Budget 2025 Summary

Some of the changes announced in the Budget come into effect immediately or before the end of 2024. Others take effect from the beginning of January 2025 or later in 2025. Many others have to be finalised before coming into effect. Some elements of these measures may change

Once-off payments

  • Once-off payment of €300 to people getting Fuel Allowance (November 2024)

  • Once-off payment of €400 to people getting the Working Family Payment (November 2024)

  • A double payment of Child Benefit for each child in November 2024. Another double payment of Child Benefit will be paid in December 2024.

  • A double week will be paid to people getting a long-term social welfare weekly payment in October 2024

  • Once-off payment of €100 to people who get an increase for a qualified child (November 2024)

  • Once-off payment of €200 to people getting the Living Alone Increase

  • Once-off payment of €400 to people getting Disability Allowance, Invalidity Pension and Blind Pension (November 2024)

  • Once-off payment of €400 to people getting the Carer’s Support Grant (November 2024) (If you get Disability Allowance, Invalidity Pension, Blind Pension or Carer's Support Grant, you'll get one payment of €400 even if you qualify for more than one of these payments.)

Social welfare weekly payments

  • The maximum weekly rate of Maternity Benefit, Adoptive Benefit, Paternity Benefit and Parent’s Benefit will increase by €15. All other weekly social welfare payments will increase by €12 with proportional increases for qualified adults and people on reduced rates of payment (January 2025).

  • The Increase for a Qualified Child (IQC) will be renamed the Child Support Payment. The weekly rate will increase by €4 from €46 to €50, for children under 12 years of age. It will increase by €8 from €54 to €62 for children aged 12 years and over (January 2025).

  • A once-off double week will be paid to people getting a qualifying social welfare payment in October 2024. Payments that qualify for the Christmas Bonus will qualify for the once-off double week.

Christmas Bonus

  • A Christmas Bonus of 100% will be paid in December 2024 to people getting a qualifying social welfare payment.

Carers

  • The Carer's Allowance income disregard will increase to €625 for a single person and €1,250 for a couple.

  • Carer’s Benefit will be extended to self-employed workers.

  • The Carer’s Support Grant will increase by €150 from €1,850 to €2,000 (June 2025).

  • Domiciliary Care Allowance will increase by €20 from €340 to €360 per month (January 2025).

  • Carer’s Allowance will be a qualifying payment for Fuel Allowance.

Free Travel Scheme

  • Universal companion pass for all people aged 70 and over.

Tax

  • 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.

  • The following tax credits will increase by €125 to €2,000 (Personal tax credit, Employee tax credit, Earned income tax credit)

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

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

Employment

  • The national minimum wage will increase by 80 cent to €13.50 per hour from 1 January 2025.

Education and training

  • The free schoolbooks scheme will be extended to Senior Cycle students from September 2025.

  • There will be no fees for Junior Cycle and Senior Cycle State examinations in 2025.

  • The Hot School Meal programme will be extended to all remaining primary schools in 2025.

  • The student contribution fee will be reduced by €1,000 for students in the 2024/2025 academic year.

Housing

  • The Help to Buy Scheme (HTB) has been extended to the end of 2029. It was due to end on 31 December 2025.

  • The Rent Tax Credit for people paying for private rented accommodation will be increased by €250 for 2024 and 2025. This brings it to €1,000 for an individual and €2,000 for a couple who are jointly assessed for tax.

  • The Mortgage Interest Tax Credit for 2023 has been extended for 2024. The credit for 2024 will be based on the increase in mortgage interest paid in 2024 compared with the interest paid in 2022.

  • Stamp duty for people who buy 10 or more residential houses or duplexes at a time, or cumulatively in a year, will increase from 10% to 15%. This will take immediate effect.

  • New stamp duty rate of 6% introduced for high value residential properties. This rate will apply if you buy a property valued at more than €1.5 million. This change will take immediate effect.

  • The tax relief for pre-letting expenses for landlords who bring vacant homes into the rental market has been extended to the end of 2027.

  • Vacant Homes Tax will increase from 5 to 7 times the property’s existing base Local Property Tax rate. The increase will take effect from the next chargeable period, commencing this November.

  • VAT charged for installing a heat pump will be reduced from the standard rate at 23% to the 9% reduced rate.

Energy and environment

  • All domestic electricity customers will get €250 off their electricity bills. The Electricity Account Credit will be paid in 2 instalments. The first payment will be made before the end of 2024, the second will be made in the new year.

  • The reduced 9% VAT rate for gas and electricity will be extended until 30 April 2025.

Transport

  • The 20% reduction in public transport fares will continue in 2025.

  • The 50% price reduction on the Young Adult Leap Card for people aged 19-25 and the 90-minute fare will continue in 2025.

  • Free public transport will be extended to children between 5 and 8 years of age.