Ireland Budget 2025: Key Points; Double Child Benefit; two €125 energy credits; USC cut by 1%; Opposition calls budget that abandons housing targets instead of increasing them;

The €2.2 billion package, which is peppered with one-off cost-of-living measures and tax cuts, is the Irish government's last budget before a general election.

The opposition called the budget abandoning the housing targets instead of increasing them. Sinn Féin's finance spokesman Piers Doherty dismissed the budget as "spin", branding the government "wasteful" and treating the public with "disdain".

Responding to government speeches in the Dáil for Sinn Féin, Piers Doherty said it was "not a gift budget" and "abandoning the housing budget".

Budget 2025 in brief⬇️

🧒Double child benefit payments
💡Two €125 energy credits
💸Minute wage will rise to €13.50
🍼€420 baby boost
🚬Cigarettes rise to €18.05
🏠Rental tax credit will increase to €1k
💰USC reduced by 1%
🏘️Help-to-buy scheme extended till 2029

Income tax

The standard rate cut-off point for PAYE workers has been increased by €2,000 to €44,000, with a proportional increase for married couples and civil partners.
USC's median rate was reduced from 4% to 3%, and the entry level increased by €1,622 to €27,382.
The amount of tax-free money an employer can pay employees as a bonus payment will increase to €1,500.

Cost of living

Households will receive two €125 energy credits, one this year and one next year.
From 1 January 2025, the minimum wage increases to €13.50 per hour.
The reduced VAT rate of 9% for gas and electricity will be extended till April 30, 2025.
Student contribution fees will be reduced by €1,000 and a one-time reduction of 30% on contribution fees for apprenticeships and higher education.

Social welfare

All weekly social welfare payments will increase by €12 under the 2025 budget.
Long-term welfare recipients will receive a double payment in October as well as a Christmas bonus.
Double payments of child benefit in November and December.
A 'baby boost' payment of €420 for the birth of a child.
Carers' Allowance will increase to €625 for an individual and €1,250 for a couple.
In November, recipients of Carers Support Grant, Disability Allowance, Blind Pension, Invalidity Pension and Domiciliary Care Allowance will receive a €400 payment.
All weekly social welfare payments will increase by €12 under the 2025 budget. This includes jobseeker's, disabled and carers' allowances and the state pension.
Pension rates will increase from next year, raising the maximum non-contributory pension to €297.30 for those aged 66 or over.
Pensioners living alone will also receive a lump sum of €200.
Along with the rate increase, everyone benefiting from any social welfare payments will receive a lump sum of €400.
Also, long-term social welfare recipients will receive a double payment this month. About 1.4 million people will benefit from it.
The baseline Carers Allowance will rise from €248 to €260 per week, while the Carers Support Grant will rise from €1,850 to €2,000.
Carers will now qualify for fuel allowance.
Disability Allowance recipients without dependents now receive €244 per week.
In addition, the threshold for receiving the allowance will increase to €625 for a single person and €1,250 for a couple. This is a significant change from the existing €450 and €900 thresholds.

The parents

For parents, there will be a €15 increase in maternity, paternity and adoptive parent payments.
Weekly child benefit will increase by €4 for children under 12 and €8 for children over 12.
Other one-off payments in the €2.2 billion cost-of-living package include €420 for new parents and €400 for working families.
They also get a €100 lump sum for each child who already receives standard benefit.

health

More details on health funding confirmed today:

Introducing 495 new beds for the health service in hospitals and community services, bringing the total number of beds to 18,000.
600,000 additional home support hours
Continued support for women's health measures, including access to free IVF and hormone replacement therapy

Donohoe added that the funding provided in Budget 2025 will enable improved provision of services including:

Youth mental health services
Counseling for the Traveler Community
Suicidal Bereavement Counseling
Cyber Safe Kids Initiative
Additional child and adolescent mental health services

Housing

Stamp duty on bulk purchase of houses increased from 10% to 15%.
Stamp duty rises to 6% for homes worth more than €1.5 million.
A further €1.25 billion will be made available to the Land Development Agency, bringing the LDA's total funding to €6.25 billion.
The rental tax credit is set to increase to €1,000 per person next year.

Justice is fair

The Irish Prison Service will recruit up to 350 staff as well as invest in prisoner care and rehabilitation.
There will also be a recruitment of 1,000 gardaí and 150 garda civilian staff.
There will be an expansion of the International Protection Processes system to include an additional 400 staff across the region.
An additional €7 million has been announced for organizations supporting victims of domestic and gender-based violence.

Community Recognition Fund

13 million euros will be provided to help the integration of arrivals from Ukraine into local communities.
The Minister announced an additional €25 million to the Community Recognition Fund.

Other taxes and credits

The inheritance tax threshold has been increased from €335,000 to €400,000 for children, and other thresholds have been increased for other capital acquisition taxes.
The Home Care Tax Credit has been increased by €150, with a similar increase for the Single Person Child Care Credit.
The VAT rate for the hospitality sector will remain at 13.5%, despite industry calls for a reduction.
Cigarettes from €1 to €18.05 from midnight tonight.
From the middle of next year, the excise duty on e-cigarettes will be 50c per ml of liquid.

Transportation

The Department for Transport has been allocated €3.9 billion, comprising €1 billion in current funding and €2.9 billion in capital funding. More investment will be made in cycling and walking infrastructure.
Those over 70 will be allowed to bring a loved one or friend on public transport for free. The youth travel card (19 to 25 years old) will also be extended by 90 minutes.
Free public transport will be extended to children aged five to eight years.

Defense Force

1.35 billion Euro has been allocated for defense forces.
The minister said the 22% increase in capital investment would go towards the recruitment, training and support of "400 Defense Force" members next year.
There will be further investment in measures such as "enhanced advertising for recruitment, maintenance of equipment and new and improved Defense Force uniforms".