Budget 2025: Full list of measures expected from social welfare to energy credits and tax cuts

Budget 2025 is less than a week away and is expected to provide some much-needed supports for the cost of living crisis. Here's everything you need to know about measures set to be included - from energy credits and fuel allowance adjustments to social welfare increases and tax cuts.

Budget 2025 is fast approaching with the public looking forward to a package of supports aimed at cushioning the cost of living crisis. Most households are expected to benefit from measures on the likes of energy credits and social welfare lump sums.

Ministers are continuing to deliberate on exact plans ahead of Budget 2025, which will officially be announced next Tuesday, October 1.

During the summer, the Government proposed a Budget package of €8.3 billion, which means they are set to allocate that towards additional spending or cuts in taxes in Budget 2025. It's expected that €6.9 billion of that will be used for spending increases on things like on public services, while around €1.4 billion will be allocated to tax changes.

And with mounting speculation that Taoiseach Simon Harris will call an early general election, it is expected that any cost of living measures announced next week will be implemented as soon as possible.

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Here's everything we know so far about the changes expected for energy credits, social welfare, pensions, child benefit and more...

Energy credits

The Government is mulling over including energy credits of up to €250 in the Budget, although the final decision on the amount is yet to be made, Dublin Live reports.

Tanaiste Micheal Martin, speaking on RTE's Morning Ireland, couldn't confirm whether one or two credits will be included in the Budget but stated that they will be paid this year.

Fuel Allowance

The Fuel Allowance is distributed from September to April each year. It's either paid in 28 weekly instalments of €33 or two lump sum payments of €462.

Discussions are reportedly underway within the Government about lowering the age entitlement for the Fuel Allowance in Budget 2025, potentially making more people eligible. Currently only individuals over the age of 70 and those receiving long-term welfare payments qualify for the payment.

Reports suggest that Minister for Social Protection Heather Humphreys is considering reducing the age limit to 66 as part of Budget 2025 negotiations.

Social welfare and pensions

Social welfare recipients are set for a cash injection immediately after the Budget, with senior Government sources suggesting to the Irish Examiner that these bonus payments are slated for an October rollout. The much-anticipated Christmas bonus is also tipped to make a comeback this year.

Minister Humphreys is reportedly pushing for a €15 weekly boost to the State Pension, however it is not expected that Jobseekers will see the same increase as the country is near full employment.

Child benefit

Parents have something to cheer about as the double child benefit payment is expected to be dished out again this year, with December earmarked for the payout.

And there's more good news on the horizon for families, as there are suggestions of a €10 monthly bump to the child benefit scheme. If confirmed, this would mark a significant uptick from the long-standing €140 per child per month rate.

Tax

On the tax front, the Taoiseach has teased a "significant income tax and USC reduction package" in Budget 2025. Earlier this month, he outlined his vision for a "pro business package" in the next Budget, promising "changes to the tax system to encourage innovation and investment".

Cuts to USC and income tax could also on the way. the Taoiseach revealed: "As part of a €1.4 billion tax package, the Budget will also contain a significant income tax and USC reduction package, which will benefit workers and households, and help to keep our tax system competitive."

What's not clear yet is how much the rates of USC will be tweaked. Last year's Budget cut the 4.5% rate down to 4%. Raising tax bands seems like a done deal too. Currently, after a tax credit a single person pays 20% tax on income up to €42,000 and 40% on everything they earn above that.

Rent

Renters can expect a bit more relief with the Rent Tax Credit set to jump by €250 to €1,000.

You can follow live Budget Day updates on Tuesday, or read the latest breaking news, on the Irish Mirror homepage HERE.

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