Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe formally announced the details of Budget 2025 on Tuesday afternoon, which the government has promised will deliver a major boost for families.
Among the key take-aways, the Budget contains is a €12 per week increase for core social welfare recipients, with long-term welfare recipients to receive a double bonus payment, the first of which will occur this month. The Carer’s Support Grant is to increase to €2,000, while the Single Person Child Carer Credit will also rise by €150.
The minimum wage rate is to increase by 80c to €13.50. Major tax credits are all rising to €125, while the Universal Social Charge has been reduced by 1% for income between €25,000 and €75,000.
Parents will feel the benefit to the tune of a double child benefit payment in both November and December, Also included is a one-off €420 payment for parents of newborn babies, with an added €15 increase in new parents’ benefits. There will also be a €400 lump sum payment for those receiving the Working Family Payment.
As expected, two energy credits, worth €125 each, will be deducted from electricity bills with one coming before Christmas and one after.
The Help to Buy Scheme has been extended to 2029, with an extension of mortgage interest relief up to 2025.
The price of cigarettes has risen once again, with a standard box of 20 now set to cost approximately €18. Similarly, a domestic tax is planned for next year on the sale of e-cigarettes.
Carbon Tax, meanwhile, will increase by €7.50 per tonne of carbon dioxide emitted.
There was disappointment for the hospitality sector as the Government has resisted calls to lower the VAT rate from its current rate of 13.5%.
The majority of the announced implementations will take effect from January 2025, though some came into being as early as this week.