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Budget 2025: Here’s what we know so far
1st October 2024
The Budget for 2025 will be announced this afternoon. Coalition leaders met yesterday evening to finalise the details. Here’s what we know will be included so far.
- The point at which people pay the higher rate of tax of 40% is expected to increase from €42,000 to €44,000. This will be largely to take account of rising wages. The increase would be similar to last year’s €2,000 rise. The latest figures from the Central Statistics Office show wages are rising at 5% per annum.
- The 4% rate of Universal Social Charge is likely to be cut from 4% to 3% on incomes €25,000 to €70,000. Last year USC was cut by 0.5%. This has been a priority for Fianna Fáil.
- The minimum wage is expected to rise by 80 cents per hour to €13.50. This is less than the €1 which was recommended by the Low Pay Commission.
- The point at which people pay inheritance tax or capital acquisitions tax of 33% is expected to increase by €65,000 to €400,000. That category is for children who inherit. But there will also be a pro-rata increase in the threshold for other beneficiaries including brothers, sisters, nieces and nephews. The change in the threshold is to take account of rising house prices which are now above the peak they reached in the boom in 2007.
- The renters tax credit will rise from its current rate of €750 to €1,000 for 2024 and 2025. Tenants apply for these benefits through the Revenue Commissioners website.
- The Help to Buy scheme which was to conclude at the end of 2025 is expected to be continued until 2029. The programme allows first time buyers who are purchasing a new home to claim up to €30,000 back from the Revenue Commissioners in income tax they have paid over the past four years so they can use it towards a deposit. Critics have argued it could increase house prices while the Government maintains it stimulates supply of new homes. Fianna Fáil is expected to claim credit for extending the scheme.
- Coalition leaders have agreed a €2.7bn social protection package for Budget 2025, described as the largest in history of State. It’s understood that social welfare core rates will increase by €12 per week across the board.
- It is expected there will be two double child benefit payments before Christmas. Child benefit is paid at €140 for one child, €280 for two and €420 for three. Minister for Social Protection Heather Humphreys says she favours double payments over an increase in the basic rate of child benefit.
- A Green Party proposal for an additional payment for each newborn child has been passed by the Coalition leaders tonight in Budget 2025. What is termed the ‘baby boost’ payment will now mean a special one-off payment of €420 paid out following the birth of a baby (the existing €140 and an additional €280). The new payment will kick in from 1 January on a permanent basis. The Green Party leader and Minister for Children Roderic O’Gorman had prioritised this payment, arguing parents also face significant expenses, even though he has overseen an average cut of 50% in childcare fees over the last two years.
- Social Protection Minister Heather Humphreys had wanted a €15 euro increase and pensions and carers to be prioritised over jobseekers. It’s understood additional funding will be provided to her department to cover the increase in jobseekers payments. Also included in the package tonight is the expansion of the fuel allowance for people over 66, an increase in the Carer’s Support Grant to €2,000, Carer’s Benefit for the self-employed, a €200 Living Alone lump sum and a range of cost-of-living payments for carers and pensioners between now and Christmas.
- It is expected free public transport will be extended to children under nine years old. At present it is for those up to the age of five. This has been a priority for the Green Party.
- There will be two energy credits each of €125 for this year. Prices have eased recently. But it is worth bearing in mind there will be a levy on electricity users to pay for an upgrade to the network. The levy will be €3.23 per week or €38.76 per annum from 1 October. The payment is set by the Commission for Regulation of Utilities and had been at zero for 2023 and 2024 due to high energy prices.
Article Source – Budget 2025: Here’s what we know so far – RTE
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