ PRSI. There is also a clear emphasis on encouraging healthy living; with the introduction of asugar tax’, and an increase of up to 50c on a packet of cigarettes. So if you’ve been thinking of making over your lifestyle in the new year, now there is certainly financial incentive to do so!

Full details of the budget for 2018 will be announced later today. So what do you think of the changes so far, and how will this affect your family? We’d love to hear.


About the Author

eumom team 

Comments

Please login to leave a comment.