Ireland’s Political System Abuzz Ahead of Budget 2025, Set to Unveil €105.4 Billion in Spending
Dublin: The 2025 Budget, to be delivered by Finance Minister Jack Chambers, will allocate €105.4 billion, a €6.9 billion increase from last year. Key priorities include a pro-business agenda and a cost-of-living package, though smaller than previous years due to reduced inflation. Expected measures include energy payments and a double child benefit payment before Christmas.
Workers: A significant income tax and USC reduction will make workers around €1,000 better off. The USC rate is likely to be cut by 0.5%, and the income tax band for the higher rate is expected to rise.
Social Welfare: Pensioners, carers, and people with disabilities may see an increase in payments, possibly up to €20 per week, though €12 is more likely.
Fuel Allowance: The eligibility for this allowance may be expanded to include retirees aged 66 and above.
Business: A reduction in the USC surcharge for the self-employed is possible, though cuts to VAT for the hospitality sector seem unlikely.
Children: The childcare budget will rise, but no further reductions in costs are expected. Child Benefit may increase by €10, and a double payment is expected before Christmas. A one-off “baby boost” payment is under consideration.
Students: The student contribution fee could be cut by €500 permanently. There may also be changes to the SUSI grant thresholds and student housing support.
Housing: The Help to Buy scheme is likely to be extended, with higher price caps. Renters could see their tax credit increase from €750 to €1,000.
Transport: Free public transport may be extended to children under nine.
Health: Free contraception could be extended to 16-year-olds.
Tobacco and Vapes: Cigarettes and vapes are likely to see price increases, with cigarettes expected to surpass €17 per pack.
Inheritance Tax: The tax-free threshold may rise from €335,000 to €400,000.
Infrastructure: Significant investments in housing, water, and energy services will be funded by the sale of government AIB shares.
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