Budget 2023 is to be announced in September as the Government aims to introduce measures to tackle the cost of living crisis.
Among these new measures under consideration is a double child allowance payment for December, an energy credit, a boost to social welfare payments and the introduction of a new tax bracket.
Up to €1 billion is expected to be allocated as part of the Government's "Cost of Living Budget", which is separate from the €6.7 billion already allocated to Budget 2023.
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While the amount to be given in the once-off measures has not been decided, the subsidies are expected to kick in this year to provide immediate relief to struggling families.
Here is a closer look at what to expect in this year's Budget.
Tax bracket
A change to the current tax brackets is also on the cards in next month's Budget.
Over one million taxpayers could pocket an extra €1,000 a year if a decision is made to introduce a third tax band for middle-income earners.
There are currently two rates of tax in Ireland, one at 20 per cent and a higher rate of 40 per cent for earnings over €36,800.
Two options are under consideration, including income tax at 30 per cent for earnings between €36,800-€41,800, which would cost the Exchequer €525 million a year.
This would see individuals and married couples with one earner take home an extra €500 a year.
The second option is to set the 30 per cent tax rate on incomes between €36,800 to €46,800, which would cost €945 million.
Individuals and married one-earner couples would take home an extra €1,000 a year under this band.
Minister for Finance Paschal Donohoe confirmed: "We want them(workers) to keep as much as they're earning."
Social welfare
The Government are to consider a potential €15 hike in pension and welfare payments.
This comes as one of the biggest reductions in income tax in almost a decade is to be introduced in this year's Budget .
Finance Minister Paschal Donohoe published the Tax Strategy Group papers on Thursday, which stated plans to be examined by the Government during the last month of budget negotiations.
The measures are aimed at putting cash back in people's pockets as the cost of living crisis continues.
Among the recommendations is a €15 increase across the board on social welfare payments and introducing a new tax band that could save one million workers up to €1,000 a year.
All of the social welfare packages outlined in the Tax Strategy Group papers include a double-digit increase in weekly payments ranging from €10 to €15.
The first of which recommends a €15 increase across all payments , which would cost the State around €1.1 billion.
This would mean the majority of people receiving social welfare payments would receive €223 per week, while a person on the State pension would see their pay packet increase to €268 per week.
Another option under consideration is a €10 increase in all welfare payments along with a €10 hike in the Fuel Allowance and Living Alone allowance.
Child Benefit
The Government is also to consider a once-off double payment of the monthly €140 child benefit sum as part of a cost-of-living package to be announced on Budget day.
Those in receipt of a child benefit payments could be in line for a €280 one-off payment if they have one child or €560 if they have two.
If the Government agrees to the policy, parents will receive a huge boost, with a family with three children eligible to receive €840.
A family with twins would also get €840 as they receive one-and-a-half times the normal rate per child.
Under plans under consideration by Finance Minister Paschal Donohoe , Public Expenditure Minister Michael McGrath and Social Protection Minister Heather Humphreys, the payment would be made before Christmas.
The package will be announced as part of Budget 2023 on September 27, with the agreed spending policies expected to come into effect before the end of the year.
The move comes as Top of Form Fine Gael and Fianna Fáil attempt to introduce policies that will alleviate the financial strain on middle-income earners caused by rising inflation.
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