What Ireland’s Budget 2025 Means for Your Wallet and Daily Expenses?
The government is gearing up for a major announcement with Ireland’s Budget 2025, aimed at appeasing various voter groups ahead of the next general election. This year’s Budget is expected to be one of the biggest giveaway packages since the Celtic Tiger era. A number of one-time payments, tax cuts, and welfare increases are some of the major areas that stand to gain.
(Also read Budget 2025: Government to Raise Standard Rate Tax Cut-Off Point by €2,000.)
Big Gains for the Over-70s with Ireland’s Budget 2025
An increase of €12 in the state pension is one notable modification. Additionally, the over-70s are in for a treat with a new “bring a friend” expansion of the free travel scheme, designed to support older adults. Under this scheme, people over 70 can bring a companion on public transport, making it easier for them to travel with family or friends.
Parents to Benefit Under Ireland’s Budget 2025
Parents, too, are set to benefit from new cost-of-living measures. A special one-off “baby boost” of €420 will be provided to parents of newborns starting from January 1st. Moreover, maternity, paternity, and parents’ benefits are set to increase by €15 weekly, raising the overall benefit to €289 per week.
Double Payments and Bonuses
Additional support for families will come through double payments of Child Benefit in both November and December. This is in addition to double payments of all welfare rates in October and December, ensuring extra support for those in need during the winter months. The welfare package doesn’t end there. The working family payment will get a lump sum payment of €400, and other weekly social assistance benefits such as Jobseeker’s Allowance, Disability Benefits, and Carer’s Allowance will increase by €12.
Universal Companion Pass to Tackle Loneliness
For elderly citizens, Heather Humphreys has introduced the Universal Companion Pass as part of Ireland’s Budget 2025. Anyone over 70 can now bring a partner, loved one, or friend on public transportation for free, unlike the previous plan when candidates had to pass a medical assessment. This initiative aims to reduce loneliness and encourage older citizens to socialise more frequently. As a spokesperson noted, it will help older adults attend medical appointments, go shopping, or simply enjoy a trip with a companion, without worrying about transportation costs.
Fuel Allowance Boost for Over-66s
Another significant change is the Fuel Allowance extension to cover over-66s. A €300 lump-sum payment will also be provided as part of Ireland’s Budget 2025 cost-of-living package, helping older adults meet their heating expenses during the colder months.
Cigarette Prices Set to Rise Again
However, not all sectors will see leniency. Cigarette prices are set to increase by €1 per pack, doubling last year’s 50-cent hike. This measure is being implemented for health reasons, with similar price increases expected across other tobacco products.
Energy Credits and Tax Reforms
Later this year, two energy credits, each worth €125, will be subtracted from electricity bills in an effort to reduce energy expenses. These credits will be applied automatically, providing some relief to households grappling with rising energy prices. Tax reforms are another area of focus for the government. From €42,000 to €44,000, the threshold for paying the higher 40% income tax rate will increase. This change, coupled with a reduction in the Universal Social Charge (USC) from 4% to 3% for incomes between €25,000 and €70,000, means workers could see annual savings of up to €1,000.
Tax Credits to Ease Financial Burden
The single-person tax credit will increase by €100, bringing it to €1,975, while the married or civil partners’ rate will rise to €3,850. The earned income tax credit and the employee tax credit will also rise by the same amount, easing the financial load on employees even further.
Free Hormone Replacement Therapy for Women
Women will benefit from the rollout of free hormone replacement therapy (HRT), saving them between €360 and €840 annually. This follows extensive campaigning and will ease the financial pressure on women seeking relief from menopause symptoms.
Housing Measures to Curb Vulture Funds
In housing, the government is taking steps to curb bulk-buying by vulture funds. Stamp duty on bulk-buying of homes will be increased to 15%, making it harder for large investors to push out first-time buyers. Additionally, the Help-to-Buy scheme is likely to be extended until the end of the decade, offering stability to both developers and prospective homeowners.
Support for Carers
For carers, Ireland’s Budget 2025 will bring several benefits. The income threshold for the Carer’s Allowance will be increased to €625 per week for single people and €1,250 for couples. Carers will also receive a €400 lump sum, and the Carer’s Support Grant will rise to €2,000. Furthermore, there will be a €20 increase in the Domiciliary Care Allowance, offering extra support to families caring for children with disabilities.
Boost for Students
Students are not left out. All student subsidies will see a 15% boost, according government announcement, beginning in September 2025. The special rate of maintenance threshold will also rise from €26,200 to €27,400, aligning with social welfare increases. The goal of this change is to give students who are having difficulty keeping up with the rising expense of living better help.
Rapid Processing of Asylum Requests
Helen McEntee, the minister of justice, has obtained funds to hire almost 400 additional employees for the International Protection Office. The aim is to speed up the processing of asylum applications, which reached over 23,000 in August, and to tackle the growing number of appeals.
Support for the Arts and Culture Sector
The Arts Council is set to receive €140 million in funding, targeted at supporting artists, venues, and production companies. This investment will be channelled into initiatives for young people and children, while also extending the Basic Income for Artists scheme until the end of 2025. The original plan was for the Basic Income for Artists program, which pays 2,000 artists €325 per week, to expire in August of next year. However, with an additional €35 million earmarked, the program will continue for another year, supporting creative professionals through challenging economic times.
Boost for Tourism
Tourism supports are also on the agenda. New initiatives will be launched to attract visitors to regions struggling with low tourism numbers. Halloween-themed events in Cork, Galway, Waterford, and Killarney are planned to boost tourism during off-peak seasons. In total, a tourism marketing budget of €61 million will be allocated, and Fáilte Ireland will receive €36 million for expanding product development.
Increased Funding for Sports
The sports sector will see a 10% funding increase, bringing the total allocation to over €230 million. Government is already planning ahead of Ireland’s budget 2025. The funding will be directed towards enhancing Sport Ireland’s programs and supporting the Football Association of Ireland’s inclusion initiatives.
A Comprehensive Strategy
Overall, the government’s Ireland’s Budget 2024 package is a blend of tax cuts, welfare increases, and targeted payments, aimed at easing the financial pressures on households. It’s a clear strategy to win over key voter groups, setting the stage for a general election campaign. The extensive nature of Ireland’s Budget 2025, which spans multiple sectors, reflects a commitment to addressing the concerns of a diverse electorate. As the government rolls out these measures, the focus will be on implementing them effectively and ensuring that they reach those most in need. The question now is whether this massive giveaway will translate into the political support the government seeks.
