Cuts to Universally hated Social Charge on the way

Focus will be on taking lesser paid out of net | Coalition plan to lower taxes in Budget by €1.2bn

- JOHN KIERANS

THE Government is set to cut the much hated Universal Social Charge in this year's Budget.

It is understood Finance Minister Michael McGrath will focus on taking lower paid workers out of the USC net.

Employees currently start paying 0.5% USC on the first €12,012 they earn and then 2% up to 21,293.

They then pay a rate of 4.5% from €21,293 to €70,044 before moving to the top 8% rate to all earning over the €70,000 income threshold.

A Government source said the plan is to reduce the USC especially for those on the lower rates who can least afford it and are struggling to make ends meet.