Thomas Lyons 
As Taoiseach Leo Varadkar is set to announce a €1.2bn ‘spring bonus’ package today, a source close to the Government has revealed that the package will consist of a €100 child benefit payment bonus, a €100 increase in the Back to School allowance and an extra €200 in the State pension.
The source also confirmed that the welfare package of €350m will comprise one-off increases of €200 for the most vulnerable people in society – including pensioners, jobseekers, carers, widows, lone parents and those on the disability payment – to be paid within the next three to four weeks.
The one-off bonus child benefit payment of €100 will be paid to around 638,000 families across the country in respect of up to 1.2 million children. This is a reduction from the €170m temporary doubling of the €140 payment introduced in last year’s Budget.
The means-tested Back to School Clothing and Footwear Allowance will also be increased by €100 on a one-off basis this July, meaning parents will receive €260 for a child aged from 4 to 11 and €385 for a child aged from 12 to 22.
The majority of the spending, totalling €1.2bn, will come through tax measures, most notably the costly retention of the 15c and 20c on petrol and diesel.
The Green Party is pushing for the reductions to end, as scheduled, at the end of the month, but others in the Government have proposed to phase them out incrementally.
The AA has warned that ending the temporary price reduction would result in a €10 jump in the price of filling up an average tank of fuel.
The Hot School Meals Programme for Primary Schools is also set to be expanded, as well as a three-month extension and increase of the Temporary Business Emergency Support Scheme from €10,000 to €12,500.
The reduced VAT rate of 9% on gas and electricity, as well as the hospitality sector, will both remain until August.
Cabinet is expected to sign off the final details of the package this morning, providing welcome relief to parents and pensioners alike.
