Minister for Finance Paschal Donohoe confirmed an increase in the higher rate income tax band to €40,000 per year, up from €36,800.

This means that the standard rate cut-off point will rise by €3,200. The personal tax credit, earners’ tax credit and employee tax credit will all see an increase of €75, while the home carers tax credit will increase by €150.

The ceiling for the 2% rate of USC will rise by €1,625 from €21,295 to €22,920.

This will ensure that a full-time adult worker who benefits from the increase in minimum wage from €10.50 to €11.30 will remain outside the top rates of USC.

The minister announced a total of €2.5bn in cost of living supports. In once-off cost of living supports, a €600 electricity credit will be paid to households in three instalments of €200, with the first set to be paid in December.

In relation to allowances for fuel, recipients of the fuel allowance will receive a €400 lump sum before Christmas along with their weekly allowance envelope. Some 370,000 people are in receipt of the fuel allowance.

In November, carers will receive a €500 once-off payment and those in receipt of living-alone allowance will be paid €200 in the same month. There are a total of 350,000 in receipt of the carers allowance, while a total of 230,000 people are in receipt of the living alone payment.

Parents are also set to receive a double-month child welfare payment in November.