Budget 2025: What's been announced?

Budget 2025 has been delivered by Minister for Finance Jack Chambers, followed by Minister for Public Expenditure Paschal Donohoe, in the Dáil today.

Here's what's been announced.

HEALTH:

• Budget 2025 will see additional funding of €2.7bn for the health sector over two years, bringing the total health allocation to €25.76bn.
• There will be an increase in the numbers working in the health service, not including disability services, and will reach over 130,000 whole-time equivalents, an increase of 27% percent since 2019.
• The minister said 495 new beds will be introduced across hospital and community services.
• There will also be 600,000 additional home support hours and continued support for women's health measures, including increased access to IVF and Hormone Replacement Therapy free of charge.

DEFENCE & JUSTICE:

• €1.35bn has been allocated for the Defence Forces. A 22% increase in capital investment will provide for the recruitment, training and support of a net increase of 400 Defence Forces members next year.
•  2025 will see the highest ever allocation to Overseas Development Assistance, when funding for international co-operation in the Department of Foreign Affairs will increase by €35m to reach over €810m.
• €2.1bn is being provided to support accommodation for those fleeing Russia's illegal war in Ukraine and to those seeking International Protection.
• There will be recruitment of up to 350 more staff at the Irish Prison Service as well as investment in prisoner care and rehabilitation.
• There will also be a further recruitment of 1,000 gardaí and up to 150 garda civilian staff.
• There will be an expansion of the international protection processing system, which includes an additional 400 staff across the area.
• An extra €7 million for organisations providing supports for victims of domestic and gender-based violence has also been announced.

ARTS & CULTURE:

€380m is being allocated to Arts and Culture in 2025; €107m is being allocated to the Gaeltacht. €226m to Tourism; €328m in funding to media, including €6m for the independent broadcasting sector; €231m in sports funding.

TRANSPORT & CLIMATE:

•  €3.9bn has been announced for the Department of Transport, comprising €1bn in current funding and €2.9bn in capital funding.
• There will be further investment in cycling and walking infrastructure and the continuation of temporary fair initiatives including the Young Adult Card for 19 to 25 year olds and the 90-minute fare.
• Free public transport will be extended to children aged 5 to 8.
• Over €3bn is being set aside to invest in "climate transition and preparing for a greener future" between 2026 and 2030.
• Carbon Tax is being increased by €7.50 per tonne, bringing the total Carbon Tax revenue available for investment to €951m.

AGRICULTURE:

• €716 million is being provided for farmers taking part in agri-environmental schemes such as ACRES.

HOUSING:

• The Department of Housing, Local Government and Heritage is being allocated €7.8bn in Budget 2025.
• €2bn will be available in 2025 to deliver 10,000 new build social homes.
• €680m allocated to key affordable housing schemes, to support the delivery of 6,400 affordable homes in 2025.
• €1.56bn in current funding will continue to support 66,000 households in active social housing tenancies.
• €186m in funding to support regeneration of towns and urban areas.
• €23m to deliver Traveller community-specific accommodation.
• €100m for grants to adapt the homes of older people and people with a disability.
• €90m allocated to retrofit around 500 social homes.
• An extra €1.7bn will be provided next year for more homes, schools and hospital infrastructure and also to tackle climate change.
• The Help to Buy scheme is being extended until the end of 2029.
• Rent tax credit is increasing by €250, bringing it to €1,000 and €2,000 for a jointly assessed couple for 2025.

SOCIAL WELFARE & CHILDCARE:

• Minister Paschal Donohoe said that there will be two double payments of Child Benefit in November and December. There will also be a double payment of the Foster Care Allowance.
• A €400 lump sum payment will be made to recipients of the Working Family Payment.
• The will also be a €100 lump sum payment per child to recipients of Qualified Child Increase payments.
• Funding for the National Childcare Scheme will rise by 44% which, the minister says, will result in a reduction in fulltime childcare costs by €1,100.
• There will be an €12 increase for those in receipt of a weekly Social Protection payment.
• The Carer's Allowance Means Test disregard is being increased to €625 for a single person and €1,250 for a couple.
• The Domiciliary Care Allowance is being increased by €20.
• The Carer's Support Grant is being increased by €150 to €2,000 .
• Maternity, paternity, adoptive and parents' payments are being increased by €15.
• The weekly rates of the Increased for a Qualified Child are going up by €4 for under 12s and by €8 for over 12s.
• A newborn grant of an additional double child benefit payment is being introduced - meaning a €420 to families for each newborn child.

EDUCATION:

• There will be a €336m increase for disability services. Tusla's budget will rise to €1.2bn.
• There will be a provision for 768 additional special education teachers and 1,600 more SNAs.
• The Free Schoolbooks initiative is being extended to all transition and senior cycle pupils in recognised post-primary schools within the free education scheme.

TAX AND EXCISE DUTY:

• In relation to Carbon Tax, the rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €56 to €63.50 from 9 October.
• The VAT charged on the installation of heat pumps will be lowered from the standard rate at 23% to the 9% reduced rate.
• A domestic tax is being planned for next year on e-cigarettes on public health grounds. The tax will apply to all e-liquids at a rate of 50c per ml of e-liquid. A typical disposable vape contains 2ml of e-liquid, and costs in the region of €8. This new tax will bring the price of such a product to €9.23 including VAT.
• The excise duty on a packet of 20 cigarettes is being increased by €1, with a pro-rata increase on other tobacco products. This will bring the price of cigarettes in the most popular price category to €18.05.
• The VAT registration thresholds for the supply of goods and services are to be raised.
• The 9% reduced VAT rate for gas and electricity will be extended for another 6 months to 30 April 2025.
• An exemption from Income Tax, Capital Gains Tax and Capital Acquisitions Tax on payments made to the women impacted by the failures in the CervicalCheck national screening programme is being introduced.
• The annual limit for the Small Benefit Exemption is increasing from €1,000 to €1,500.

• There are changes to measures aimed at carers.
• The following is being increased: The Home Carer Tax Credit by €150; The Single Person Child Carer Credit by €150; The Incapacitated Child Tax Credit by €300; and The Dependent Relative Tax Credit by €60. The Blind Tax Credit will be increased by €300.
• The entry threshold to the new 3% rate is being increased by €1,622 to €27,382, in line with the increase to the national minimum wage.
• This means that a full time worker on the minimum wage will see an increase in their net take home pay of approximately €1,424 on an annual basis.
• A single person earning €20,000 or less in 2025 will now be outside of the income tax net.
• Minister Chambers said he is increasing the main tax credits, the Personal, Employee and Earned Income Credits, by €125.
• Standard Rate Cut Off Point increased by €2,000 to €44,000, with proportionate increases for married couples and civil partners.
• The USC - the 4.0% rate is reduced to 3%.
• As of 1 January 2025, the national minimum wage will increase by 80 cent per hour to €13.50 per hour.
• Tax revenue is set to amount to €105.7 billion.

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