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16th September 2024
10:10am BST
With the budget set to be revealed on October 1st, ministers are currently deliberating over key measures designed to ease the ongoing cost-of-living crisis.
Budget 2025 is shaping up to be significant, with a total package of €8.3 billion. Of this, €1.4 billion is expected to be allocated to new tax measures.
As the countdown continues, speculation is growing around several major social welfare schemes, including Child Benefit, the Fuel Allowance, and the State Pension.
Here’s a look at what we know so far:
It sounds like parents and guardians could expect a welcome boost to their monthly Child Benefit payments this year.
It is anticipated that a double Child Benefit payment will be issued around December, providing families with some extra financial relief just in time for the holiday season.
There are also unconfirmed reports suggesting that the government may introduce a €10 increase to the current monthly Child Benefit, which has been fixed at €140 per child for many years.
Budget 2025 is also expected to bring positive news for pensioners.
The government is reportedly considering a €12 weekly increase to the State Pension.
If implemented, this would provide a significant lift to pensioners who are grappling with the rising cost of living.
Changes to the Fuel Allowance are also on the cards.
Currently, the Fuel Allowance is available to individuals over the age of 70 or those on long-term welfare payments.
However, talks are underway to reduce the age of eligibility to 66.
While these changes have yet to be confirmed, the potential expansion of the scheme could allow more households to qualify for this essential payment, which runs from September to April.
The annual Christmas Bonus is likely to remain a feature of Budget 2025.
Traditionally, this bonus is worth 100% of recipients’ normal weekly social welfare payment, providing a significant financial boost during the festive season.
In addition to the Christmas Bonus, there are reports that two lump sum payments will be announced in Budget 2025.
These payments, designed to offer immediate financial relief, are expected to be disbursed in October, directly after the budget announcement.
According to a senior government source, the details of these cash boosts are currently being finalised, but they are set to provide timely support to those struggling with ongoing financial pressures.
The Minister for Finance, Jack Chambers, has also indicated that increases to general social welfare payments will be part of Budget 2025.
While the exact level of these increases are yet to be confirmed, further details are expected in September as Chambers and Minister for Social Protection Heather Humphreys finalise the plan.
However, it has been confirmed that Jobseeker’s Allowance will not see an increase this year.
In contrast, previous budgets have offered significant boosts to other payments, such as a €300 Fuel Allowance payment, a €400 Disability Grant, and a €400 Working Family Payment, all introduced in Budget 2024.
Similar measures may also be considered this time around.
With Budget 2025 just weeks away, the government faces mounting pressure to address the economic challenges many households are facing.
If the proposed measures go ahead, they could provide much-needed support to families, pensioners, and low-income individuals as they continue to cope with rising living costs.
