Ireland is set to introduce a significant social welfare boost in 2024, which will bring much-needed financial relief to its citizens. As part of the country’s largest-ever social welfare budget, announced by Social Protection Minister Heather Humphreys, over 1.4 million people will see an increase in their payments. These adjustments, designed to help people cope with rising living costs, will come into effect on January 1st, 2024.
The main change? A €12 increase in the maximum weekly social welfare payment, which will benefit thousands of individuals and families across the country.
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Increase
Beginning January 1, 2024, all weekly social welfare payments will rise by €12. This increase includes adjustments for individuals on reduced payment rates. For families with dependent children, the weekly payment for a child will rise by €4. Children under 12 will now receive €46 per week, while children aged 12 and above will get €54 per week.
These changes are part of a broader effort to support families, including a €10 increase in the monthly domiciliary care allowance. This allowance, previously only available until the child’s 18th birthday, will now continue for those still enrolled in full-time education.
Pension
In 2024, state pension entitlements will also see changes. Workers can now choose to continue working beyond the current qualifying age of 66, up to age 70. This extended work period allows individuals to earn a 5% increase in their pension for every additional year worked. This adjustment benefits those who haven’t accumulated enough pension contributions by age 66 and gives caregivers new options regarding their entitlements.
Income Support
A vital aspect of the social welfare increase is the rise in the income threshold for the Working Family Payment. From January 2024, the threshold will increase by €54 per week. This ensures that families who receive this benefit won’t lose out as the minimum wage rises to €12.70 per hour.
This change is essential for many low-income families, ensuring that they can continue to qualify for much-needed support despite the higher wages.
Student Grants
Students will also feel the benefits of this expanded budget. From January 2024, over 50,000 students will receive an increase of more than €300 for the academic year. Grants for postgraduate students are also expected to increase, further supporting access to education and reducing financial burdens.
This increase in student funding demonstrates the government’s commitment to making education more affordable and accessible.
Energy Credit
Another highlight of the 2024 budget is the introduction of the second energy credit, worth €150, which will start appearing in recipients’ accounts from January. This credit will help offset rising energy costs and is especially important during the winter months when heating bills can soar.
Employment Programme
The 2024 budget doesn’t only focus on social welfare payments but also on supporting employment programs. Individuals participating in Community Employment (CE), Tús, the Rural Social Scheme, and the Work Placement Experience Program will see their weekly payments increase by €12.
These employment programs are essential for providing job opportunities and training for individuals, and this increase ensures that participants continue to receive adequate financial support.
One-Time Payment
Another important change includes a one-time doubling of social assistance payments by the end of January 2024. Individuals already eligible for the Christmas bonus payment will see it paid out at the new, increased rates starting the week of January 29. Additionally, a modest 0.1% increase in PRSI contributions will be implemented to ensure the sustainability of social protection funds.
Interestingly, while income tax rates remain unchanged at 20% and 40%, adjustments to tax credits and income tax bands are expected in 2024. This will provide some tax relief for individuals and families, further supporting them in managing their finances.
These changes are a clear indication of the government’s effort to provide financial stability and assistance to low-income families, students, pensioners, and individuals in employment schemes.
The Irish government’s 2024 social welfare increase aims to provide much-needed relief during a time of rising costs. Whether through enhanced payments, pension changes, or energy credits, the initiative reflects a focused approach to ensuring that citizens can meet their daily needs.
FAQs
All weekly payments will rise by €12 in January 2024.
Are child benefits increasing in 2024?
Yes, payments for children under 12 rise to €46, and those 12+ to €54.
Is there a pension increase in 2024?
Yes, pensions will increase by 5% for each additional year worked after age 66.
What is the new income threshold for Working Family Payment?
It will increase by €54 per week starting January 2024.
Will students receive more financial support in 2024?
Yes, students will see an increase of over €300 in grants.
