There should be something for everybody in this year's Budget, writes Laura Slattery

When Minister for Finance Brian Cowen takes a sip of water, clears his throat and addresses a full Dáil next Wednesday, the words that emerge will more or less affect the net income, spending power and life decisions of everyone in the State.

The case studies on these pages, written and compiled by PricewaterhouseCoopers on behalf of The Irish Times, outline some of the tax and social welfare changes that six hypothetical families and one single worker will be hoping for when Mr Cowen makes his Budget-day speech.

This year, parents with small children are expected to be the ones who will benefit most from what the Minister has to say.

Working parents, and parents who want to work but are hampered by steep creche costs, will be listening carefully to the Minister as he unveils a long-awaited new childcare package, reported to be worth close to €1 billion.

The Budget-day announcements could include a new tax credit for childcare fees, increased and longer paid maternity leave, or perhaps some benefit toward preschool education. Measures increasing the supply of available childcare, such as tax breaks for childminders and tax incentives for additional creche places, may also be on the cards.

Geraldine in our dual income couple is job-sharing, earning €22,000. As creche fees for the couple's two young children amount to €1,000 a month, the family would not be too much worse off financially if she were to give up her job. But tax relief for childcare expenses would mean she could continue jobsharing and the family could benefit from a second income.

Meanwhile, Joan from our single-income couple, who currently cares for the couple's children on a full-time basis, is also hoping for some tax incentive that would facilitate her return to the paid workforce.

The Government is thought to be anxious that stay-at-home parents - those who want to stay at home - won't feel left out, so the new childcare package is likely to be counterbalanced by measures benefiting single-income families, such as the universal child benefit increases or an increase in the standard-rate tax band for single-income couples.

Some €45 million has been earmarked for increases in child benefit payments.

Higher rates of child benefit for children under five have been suggested as a way to ease the pressure on parents during the preschool years. At the moment, €141.60 is paid every month for the first and second child, with €177.30 paid for the third and subsequent children.

However, a working parent tax credit would ensure that parents of older children who still have childcare expenses would also benefit from the Budget. The effect of any announcement may not be felt in parents' pockets immediately, however, as the measures could be introduced on a phased basis over years.

The Government is expected to widen the tax bands for all workers in the Budget as part of a move to have them index-linked to inflation. This means that workers will be able to earn more before they become liable to the higher 42 per cent rate of tax.

Currently, a single worker is taxed at the 20 per cent standard tax rate on the first €29,400 of their income, while the working partner in a single-income couple can earn €9,000 more at the standard rate, as the 42 per cent tax rate does not kick in until their salary exceeds €38,400.

However, to be able to benefit from this higher standard-rate tax band the single-income couple must be married. For this reason, and because they are also ineligible for the home carer's tax credit, the single-income cohabiting couple, Patrick and Fiona, have a higher tax bill than their married counterparts.

Workers are also looking for increases in tax credits like the personal tax credit, which currently subtracts €1,580 off a single person's tax bill, and the PAYE credit, now worth €1,270.

Rises in these credits can result in the removal of people on low incomes from the tax net.

Mr Cowen's Budget is also expected to include measures that will benefit the elderly, such as an increase in the fuel allowance and the carer's allowance.

Some €60 million has been set aside for old age pensions, which will give hope to our sample pensioners, Bobby and Mary.

Various financial institutions, industry lobby groups and consumer representatives have implored the Minister to introduce some incentive for long-term saving once the Special Savings Incentive Account (SSIA) scheme draws to a close in May.