The Minister for Agriculture, Food, and the Marine has welcomed today’s budget announcement, highlighting the Government’s €8.3 billion package of extra spending and tax cuts aimed at easing the cost of living.

Minister Charlie McConalogue emphasised that Budget 2025 is heavily focused on addressing the ongoing financial pressures faced by Irish households.

Here are the key takeaways from Budget 2025:

Cost of Living Relief

• A €2.2 billion package overall.
• The minimum wage will increase by 80 cents to €13.50 per hour from January 1st, 2025.
• Reduced 9% VAT on electricity and gas will be extended until April 30th, 2025.
• Two energy credits of €250 will be granted, one this year and another in the new year.
• Childcare costs will be cut by €1,100 for full-time care through a 44% boost in the National Childcare Scheme, benefiting 216,000 children in 2025.

Welfare Increases

• Weekly social protection payments, including the State pension, will rise by €12.
• A “baby boost” of €420 for new parents.
• A €400 lump sum payment for Working Family Payment recipients.
• Two double child benefit payments of €280 per child in November and December.
• An October bonus double payment for long-term social protection recipients.
• Maternity, paternity, adoptive, and parent’s payments will increase by €15.

Tax Measures

• An income tax package worth €1.6 billion is confirmed.
• The Universal Social Charge (USC) will see cuts, with the entry level for the 3% rate rising to €27,382.
• Capital Acquisition Tax thresholds will increase from €335,000 to €400,000.
• A 6% stamp duty will apply to properties valued over €1.5 million.

Housing Initiatives

• €7.8 billion will be allocated to the Department of Housing, including €2 billion for the construction of 10,000 new social homes.
• Renters will see their tax credit rise by €250 to €1,000, or €2,000 for jointly assessed couples.
• The Help to Buy scheme is extended to 2029, and mortgage interest relief will continue until 2025.
• The Vacant Homes Tax rate will increase to seven times the current Local Property Tax rate.

Health Sector Investment

• An additional €2.7 billion will go to the health sector over the next two years.
• 495 new beds will be introduced in hospitals and community services.
• Payments to women impacted by CervicalCheck failures will be exempt from income, capital gains, and capital acquisition taxes.
• Continued support for women’s health initiatives, including free access to IVF and Hormone Replacement Therapy.

Excise and Vaping Taxes

• Excise duty on a pack of cigarettes will increase by €1, bringing the price to €18.05.
• A 50 cent per ml tax on e-liquid for vapes will be introduced from mid-2025.
• No changes to alcohol excise duties.

Climate Action and Transport

• A €3 billion fund will support climate transition efforts between 2026 and 2030.
• VAT on heat pump installations will be reduced to 9%.
• The carbon tax on petrol and diesel will rise by €7.50 per tonne from October 9th.
• Public transport will be free for children under the age of 9, and a Universal Companion Pass will allow over-70s to bring a companion free of charge.
• Nearly €1 million per day will be invested in cycling and walking infrastructure, with €3 billion earmarked for water and energy infrastructure projects.

Education Expansion

• Free schoolbooks will be provided up to Leaving Certificate level.
• Exam fees for Junior and Leaving Certificates will be waived.
• The hot meal program will be extended to all primary schools in 2025.
• Funding will be provided for an additional 786 special education teachers and 1,600 more Special Needs Assistants.

Justice and Defence

• €3.9 billion will go towards the justice sector, including the recruitment of 1,000 new Gardaí and 350 prison officers.
• 400 additional staff will be hired to expand the international protection processing system.
• A net increase of 400 new Defence Forces personnel is projected for 2025.

Support for Businesses

• A €170 million Energy Subsidy Scheme will aid retail and hospitality businesses.
• Employees can receive up to €1,500 in bonuses from employers tax-free.
• The temporary universal relief on Benefit-in-Kind for company cars will be extended for another year.

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