More funds for hospital beds and 50 cent cut to prescription charges expected in budget

Independent Alliance expected to secure full restoration of social welfare Christmas bonus

The Department of Health is expected to receive funding of over €16 billion for 2019 in Tuesday's Budget, a significant increase on the allocation for 2018.

This is expected to include increased funding for hospital beds and a 50 cent cut to prescription charges. The threshold for the drugs payment scheme will also drop by €10 per month. Further funding is expected for the National Treatment Purchase Fund.

Billions of euro of capital spending in health – over €6 billion over the next few years – is likely to be brought forward under the Slaintecare banner.

Welfare payments are set to increase by €5, although the increases will not kick in until March, as has been the case in recent years.

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Changes to the one-parent family payment made by the last government, which cut the amount paid to many lone parents, will be reversed.

The Independent Alliance secured the full restoration of the social welfare Christmas bonus, meaning a double payment will be made to welfare recipients. Proposals to help older people who want to convert their homes into sub-units are still under consideration.

However, tensions have developed between the Independent Alliance and the Government during the budget process, with some tension also reported within the Alliance itself.

Fianna Fáil, whose acquiescence is needed to pass the budget, on Friday launched its pre-budget update of the confidence and supply deal.

Fianna Fáil finance spokesman Michael McGrath said it was looking for a “major, multi-annual, capital commitment to an affordable housing scheme”.

“It will need to be very significant and to be backed-up with delivery. The dream of owning your own home is a legitimate one, and for young people and couples it is getting further and further beyond their reach.”

Adult homelessness

Barry Cowen, the party’s public expenditure spokesman, said that since 2014 adult homelessness had increased by 66 per cent, family homelessness had increased by 129 per cent, and child homelessness had increased by 139 per cent.

"As always, Fine Gael is more focussed on spin than on delivery. It is clear from responses to parliamentary questions that the Government has no oversight into how capital funds are invested across each department."

Under its plan Fianna Fáil would specifically enable the Comptroller and Auditor General to oversee the delivery of capital investment across the board.

Mr Cowen said the design of the affordable housing scheme would be change and delivery accelerated. “We want to substantially increase the level of funding that is being geared towards affordable homes, and we also want to devise a methodology to allow people to access those homes that will involve changes to eligibility and criteria.

“There are other issues in relation to the deliverability of those homes in relation to the logjams that are there at the moment – there has to be a huge shift in emphasis and on attitude for how it is done.”

Mr McGrath also said policies were needed to reward smaller landlords who entered long term leases of between 10 and 20 years with tenants.

He said there had been “a drift away from this sector by domestic landlords who might own one, two three properties” to institutional investors.