Defence Forces are in line for €50M boost
ENERGY CREDITS & PINTS AVOID HIKE EXTRA CHILD BENEFIT ..BUT CIGS UP AGAIN
THE Defence Forces are set for a multi-million euro cash boost in tomorrow’s Budget — and will use it to buy new gear to help protect personnel at home and abroad.
Sources have confirmed to The Star that Defence Minister Simon Coveney has secured a major increase in funding for the Army, Naval Service and Air Corps that will be unveiled in the Budget.
They said the figure was tens of millions — with some sources speculating that it was likely to be more than €50 million.
It’s understood cash will be used to kickstart a major re-equipment plan that was announced in July.
That plan, unveiled by Minister Coveney and Taoiseach Michel Martin, will see defence spending increase from around €1.1 billion now to €1.5 billion in five years.
The plan sees an increase in recruitment and for pay and conditions of personnel — but also includes much needed new equipment.
Sources have revealed that tomorrow’s Budget will start that process of improving military equipment.
It is thought the process will include new helicopters and at least one heavy lift transport aircraft, as well as ground radar to see what foreign military planes are in our skies.
Planes THE Government is set to unveil a raft of measures in the budget tomorrow to help struggling families tackle the cost of living crisis.
Two energy credits worth €300 each, an extra child benefit payment and a doubling of key welfare supports are all on the cards in Finance Minister Paschal Donohoe’s major budget giveaway.
Middle income earners will also save up to €500 a year through an adjustment in tax bands that will only see people enter the higher 40 per cent rate at €40,000.
Meanwhile, the price of a pint will be left alone to give hard-pressed punters some reprieve.
However, while they will be able to enjoy a drink for the same price this week, if they go out for a smoke it will cost them more as the tax on cigarettes is set to be hiked up again, by an expected 50c a pack.
Fuel
There will be no added pain for motorists, as the taxes on fuel will not go up, with cuts on excise introduced last April set to continue past February, at least.
And the cost of heating your home will be eased with two energy credits worth up to €300 each, one to hit our accounts before Christmas and another before March ends.
The giveaway will continue across all government departments, with social welfare one of the biggest winners in the tense Budget negotiations between line ministers and Mr McGrath.
There will be double welfare payments as part of the cost of living package, on top of a double payment again at Christmas.
Social Protection Minister Heather Humphreys fought for old people, arguing she didn’t want them to be afraid to turn on heat.
Agreement was reached last night to expand the fuel allowance bands so more pensioners will qualify.
The pension will go up too, by at least a tenner a week, but the battle to get it up to €20 is likely to be lost.
The Government will say it is supporting middle income families too, through an increase in the children’s allowance, although by how much has not been nailed down yet.
A source close to Ms Humphreys said she also “wants to help working families on low incomes by bringing more people into the Working Family Payment.”
Renters will finally get some reprieve with the reintroduction of the rent allowance that was scrapped after the financial crash a decade ago.
This could be worth up to €400 a year, but it may be closer to €200.
Commuters will continue to enjoy cut-price fares on public transport, with the 20 per cent slashed rate set to continue indefinitely.
In Health, the free GP care scheme will see another 400,000 children included, an expansion of the promise to bring all six and seven-year-olds under the umbrella.
This will see nearly half of the children in the State covered under the universal scheme, which will save parents hundreds a year in doctors’ bills.
Abolished
This is on top of the announcement last week that hospital fees for all under-16s have now been abolished.
The Government is set to unveil a total package with €10 billion worth of giveaways tomorrow, with another €4bn being put aside in case Covid, Brexit and Ukraine throw up unexpected costs next year.
The Budget will see close to €7bn in extra spending next year, while a separate cost of living package worth almost €3bn will be announced tomorrow.