Budget 2016: Respite care payment to be restored

Tánaiste Joan Burton is preparing to undo a range of welfare cuts in tomorrow’s budget, including a full restoration of the respite care grant.

As the Taoiseach indicated his intention for a spring election, it emerged that the Government will reverse the €325 cut to the grant paid to more than 77,000 carers.

Ms Burton will also increase the Christmas bonus to €168 for a single person and €264 for a couple in tomorrow's budget, as well as increase the fuel allowance.

Senior Government sources indicated the budget would focus on two key themes: the economic recovery and family and childcare.

A reform of the Universal Social Charge will be the centrepiece of the Minister for Finance Michael Noonan’s tax package.

The top 7 per cent rate will be reduced to 5.5 per cent, the 3.5 per cent to 3 percent, and the 1.5 per cent to 1 per cent.

Minimum wage rise

A 50 cent increase in the minimum wage and new schemes aimed at enticing emigrants home will be unveiled.

The Government will also announce significant investment in childcare, including free pre-school from the age of three and an extension of the Community Childcare Subvention Programme, which offers disadvantaged parents reduced rates.

There will also be two weeks of paternity leave and a €5 increase in child benefit payment.

A reduction in the pupil- teacher ratio by one pupil to 27:1 has been agreed by Cabinet, meaning that Minister for Education Jan O’Sullivan will be able to hire an additional 300 teachers.

More gardaí

In the Department of Justice, Minister

Frances Fitzgerald

has secured funds to hire at least 500 additional gardaí. Senior sources have suggested she may be in a position to hire up to 700 by the end of the year.

Ms Fitzgerald will also invest heavily in specialist operations and surveillance in a bid to stem the number of burglaries.

There will also be increased funding for recruitment across a number of agencies, including in the courts, victim rights groups and the new Policing Authority.

The Minister for the Environment, Alan Kelly, has received additional current spending for housing, which is expected to be about €50 million.

Mr Kelly and Mr Noonan will meet again today to sign off on new housing measures ahead of the budget.

Developers’ grant

It is understood that the two Ministers have compromised on a grant for developers who sell homes for under €300,000.

The initiative would offer landlords compensation from the State in return for selling a home at below market value.

Mr Kelly has also received €2 million to make a contribution to the International Climate Change Fund.

As he announced his election intentions, Taoiseach Enda Kenny also indicated Fine Gael would abolish the Universal Social Charge and retain water charges if re-elected.

Mr Kenny also admitted that not enough was being done to tackle the hospital trolley crisis, insisting the current position was not satisfactory.