Budget 2025: Here's what you need to know
What we know so far about Budget 2025:
-There will be two double child benefit payments before Christmas worth €280 per child
- The Universal Social Charge will be cut while the higher income tax threshold will rise by €2,000 with tax credits set to increase
- All welfare payments, including pensions, to increase by €12 per week
- A universal electricity credit will amount to €250 in two payments
- The tax credits for renters will climb by €250
- Parents of newborns will receive a once-off, triple child benefit payment
- Mortgage interest relief is to be extended
- There will be free schoolbooks up to Leaving Cert level
- National Minimum Wage will increase by 80 cent per hour.
Finance Minister Jack Chambers addressing the Dáil said:
"This Government, through successive budgets, has supported the individuals, families and businesses who played an integral part in ensuring our economy is in such a strong position today," he said.
Giving an economic outlook, Mr Chambers said three quarters of the Irish working-age population are now in employment. Ireland’s debt ratio is moving in the right direction, he said. Mr Chambers said that overall, the economy is in relatively good shape and that inflationary pressures have eased significantly – with inflation dropping from ten per cent to around 2 per cent. The easing of inflation allows for an improvement in wages, he said. And yet, despite the steep drop in inflation, the Minister has just announced to the Dáil a bumper €2.2bn cost of living package.
2.40pm - Minister Paschal Donohoe has finished his speech and is given a round of applause.
€107m will be allocated to the Gaeltacht.
Justice Sector
A Budget package worth €3.9 billion was unveiled for the justice sector.
As part of this spending, there will be an extra 1,000 gardai and 150 garda civilian staff.
An additional 400 staff will be hired in the international protection processing system.
An additional €7 million will be spent on support for victims of domestic and gender-based sexual violence.
Arts
Record numbers of people are visiting our cultural institutions.
Funding of €380m for arts and culture for next year for a wide variety of sectors.
€226m will be allocated for tourism in 2025.
Media
The Government parties will provide €16m to support the independent broadcasting sector and local media outlets.
Defence Forces
€1.35bn to go to the defence forces in 2025, a 22pc increase in capital investment to enable the advancement of major defence equipment and upgrades to existing equipment and projects.
Irish Prison Service
Irish Prison service funding up in 2025 with the aim of adding 350 extra staff, while extra funding will be allocated towards improving rehabilitation of prisoners and on facilities
Further & Higher ed
Almost €1.5 bn over six year to 2030 for capital investment for further and higher education.
Funding will support 6,800 apprentice registrations next year.
Mr Donohoe added that €472m will be provided to the Department of Rural and Community Development to "revitalise" rural Ireland.
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The minister said more than 3 billion euro was also being set aside between 2026 and 2030 to invest in climate transition.
The minister said that would be used to support designated environmental projects that could assist with reducing emissions, improving air quality, or improving biodiversity.
Social & Affordable Homes
The Department of Housing has been given €7.8 billion for a range of measures including €2bn towards 10,000 new-build social homes in 2025.
Some €680 million of that overall figure will be allocated to schemes which Public Expenditure Minister Paschal Donohoe said would support the delivery of 6,400 affordable homes.
Mr Donohoe said an “unprecedented” €1.6 billion will continue to support 66,000 social housing tenancies alongside an additional 7,400 social homes next year, as well as 38,000 social housing leases already in place.
It will also bring 10,000 new households under the Housing Assistance Payment and Rental Accommodation Schemes in 2025.
Apple Tax
In relation to the €14.1 billion of Apple back taxes, Paschal Donohoe said it was vital to make the best use of the funds in the long term.
He said the money would be invested in four “strategic investment pillars” – namely water, electricity, transport and housing.
“Investment in these areas will support the needs of our people, assist in growing our economy, and help in meeting our climate and nature goals,” he said.
The minister said officials in his department would begin work on developing an investment framework for using the Apple funds, ensuring there was co-ordination with investments already planned through the National Development Plan.
Health Service
Public Expenditure Minister Paschal Donohoe has announced a range of measures which he said will increase access, affordability and capacity in the Irish health service.
It includes 495 beds across hospital and community services and 600,000 additional home-support hours.
Meanwhile, the Government is increasing access to IVF and providing Hormone Replacement Therapy free of charge.
Mr Donohoe said the Budget will enhance the provision of youth mental health services and counselling for the Traveller community as well as Child and Adolescent Mental health Services.
€7.8bn to go to Department of Housing in this year's budget, with a further investment of €3bn to "build more homes and address affordability constraints."
Total capital investment next year will be €15bn for infrastructure.
€2bn available next year for 10,000 new social homes
Tusla's budget is set to rise to €1.2bn, the minister has confirmed.
Minister Donohoe said funding for the National Childcare Scheme would increase by a further 44pc next year.
There will be an increase of €336m in funding for disability services.
Paschal Donohoe said the carer’s allowance means test disregard for a single person has been doubled to €1,250.
Schools:
There will also be funding for more than 1,600 SNAs and 768 extra special education teachers in Irish schools.
There will be new funding for schools to allow them to continue to make childhood "smartphone free," the minister added.
Additional funding for school transport scheme
Free school book measure set to be extended to Leaving Certificate students. It currently is offered for pupils in Junior Infants right up to those in Junior Cycle of secondary school.
Social Protection
€12 weekly increase in social welfare payments
€200 lump sum in November for Living alone Allowance
Carer's Support grant to increase by €150 to €2,000.
Further €1bn for cost of living
October bonus double payments for social protection
Parents of newborns will receive a special one-off baby boost of €420.
Once-off 33pc reduction in fees paid by apprentices in third-level education.
Maternity, paternity, adoptive and parents' payment set to increase by €15, Minister Donohoe tells the Dáil.
Extending hot school programme to all remaining primary schools in 2025.
Additional funding for students through the student assistance fund. Increase of €1000 for post graduate students. €1000 reduction in student contribution fee.
€300 lump sum to Fuel Allowance recipients next month
€200 once-off payment to be paid to recipients of the living alone allowance
Every household will receive 2 energy credits of €125 worth a total of €250 between end of the year and start of next year.
"We have faced unprecedented challenges," Minister Donohoe says, adding that they were "external in origin" but caused "real impact at home."
Paschal Donohoe, Minister for Public Expenditure and Reform of Ireland, is now addressing the Dáil.
Minister Chambers has finished delivering his first Budget speech.
Gyms
- No tax relief for gym membership in this Budget
But Minister Chambers said his officials will work on this with a view to making a proposal in advance of next year's Budget.
Charities
- Barriers for charities who wish to have access to tax benefits under the Charities Donations Tax Scheme will be removed. Charities will no longer have to be established for at least two years to access the scheme.
VAT on installation of heat pumps will go down to the 9pc reduced rate from the current rate of 23pc.
Carbon Tax
The rate per tonne of carbon dioxide emitted by petrol and diesel vehicles will go from €56 to €63.50 from next Wednesday, October 9.
STAMP DUTY INCREASE TO 15PC
Up from 10pc to 15pc with immediate effect, the Minister says.
VAPES
Vapes will be hit with a 50 cent tax per millilitre of e-liquid under Budget 2025.
A disposable vape with 2 ml of e-liquid will now cost an extra €1 with the new vape tax.
It will commence in the middle of next year
Tobacco:
Increase of excise duty on a 20 packet of cigarette by €1.
This will bring the price of cigarettes in the most popular price catagroy to €18.05.
Rental Tax Credit
An increase in the rental tax credit has been announced, with this credit increasing to €1,000. The move means a couple in rented accommodation could claim €2,000 from Revenue.
This credit is also increasing to €1,000 for this year, up from €750
The Help to Buy scheme will be extended until the end of 2029
The Tax credit increases:
€150 home carer tax credit
€150 single person child carer tax credit
€300 incapacitated child tax credit
€300 blind person's tax credit
€60 Dependent Relative Tax Credit
Reduced 9pc VAT rate for gas and electricity for another 6 months
Universal Social Charge (USC) is down to 3pc. Last year, the rate reduced to 4pc from 4.5pc.
€125 personal tax credit
€105.7bn tax revenue forecast for 2025
€13.6bn more than Spring forecast
Attributable to corporation receipts and Apple tax
"We know that our public finances are heavily reliant on corporation tax, much of which is windfall in nature," the Minister said.
Employment set to increase by 110,000 by end of 2025
Unemployment projected to remain low at around 4.5pc next year, Minister Chambers said.
Domestic economy set to grow by 2.5pc this year this year, he added.
"Inflation has been at or below 2pc since March," the Minister said, adding this is "welcome news" for households.
The Minister has announced a further investment of €750m for development of electricity grid infrastructure.
This will make "a positive impact on future investment decisions" from indigenous and international companies.
€3bn for infrastructure spending
€1bn is to be invested in Irish Water.
13.05 Finance Minister Jack Chambers is addressing the Dáil.
"This Government, through successive budgets, has supported the individuals, families and businesses who played an integral part in ensuring our economy is in such a strong position today," he said.
Mr Chambers will speak first and will be followed by Paschal Donohoe, Minister for Public Expenditure and Reform.