Tánaiste says jobseekers won't be left out in Budget

Tánaiste Micheál Martin has dismissed reports that jobseekers will be left out of hikes to core welfare rates, describing it as "phoney spinning".

The Fianna Fáil leader effectively confirmed across-the-board increases in weekly welfare rates of €12, saying this was "stitched in" to the Summer Economic Statement and any increases beyond that would be "marginal".

He was responding to reports that Minister for Social Protection Heather Humphreys had called for all weekly rates - apart from Jobseekers Allowance for the long-term unemployed - to be increased by €15.

"There was never a big discussion about it. There's been a bit of miss-spin, a bit of mischief going on from a political point of view," he said.

"Because this only surfaced in the media, it had not surfaced in any of the meetings I attended," he said.

"It's surprising that that has happened and I made that clear to my colleagues, where did this all come from?" he asked.

He said the question of excluding jobseekers from rate increases never arose in the last four years of Government.

"There was never an issue made of this by any party in Government. It was always agreed that the same levels would apply because of pressures with inflation and coming out of the energy crisis because of the Ukraine war. So I think maybe it is the cycle we are in."

"The Summer Economic Statement gave the overall expenditure framework. Go back to that and you will see the €12 increase in the pension increase was stitched in to that.

"Nothing has changed since that and there has been no attempt to change that. Any differential would be marginal. So there's much ado about nothing."

Schoolbook scheme to be extended to senior cycle

The extension of the free schoolbook scheme to the senior cycle is among the measures set to be announced in tomorrow's Budget, following Government discussions last night.

Funding is also set to be provided for 1,500 more special needs assistants in schools.

Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe are holding a series of meetings with their Cabinet colleagues on the Budget, before a crunch meeting with the coalition leaders at 6:30pm.

It is understood the focus will be on social protection, a package for business and finalising the cost of living measures.

There are said to be ongoing discussions on a possible reduction in the VAT rate for the hospitality sector.

The cost of living package is set to include a €250 energy credit, but it is unclear if that will come in a single payment.

It is also unclear how big the cost of living package will be, but it is thought to be around €2 billion and will be paid out before Christmas.

Free public transport will be introduced for children under the age of nine, in a move long advocated by the Green Party.

Currently, only children under five qualify for free public transport.

Two double child benefit payments before Christmas also look set to be announced.

The Government is finalising a cost-of-living package of around €2 billion that will be paid out before Christmas.

The cost-of-living package is set to include a €250 energy credit and extra payments on things like the fuel and living alone allowances.

Other budget measures will include an extension of the Help to Buy Scheme to 2029 following a proposal from Minister Chambers.

The stamp duty rate on the bulk buying of homes is set to rise from 10% to 15% after a review of the tax was requested by the Taoiseach.

There are also said to be ongoing discussions on the VAT rate for the hospitality sector with these talks described as sensitive.

Additional reporting Mícheál Lehane