Finance Minister Jack Chambers has told Dáil Éireann that measures included in Budget 2025 will help ensure “that the children born today in Ireland can live prosperous and fulfilled lives” as the unveiling of the highly anticipated Budget gets underway.
Budget 2025 is being presented to Dáil Éireann this afternoon, with Minister Chambers speaking at 1pm, followed by Minister Donohoe at 1.45pm.
“We need to give hope to young people and to their parents and grandparents that the decisions made today will allow them to live a full life in Ireland” the Finance Minister told the House, as he referred to challenges in housing and affordability.
In an announcement that had not been anticipated, the major tax credits (personal/PAYE/earned income) will all rise to €125 each. This will mean that minimum wage workers will gain €1,424, whilst someone on the national average salary could end up €1,000 better off.
“Careful and prudent management of the State’s resources” would be key, the Minister said, in delivering for citizens, pointing to challenges in housing, energy, water, transport and infrastructure.
A cost of living package worth €2.2 billion has been included in the Budget, with full details to be revealed soon. This, the Minister said, has been designed to support the most vulnerable and ease the burden on people over the winter months.
Rent tax credit has been increased by €250. In addition, the credit for 2024 has been increased to €1,000 per person.
The 9 per cent reduced VAT rate for gas and electricity has extended for a further six months.
€1.25 billion has been designated to the Land and Development Agency in order to “accelerate” the supply of housing and develop “thousands of more social and affordable homes.”
€3 billion will go towards infrastructure spending, with the Minister referring not only to the “substantial need for housing, but also in water and energy infrastructure.”
Minister Chambers went on to announce that a pack of 20 cigarettes will cost an additional €1 per pack from midnight – meaning the cost rises to €18 per pack. In addition, tax on vapes will be levied at 50 cent per ml, however this increase will not take effect until next summer.
1:45pm: Minister Paschal Donohoe outlines Budget allocations:
Minister for Public Expenditure Paschal Donohoe, during his address this afternoon, confirmed that the government is introducing a “newborn payment” of a once-off triple child benefit payment of €420 per newborn child.
Minister Donohoe also announced the Budget’s inclusion of plans for 1,500 additional special needs assistants in Irish schools, and 350 more special classes.
In what had not been anticipated ahead of this afternoon, it was announced that long-term welfare recipients are set to receive a double payment this October as well as the Christmas bonus.
In addition, Minister Donohoe announced:
Tax credit increases: €125 personal tax credit, €150 home carer tax credit, €150 single person child carer tax credit, €300 incapacitated child tax credit, €300 blind person’s tax credit
Free public transport for children under nine years old from next summer
New universal companion pass for people aged 70 and over to bring a friend on public transport
Free school books up too Leaving Cert
Other confirmed measures in the Budget include: