Budget 2025: Boosts for Social Welfare Recipients
As the announcement of Budget 2025 draws near on October 1st, several important changes are expected across various social benefit schemes. With its proposed €8.3 billion package, this budget could bring significant updates that will impact families, renters, and those relying on social welfare. Here’s what we know so far about some of the key benefits expected in the upcoming budget:
1. Child Benefit
Currently, Child Benefit is €140 per child per month, but there are strong indications that Budget 2025 may increase this to €150 per child. This would offer families some relief amidst ongoing cost-of-living pressures.
2. Fuel Allowances
Fuel Allowance provides financial assistance to low-income households to help cover energy costs, particularly during the colder months. At present, the Fuel Allowance stands at €33 per week. In light of rising energy prices, there are discussions about a possible increase, with some proposals suggesting a €5 rise per week, bringing the total to €38 per week. This would be a significant relief for those struggling with energy costs.
3. Social Welfare Increases
There is widespread anticipation for a €25 weekly increase in key social welfare payments. While this may apply to payments like the State Pension, Jobseeker’s Allowance will likely not see an increase. Additionally, there are proposals for a new €30 disability payment to address the extra costs faced by people living with disabilities.
4. Mortgage Interest Relief
With rising mortgage rates, there has been a push for the return of Mortgage Interest Relief to ease the financial burden on homeowners. The scheme, which previously offered tax relief to homeowners on the interest paid on their mortgages, is expected to make a comeback. The exact details of this relief, such as percentage rates or thresholds, will be clarified during the budget announcement.
5. Parental Benefit and Leave
Parent’s Benefit, currently €274 per week, could be increased to €350 as part of the Budget 2025 provisions. Advocates are also pushing for an extension of parental leave from 9 weeks to 13 weeks per parent, which would be a much-needed change for new families.
6. Rent Tax Credit
Renters in Ireland currently benefit from a tax credit of €750 for individuals and €1,500 for couples. It is widely expected that Budget 2025 will increase these credits to €1,000 for individuals and €2,000 for couples, providing crucial relief in the face of rising rents. This would provide considerable relief to renters facing high housing costs, with the ability to claim this credit for both 2024 and 2025.
7. Christmas Bonus
The Christmas Bonus, traditionally paid at 100% of a recipient’s weekly social welfare payment, is expected to remain unchanged in Budget 2025. This bonus provides a much-needed financial boost for many households during the holiday season.
Conclusion
Budget 2025 is poised to bring important changes across these critical social benefits, offering some relief to families, homeowners, and those on social welfare. Keep an eye out for the official announcements on October 1st to understand how these changes will affect your financial situation.
Stay updated with DublinLedgers for in-depth analysis and breakdowns of the Budget once it’s revealed!
