Budget 2024 brought some major tax and higher education announcements, but some have been left disappointed with the lack of investment in digital skills.
Budget 2024 is finally here, with Minister for Finance Michael McGrath, TD, and Minister for Public Expenditure Paschal Donohoe, TD, laying out the national economic plans and strategies for the next year today (10 October) in the Dáil.
Among the various announcements were some measures that will impact Ireland’s workers, jobseekers and higher education students.
A number of tax announcements were made, including a personal income tax package valued at €1.3bn. The Irish SME Association (ISME) said that the tax package was “minimal but welcome”.
Personal, employee PAYE and earned income tax credits are being increased by €100 each; the standard rate income tax cut-off point is increasing by €2,000 to €42,000; and there will be a 0.5pc reduction in the rate of universal social charge (USC), dropping the rate to 4pc.
As well as this, the national minimum wage is increasing by €1.40 per hour to €12.70 per hour.
The entry threshold to the 4pc USC charge is increasing to €25,760 as a result of the increase in minimum wage.
There will also be a number of new social welfare payments, including a currently unspecified “once-off, double week” cost-of-living support payment applicable to those in receipt of a weekly social protection payment. This payment will be made in January and will be available to carers, pensioners, people on disability payments and jobseekers.
Weekly social protection payments will also be getting an increase of €12 per week.
For remote and hybrid workers, there were a couple of benefits announced relating to energy consumption. A number of tax credits will be supplied to households to cope with winter energy consumption, including three credits worth €150 each, as well as a €300 lump sum for recipients of the fuel allowance in the final quarter of this year.
Higher education, lower costs
As well as the adjustments to minimum wage and social welfare, a number of announcements were made in relation to lowering costs for higher education students.
Donohoe announced an allocation of €60m to address the “sustainable funding of higher education”.
Increases in rates of maintenance grants for students, as well as the restoration of maintenance grants for eligible postgrad students, will be incorporated from September 2024.
Additionally, a package of measures designed to decrease the cost of third-level education was announced today, which will benefit third-level students of the 2023/2024 academic year.
These measures include a reduction of €1,000 in the student contribution fee for students eligible for the free fees initiative, an increase of €1,000 for the Postgraduate Fee Contribution Grant, and a once-off reduction of 33pc in the contribution fee for apprentices in higher education.
As well as this, the Student Assistance Fund will receive an investment of €8.1m for the 2023/2024 academic year, and the renter’s tax credit will extend to parents who pay for their child’s rent-a-room accommodation or ‘digs’.
Also announced was the abolishment of student contribution fees for all incomes under €55,924, taking effect in September 2024.
Speaking about the announcements in relation to higher education, Donohoe said that “investing in further and higher education is investment in innovation, creativity and our future”.
“Disappointing” lack of digital skills
HR firm CIPD voiced its disappointment over a lack of announcement regarding an investment in computing and AI skills.
Mary Connaughton, director of CIPD Ireland, said that the failure to invest in the digital future of Ireland’s economy and labour force could have “serious implications”.
“We are known the world over for our talented and skilled workforce and with the proliferation of new roles in the tech sector as well as strong international competition, now is not the time to ease off investing in this area.”
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