BILL and Jackie are a couple in their forties and have three children, all under 18. Bill works as a factory supervisor earning £17,845 a year.
He bought his house six years ago and his mortgage is now £20,000. The benefits of the increased PRSI allowances have been offset by the fact that he no longer qualifies for full mortgage interest relief as this only applies for the first five years. The maximum allowance they can claim is now restricted to 80 per cent of the interest which they pay and a further £200 is then deducted.
However, the couple's net income after income taxes and deductions has increased from £14,715 to £14,869, an increase of £154 a year.
Their child benefit payments have gone up by £2 per child, from £27 to £29 per month for the first two children and £32 to £34 per month for the third child.
Jackie is considering going back work part time in a clothing factory as the increases in the weekly PRSI threshold from £50 to £80 make this a more attractive proposition.
Both Bill and Jackie drink moderately and are pleased that there were no further increases in tax on alcoholic drinks.