Welcome to Budget 2025 where numerous giveaways are anticipated which could increase many households’ earnings by a substantial amount in the next year. This budget appears to be the government’s attempt at scoring a platform for voting from today’s budget.
Our sources have indicated that Jack Chambers, the youngest Finance Minister in over a hundred years, is slated to present his debut budget, with the politics of Fianna Fáil dependent on his success for the upcoming election.
Many are analysing if you’ll end up with increased funds after today’s budget announcement, and our Deputy Business Editor Dominic Coyle and Beryl Power from PwC are set to carry your queries into our live blog discussion post-budget tomorrow.
We anticipate widespread changes in the tax regime, which are projected to make employees with average wages approximately €1,000 wealthier. Other announcements include one-off payments in the forthcoming months, such as €250 in energy credits, and two double payments of child benefits, providing an extra €840 for families with three children. These will commence when the budget presentation starts today at 1pm.
In what may very well be the largest budget giveaway ever to households, a variety of additional spending plans have been outlined. These plans have been strategically timed as the next election is anticipated to take place in November, with March of next year being the latest.
A substantial surplus is set to be projected by the Government, led by the inflow from corporation tax receipts. Money will also be transferred into savings funds.
The proceeds from bank shares will be re-invested into water, housing, and energy, with additional billions laid aside. The surplus from the National Training Fund stands ready for investment in higher education.
Furthermore, the government is expected to announce that some proceeds from the Apple tax case will be used for investment in four sectors – water, electricity, transportation, and housing. Stay tuned throughout the day for all updates related to the Budget 2025 and check out our dedicated site for comprehensive coverage.
The Green Party celebrated last night after successfully ensuring thrice the child benefit payments, also known as the “baby boost”. Over the forthcoming months, ten separate, one-time payments are in the pipeline. These comprise two twofold welfare payments in October and December, two double child benefit payments, and multiple grants including £400 for both disability and carer’s support, £300 for fuel allowance, £200 for living alone allowance, £400 for working family payment, and £100 for child support grant (previously identified as qualified child payment).
However, efforts to get a VAT reduction for hospitability services were unsuccessful, leading to disappointment amongst some. The Increased Cost of Business payment is likely to be extended though.
As the budget package was being finalised on Monday night by the Coalition party leaders and two budget ministers, it was expected to be presented in the Dáil on Tuesday afternoon.
The welfare increases will cover a £15 rise for maternity and paternity reimbursements. Carers will be benefitting from a package that includes increased allowance up to £625 per week for an individual and £1,250 for a couple after passing the Carer’s Allowance means test. The Carer’s Support Grant will be hiked to £2,000 from £1,850 and will be also available to self-employed workers.
Weekly welfare payments will have an overall boost of £12 while the Domiciliary Care Allowance will observe a £20 increase. Student grants are gearing up for a 15% enhancement.
Previously, the Qualified Child Payment will be revised to Child Support Payment. The weekly payments for children below 12 years will rise by £4 to reach £50 and for children above 12 years it will increase by £8 to £62.
The health budget will reportedly have free hormone replace therapy (HRT) for menopausal women, leading to annual savings between £360 and £840. With an additional £30 million funding, the health budget is the largest it has ever been.
Despite the sizable resources available to the government, the path to the budget has been bumpy with significant disagreements between the three Coalition parties, each attempting to gain political advantage. The leader of Fianna Fáil, Micheál Martin, expressed his disapproval towards rumours suggesting that Fine Gael had been aiming for a £15 per week pension enhancement while proposing minimal uplifts for unemployment benefits.
Mr Martin clarified that no formal request was made by Fine Gael, dismissing any contrary insinuations as overblown and mere spin. You might be interested in how we can accurately anticipate the contents of this year’s budget, and whether it has always been this way. We can assure you it wasn’t always so transparent.
The annual budget used to be a closely guarded secret in Irish and global politics. Hugh Dalton, the British Chancellor of the Exchequer during the late 1940s, had to step down after casually revealing his budget plans to a journalist. This comment found its way into evening newspapers just moments before he made his speech at the House of Commons. Imagine what would happen if such a rule were in place today – no minister would remain in Dáil Éireann.
In Ireland, for a very long time, the budgetary plans of the finance minister were held secret, as in-depth as the Third Secret of Fatima. Leaks could lead to dismissal. Then came a shift when Fianna Fáil began subtly unveiling key elements of the budget to evening papers on the day it was publicised. Gradually, this transformed into a free-for-all, with nearly every detail of the budget now announced ahead of time.
Presently, we are well aware of almost all the budget plans, courtesy of our diligent political reporters who have been tenaciously investigating and a new trend amongst politicians to spill the beans early on. Here’s a sneak peek into some anticipated announcements:
– Twice before Christmas, €280 per child will be paid as double child benefit.
– The Universal Social Charge will be lowered, while the maximum income tax threshold will be increased by €2,000, with an increase set in tax credits.
– All welfare benefits, including pensions, to rise by €12 weekly.
– A universal electricity credit expected in two parts, equal to €250.
– A €250 increase anticipated in tax credits for tenants.
– In this academic year, student fees are expected to decrease by up to €1,500.
– Additional allowances for people living alone, and lump sums for long-term disable individuals, will also be introduced.
Commencing next summer, public transportation will not charge children below nine years of age. A solitary payment, triple the usual child benefit size, is to be provided to parents with newborns. The impending extension of relief on mortgage interest is also anticipated. Textbooks for schooling up until the final year of Leaving Cert will be gratuitous. Moreover, an extra 1,500 professionals to aid children with special needs will be hired and 350 additional specialised classes will be introduced. Fees for the Junior and Leaving Cert examinations will also be abolished.