Budget 2025: Major Cost of Living Relief with ‘Baby Boost’ and Double Payments
Ardee News and Sport — The Government has unveiled a comprehensive €2.2 billion social protection package as part of Budget 2025, aimed at easing the financial strain many households are experiencing due to the ongoing cost of living crisis. Touted as one of the largest social welfare boosts in the country’s history, the budget introduces a wide range of new measures designed to provide relief to families, pensioners, and low-income earners.
Among the most notable measures is a €12 weekly increase in core social welfare payments, including pensions. While Social Protection Minister Heather Humphreys had advocated for a €15 hike—placing pensioners and carers at the forefront—the Government ultimately agreed on a universal €12 raise for all social welfare recipients. This increase, along with several other headline announcements, reflects a robust effort to support vulnerable groups.
Other key highlights from Budget 2025 include:
• Double welfare payments: A bonus double payment will be given in October, followed by another in December, providing much-needed financial support as winter approaches. Additionally, welfare recipients will receive a 100% Christmas bonus payment in early December, continuing the tradition of the annual Christmas boost.
• Electricity credits: Universal electricity credits totaling €250 will be paid in two instalments—one before Christmas and another after—to help households manage rising energy costs.
• Fuel Allowance expansion: The eligibility for the Fuel Allowance will be extended to more people over 66, ensuring more households can afford heating during the colder months.
• Carer’s support: Carers will benefit from an increased Carer’s Support Grant, now set at €2,000, and self-employed individuals will also be able to claim Carer’s Benefit.
• “Baby Boost”: A new one-time “baby boost” payment of €420 for parents of newborns will begin in January 2025. This boost includes the regular €140 Child Benefit payment, plus an additional €280 to help cover the initial costs of welcoming a new baby.
• Double Child Benefit payments: Parents will receive two double payments of Child Benefit in November and December, worth €280 per child, providing an extra financial cushion before the end of the year.
• Reduced VAT on electricity and gas: The current reduced VAT rate on electricity and gas will be extended until April 2025, helping households manage energy costs through the winter.
Additional measures target a broad range of sectors, from education to housing and beyond:
• Reduced fees for students and apprentices: Fees will be slashed by €1,000 for students and apprentices during this academic year.
• Free public transport for children under 9: Public transport will now be free for young children, further easing costs for families.
• New universal companion pass for over-70s: Those over the age of 70 will now be eligible for a companion pass to bring a friend or family member along on public transport at no extra cost.
• Increased Rent Tax Credit: Renters will see their tax credit increase by €250, providing much-needed relief for those grappling with high rent prices.
• Tobacco and vape tax hikes: The price of a packet of cigarettes will rise by €1, while a new tax of 50c per ml of e-liquid for vapes will be introduced.
• Free schoolbooks and fee waivers: Schoolchildren up to Leaving Certificate level will receive free schoolbooks, and fees for both the Junior Cert and Leaving Cert exams will be waived.
• Hot school meals expansion: The hot school meals programme will be extended to all primary schools, ensuring that more children have access to nutritious meals during the school day.
In total, households are set to receive around ten different one-off payments between now and Christmas. These include lump-sum payments of up to €400 for disability support, carers, and working families, as well as fuel allowance top-ups and living alone grants.
As the country continues to face economic challenges, Budget 2025 promises significant relief, particularly for low-income families, pensioners, and those affected by rising energy price