A €2bn cost of living package will be announced alongside the Budget on Tuesday afternoon which will include double payments of a range of social welfare payments.
Along with income tax cuts, workers are expected to benefit from €100 increases in tax credits. This comes alongside the 1pc USC abolition and widening of the bands.
Meanwhile, a packet of 20 cigarettes looks set to increase again on health grounds, but there will be no added excise to motor fuels or alcohol.
The increase on a packed of smokes could be €1 per pack — double the 50 cent imposed last year, with pro-rata increases on other tobacco products, sources said.
Free hormone replacement therapy (HRT) will be rolled out for women following extensive campaigning.
The measure could save women who are prescribed HRT between €360 and €840 a year, based on women paying between €30 and €70 per month.
The prescription-based medicine is used by some women to relieve symptoms of menopause.
Funding will be contingent on prescriptions, and free HRT will be rolled out as part of a €35m women’s healthcare package.
The new scheme will be introduced in January 2025 and will see the State fund the cost to patients of medicines, patches or devices, such as coils.
VAT has been removed from HRT products in Budget 2023 to assist with the cost.
The single person tax credit will increase from €1,875 to €1,975, it has been suggested. The married persons or civil partners rate then becomes €3,850.
The employee Tax Credit and the Earned Income tax credit both also go up by a similar ratio, to reach €1,975.
Widowed person or surviving civil partner in year of bereavement moves from €3,750 to €3,850, with a similar move for a widowed person or surviving civil partner.
“These increases to tax credits are one of the few things that have been missed so far,” a well-placed source said. “They are good to go right now, once the three leaders sign off.”
The Single Person Child Carer Credit will increase, along with the Incapacitated Child Credit and the Blind Tax Credit.
Tánaiste Micheál Martin speaking about the budget at the opening of the new Civil Defence HQ in Dublin
There will also be hikes to the dependent relative tax credit and the home carer tax credit — which can be claimed by households in which one of the adults stays at home, to care for children, for instance, meaning a number of people at an address are dependent on a single wage.
Arts Minister Catherine Martin secured €35m in funding to continue her basic income for artists scheme which will see the programme extended and expanded.
Ms Martin also received €140m from the Arts Council and €8m for Culture Ireland which promotes Irish arts overseas.
There will be record funding for the Arts Council of €140 million, to enable further investment for young people and children, and additional support for artist, venues, and production companies.
Additional funding for Culture Ireland, resulting in the highest ever allocation of €8 million in 2025, will enhance the overseas promotion of Irish creatives.
The minister also received €61m to promote Ireland has a holiday destination at home and aboard.
A capital spend allocation of €36m for Fáilte Ireland will also allow the agency to continue and expand its product development, including new tourism attractions in the regions. The budget for the sport arm of her department has increased by 10pc to €250m.
The overall 2025 allocation for Sport is over €230m, which marks a 10pc increase in funding from 2024. Additional funding will go towards continued activity in Sport Ireland to build on the success of the Olympics and Paralympics in 2024 as well as funding for the FAI to support inclusion initiatives.
Meanwhile, Health Minister Stephen Donnelly secured €30m in funding for new medicines in 2025.
Stamp duty on the bulk buying of homes will be hiked to 15pc in a bid to halt vulture funds squeezing out first-time buyers.
The Coalition leaders had three options – to hike stamp duty to 15pc, to extend the period during which the homes are bought to 18 months or to decrease the number of homes to five.
They last night opted to hike stamp duty.
Housing Minister Darragh O’Brien is this afternoon pushing to extend the Help to Buy scheme to the end of the decade to give certainty to developers and buyers.
It is understood he is also keen for the scheme to be looked at in a way it could support single income households or single people who want to use the initiative to buy their first home.
However, it is understood any supports for single income households will not be tomorrow’s Budget, with one source saying these may be for discussions “down the line”.
The final budget for the Department of Housing is still to be signed off on.
Minister for Justice Helen McEntee is said to be putting significant focus on tackling domestic, sexual and gender-based violence with a budget allocation understood to bring spending for the area close to €70 million.
The funding will contribute to ensuring that the number of refuge spaces are doubled as part of the Zero Tolerance strategy.
Meanwhile it is also understood that criminal legal aid fees are to increase by 8pc from January, in a measure set to be announced tomorrow. This will build on the 10pc increase in legal aid fees this year.
Prison capacity and staffing are also set to see funding increases in Budget 2025 while a review is also underway on Thornton Hall as a location for another prison to be built.
Budget measures are expected to result in hundreds of additional prison staff, which will include prison officers. Some 200 additional staff will hired this year with 150 being hired next year.
The capital budget for the Irish Prison Service will also increase by over 70pc as part of plans to deliver 1,100 extra spaces in the system.
