,</p><p>

The Irish government is expected to announce measures to help with energy and childcare costs when it delivers its budget later.

The threshold at which people start paying the higher income tax rate is also expected to increase from its current level of €44,000 (£37,000).

Much of that additional spending is 'standstill' funding to cover the rising costs of current services.

Ireland is in a stronger fiscal position than most European countries as an ongoing corporation tax windfall means it is collecting more in taxes than it is spending on services. Figures released last week showed the country is expected to run a surplus of €6. 9bn (£5. 84bn) this year, lower than the €9. 2bn (£7. 79bn) forecast in April.

The introduction of fuel supports and additional spending to cover budget overspends, particularly in health, will help reduce the deficit by €1. 4bn (£1. 12bn). Some of the surplus is being invested in national wealth funds to help with future spending commitments.

A spending watchdog, the Irish Fiscal Advisory Council, has criticised the government for not saving more.

Other measures expected to be announced on Tuesday are a new tax-free savings scheme, similar to the UK ISA.

A proposal for a 'culture card' for teenagers, to spend on events like concerts, is also set to be announced though the value and eligibility are unclear.

Irish government to divert billions of extra euros to savings funds