BUDGET 2025 WAS announced by the last government on 1 October last year, ahead of the general election the following month.

Hailed as a giveaway Budget, the package included a major cost-of-living package, with a value of €2.2 billion, and a number of tax cuts.

“I believe Budget 2025 puts in place the policies and measures to continue this positive trajectory and ensure that all our people see a promising and hopeful future in this country,” then-Finance Minister Jack Chambers said at the time.

While some measures kicked in straight away, and a number of one-off payments have already been made, many of the Budget 2025 changes come into effect today and later this year. 

Here are the main ones to know about that kick in today. 

Social welfare and cost-of-living supports

The Government announced a €2.6 billion social welfare package in October, hailing it as the largest in the history of the state. The package included a number of weekly increases and one-off payments.

From today, all weekly social welfare payments (including jobseekers benefit and allowance, illness benefit, disability allowance, and others) will increase by €12, with proportionate increases for qualified adults and people getting a reduced rate.

The Child Support Payment will also increase by €8 to €62 from today for those aged 12 and over, and and by €4 to €50 for under 12s from today.

There will be a €15 weekly increase for Maternity Benefit, Paternity Benefit, Adoptive Benefit and Parent’s Benefit from today.

A new Newborn Baby Grant of €280 will also be available for children born from today onwards, in addition to the first month of Child Benefit (€140).

Meanwhile, Carer’s Benefit will now be extended to self-employed people from this month. A reduced means test for Fuel Allowance will also be extended to people aged 66 and over (down from 70).

The Working Family Payment income thresholds for all family sizes will increase by €60 per week from this month.

Minimum wage and benefits

The minimum wage will increase today from €12.70 to €13.50 per hour.

As well as this, employees can get some vouchers or other non-cash benefits each year without paying tax on them. From today, there will be an increase in the maximum exemption, from €1,000 to €1,500. This can include up to five non-cash benefits per year (an increase from two benefits per year).

Income Tax

A number of tax changes also come into effect from today, including increases to tax bands and tax credits, and reductions in the rate of USC.

The 4% rate of Universal Social Charge (USC) will be reduced to 3%. The entry point for this rate will increase by €1,622, in line with the increase to the national minimum wage, so it will apply to income between €27,382 and €70,044.

Meanwhile, the standard rate income tax band (the amount you can earn before you start to pay the higher rate of tax) will be increased by €2,000 to €44,000 for a single person, with proportionate increases for married couples.

Personal, Employee, and Earned Income tax credits will all increase by €125 to €2,000. Other increases to tax credits include:

• Blind tax credit will increase by €300 to €1,950
• Dependent relative credit up by €60 to €305
• Home carer credit up by €150 to €1,950
• Incapacitated child credit up by €300 to €3,800
• Single person child carer credit up by €150 to €1,900
• The rent tax credit is increased for 2024 and 2025 by €250 to €1,000.

The entry point for this rate will increase by €1,622, in line with the increase to the national minimum wage, so it will apply to income between €27,382 and €70,044.

EVs and heat pumps

From today, the VAT charged for installing a heat pump in a property will be reduced from the standard rate at 23% to the 9% reduced rate.

A Benefit-in-Kind exemption will apply from 1 January 2025 to the provision of electric vehicle chargers at the home of a director or an employee of a company.

Measures to be introduced later this year

As well as today’s changes, a number of further measures will kick in as part of Budget 2025 later this year. These include:

• The Carer’s Allowance Income Disregard will increase to €625 for a single person and €1,250 for a couple from July 2025
• A €150 increase to €2,000 in the Carer’s Support Grant paid annually in June
• A Free Travel Scheme Companion Pass for all those aged over 70 from September 2025
• Hot School Meals scheme to be extended to all remaining Primary Schools in 2025
• The auto-enrolment retirement savings scheme will commence from 30 September 2025.
• The Jobseeker’s Pay-Related Benefit Scheme will commence from 31 March, aimed at ensuring that people with a strong work history receive a higher level of payment if they lose their job