Workers will gain from income tax and USC changes

Income tax bills will fall across the board following the Budget.

A complex series of measures means the percentage gains across income levels vary significantly. And of course the Budget calculations do not include the water charges.

The biggest percentage gains come for those earning around €12,000, as they gain from the rise in the USC ceiling. This delivers €5 a week to the group benefiting.

Higher up the income scale the impact varies, though everyone gets some benefit. Those earning between €15,000 and €35,000 get limited benefits, while the extension of the standard income tax rate band means bigger gains, particularly for those earning over €40,000.

For a single person, those on incomes of €25,000 gain €3 a week, while those on incomes of €45,000 get an extra €10.

There are two other things to note. One is that the increase in child benefit means families with children do significantly better. The second is that changes to USC rates - including a 1 per cent hike on incomes over €70,000 - significantly limit the gains of the cut in the higher income tax rate to higher earners.

The self-employed are also hit with a one point hike in the special 10 per cent USC rate on incomes over €100,000.

While all this limits the gains to higher earners, they will still be better off.

In many cases, their percentage gains are lower than those on more modest earners, even if their extra cash gains are more.