One Family has outlined below the main changes in Budget 2025 announced on 1st October 2024, which may impact on people parenting alone or sharing parenting. If you have any further queries, please call the askonefamily helpline Monday-Friday on 0818 662212 or 01 6629212 or email us at helpline@onefamily.ie. 

 

 

Social Welfare Supports

 

Core Social Welfare Payments

 

January 2025 

  • Maximum rate of all core weekly payments increases by €12 including One-Parent Family Payment, Jobseeker’s Transitional Payment, Jobseeker’s Allowance and Carer’s Allowance.  There will be proportionate increases for people getting a reduced rate of payment. 
  • Weekly rates of Child Support Payment (previously known as Increase for a Qualified Child) will increase by €8 to €62 for those aged 12 and over, and by €4 to €50 for under 12s.  
  • €15 increase in Maternity/Paternity/Adoptive/Parent’s Benefit. 
  • Newborn Baby Grant will see a double payment of Child Benefit of €280 per child, in addition to the first month of Child Benefit (€140). Babies born in December 2024 will receive the Newborn Baby Grant alongside their January Child Benefit payment. 

 

Bonus Payments (Cost-of-Living Measures)

 

October 2024 

  • Cost-of-Living Double Payment will be paid to people receiving social welfare payments long term (for over 12 months), recipients of  One-Parent Family Payment, Jobseeker’s Transitional Payment, Jobseeker’s Allowance, Disability Allowance and Carer’s Allowance. 

November 2024 

  • €100 cost-of-living lump sum payment for people getting Child Support Payment (previously known as Increase for a Qualified Child) for each qualified child on your core social welfare payment. 
  • A double Child Benefit payment for each eligible child will be paid to all families in November and December 2024. 

December 2024  

November 2024 – March 2025 

  • All domestic electricity customers, regardless of income, will get €250 credit to help reduce electricity bills. The credit will be paid in 2 instalments of €125 each. 

 

Working Family Payment

 

November 2024 

  • €400 Cost-of-Living Lump Sum Payment will be paid to all families in receipt of the Working Family Payment. 

January 2025 

  • The Working Family Payment threshold will increase by €60 per week regardless of family size in line with increases to the minimum wage. This means more people may qualify for the payment. If you already receive it, you may see a small increase in your weekly payment, depending on your net household income. Please note any increases in your net take home pay or social welfare payments will be included in the means test at your next review.The new Working Family Payment income thresholds are:One child- €705; Two children- €806; Three children- €907; Four children-€998; Five children- €1,124; Six children- €1,240; Seven children- €1,376 and Eight or more children- €1,472.

 

Fuel Allowance
 

November 2024 

  • Fuel Allowance weekly rate remains at €33 per week. 
  • Current recipients of Fuel Allowance will get an additional once-off payment of €300.

Supports for Carers and People with Disabilities
 

November 2024

January 2025 

  • Carer’s Allowance will now be a qualifying payment for Fuel Allowance, if you meet all the eligibility criteria for Fuel Allowance. 
  • Carer’s Benefit will be extended to those who are self-employed. 

June 2025 

  • Carer’s Support Grant will increase by €150 to €2000. 

July 2025 

  • Carer’s Allowance income disregard increased to €625 for a single person and €1250 for a couple. This is the amount of assessable household income that is excluded from the means test.

Childcare 

  • No changes to childcare subsidies under the National Childcare Scheme
  • Increases to universal subsidies announced in Budget 2024 were implemented in September 2024. 

 

Education: Primary to Third Level 

  • From the 2025/26 academic year there will be free schoolbooks for all in secondary school. 
  • Junior and Leaving Certificate examination fees will continue to be waived. 
  • The Hot School Meals programme will be extended in 2025 to all non-DEIS primary schools on a phased basis from April 2025 and School Meals Holiday Hunger pilot project will start in summer 2025. 
  • A once off 33% reduction to the student fee for 14,000 apprentices attending higher education institutes.  
  • A once off €1,000 reduction in the student contribution fee that will benefit an estimated 103,000 higher education students who are eligible for the free fees initiative.  
  • €9 million funding to increase PHD stipends from €22,000 to €25,000 per annum.  
  • A once off increase to the Postgraduate Fee Contribution Grant from €4,000 to €5,000 for eligible students.  
  • A once off additional €10 million will be provided towards the Student Assistance Fund.  
  • Increasing the Rent Tax Credit from €750 to €1,000 for students living in purpose-built student accommodation, private rentals, digs, or rent a room arrangements. 
  • Increasing the Special Rate of Maintenance Grant threshold from €26,200 to €27,400.  
  • Increasing Standard Rate Maintenance Grant thresholds and Student Contribution Grant thresholds by 15 per cent.  
  • Increasing the Postgraduate Fee Contribution threshold and the Student Part-Time Fee Scheme threshold to match the new 100 per cent Student Contribution threshold of €64,315.  
  • The first €5,000 of any scholarship/bursary received by a student will not be included as income in the SUSI grant means test.  

Taxation  

January 2025 

  • National minimum wage up €0.80 to €13.50 per hour. 
  • The Personal, Employee and Earned Income tax credits will increase by €125 to €2000 per year. 
  • The Home Carer Tax Credit will increase by €150 to €1,950. 
  • €300 increase in the Incapacitated Child Tax Credit from €3,500 to €3,800. 
  • The Single Person Child Carer Credit will increase by €150 to €1,900 and those qualifying for this credit will continue to have an increase of €2,000 in the income tax standard rate cut-off point from €46,000 to €48,000. 
  • Single, widowed or surviving civil partners will have an increase of €2,000 in the income tax standard rate band cut-off point from €42,000 to €44,000. Anyone earning up to €44,000 will pay tax at the standard 20% rate. Any income over €44,000 will be taxed at the higher 40% rate. You may also qualify for Single Person Child Carer Credit which further increases the standard rate band by €4,000. 
  • The ceiling of the 2% USC band will increase to €27,382. The change was made to ensure the salary of a full-time worker on the minimum wage will remain outside the higher rates of USC. The USC exemption for medical card holders stays in place. 
  • A reduction in the middle rate of Universal Social Charge (USC) from 4% to 3%. 

November 2024 – April 2025 

  • The application of the second reduced VAT rate of 9% to gas and electricity supplies is extended for six months until 30 April 2025.
     

Housing 

  • Renters Tax Credit increased from €750 to €1000 per year for tax years 2024 and 2025. This only applies to private renters who are not currently receiving any other housing supports such as Housing Assistance Payment or Rent Supplement. The credit applies to each tenant rather than each tenancy.  
  • The Help to Buy Scheme is extended until the 31st December 2029. 
  • The First Home Scheme will receive a further €80 million in funding in 2025 which will be matched by participating banks, meaning €160 million will be available next year to support the purchase of approximately 2,000 homes for first time buyers. 
  • The Mortgage Interest Tax Credit introduced in Budget 2024 for taxpayers who make payments in respect of a qualifying loan for a principal private residence is being extended to 2024. The relief will be calculated on the increase in interest paid in 2024 over interest paid in 2022. The value of the credit and all qualifying criteria remain unchanged.
     

Transport 

9 October 2024 

  • Petrol and diesel prices are set to rise due to the ongoing increases in the rate per tonne of carbon dioxide. This means motorists will see a 60 litre fill of petrol and diesel rise by €1.28 and €1.48 respectively. 

Ongoing 

  • The 20% reduction in public transport fares will continue in 2025. 
  • The 50% price reduction on the Young Adult Leap Card for people aged 19-25 and the 90-minute fare will continue in 2025. 
  • Free public transport will be extended to children up to 8 years of age. 
  • School Transport fee reduction will continue.