Fine Gael members to call for €15 pension increase, mortgage relief and hike in renters’ credit

Fine Gael politicians are to call for a €15 increase in the State pension, a €500 hike in the rent credit and the reintroduction of mortgage-interest relief as part of Budget 2024.

The parliamentary party will meet on Wednesday evening, when Taoiseach Leo Varadkar will come under pressure to make widespread budgetary changes in October.

The meeting will also hear calls to increase, over the next two budgets, the level at which people hit the higher rate of income tax to €50,000.

Fine Gael TD Alan Dillon said he wanted to see the State pension boosted by €15 “to ensure our older generation is taken care of”, while he is also calling for an increase to the entry point at the higher rate of tax.

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He is also calling for further cuts in childcare costs as well as an increase in the rent relief to €1,000 per renter. As part of the last budget, a rent tax credit was introduced worth €500 per individual or €1,000 per jointly assessed couple.

Party Senator Regina Doherty said that increasing the entry point for the higher rate of tax to €50,000 should be achieved “in the next two budgets”. She said “significant movement” was required on this.

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Ms Doherty signalled her desire to see a new 30 per cent tax rate introduced but said it was currently the subject of consultation. She said, however, “that we should be shouting from rooftops for its establishment”.

“The continued energy grants of €200 every two months were impactful last winter: bills are still high and until base rates reduce, the Government should continue with the €200 payment for this winter,” she said, referring to the emergency support given during the energy crisis.

She is also calling for an investment programme in community creches, as well as “serious investment” in solar projects in all school and public buildings, as well as financial support for parents who get private assessments for children with special needs.

A number of Fine Gael TDs said privately that they would be demanding a reintroduction of mortgage interest relief. The relief was phased out between 2009 and 2020. One TD said families were being “crucified” by rising interest rates.

Fine Gael TD Michael Ring said he also wanted to see the reintroduction of mortgage assistance.

“I want to see the squeezed middle rewarded. They should be rewarded for their work. Fine Gael needs to be pushing for that,” he said.

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He suggested mortgage interest relief, further relief on the entry point for the higher level of tax and also the universal social charge should be reviewed over the coming years.

Fine Gael Minister of State for Overseas Development Aid Colm Brophy called for a tax break for the purchase of iPads or laptops for third-level students and the parents of second-level students.

The Government will also next week come under pressure from Siptu, Age Action and other groups to put the State contributory pension at no less than 34 per cent of average earnings. The current weekly rate of State pension is €265.30, which the groups will say is €53 per week short of the benchmarking target.

Mr Dillon has also said he wants to see an increased allocation of Deis status for rural schools to support school communities with refugee and international protection applicant children, as well as further discounted travel rates for students.