January doesn’t just ring in a new year, it also heralds the onset of numerous cost of living changes.
From significant boosts for thousands on social welfare to certain drivers facing increases – nearly everyone will feel the impact in some way, reports RSVP Live.
Here’s the lowdown on what you need to know for January 2025.
Social welfare increases
Social welfare increases have been decided with the maximum weekly rate of Maternity Benefit, Adoptive Benefit, Paternity Benefit and Parent’s Benefit set to rise by €15, while all other weekly social welfare payments will see an increase of €12 with proportional increases for qualified adults and those on reduced rates of payment. The Increase for a Qualified Child (IQC) will be rebranded as the Child Support Payment.
The weekly rate will go up by €4 from €46 to €50, for children under 12 years of age. It will rise by €8 from €54 to €62 for children aged 12 years and over.
The Domiciliary Care Allowance will jump from €340 per month to €360 per month, while the Carer’s Support Grant, which is paid annually, will now be worth €2,000 instead of €1,850. Here are all the payments being increased by €12, with proportional increases for qualified adults and people on reduced rates of payment:
- State Pension (Contributory)
- State Pension (Non-Contributory)
- Widow’s, Widower’s or Surviving Civil Partner’s (Contributory) Pension
- Widow’s, Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension
- Jobseeker’s Benefit
- Jobseeker’s Allowance
- One-Parent Family Payment
- Health and Safety Benefit
- Farm Assist
- Deserted Wife’s Benefit
- Deserted Wife’s Allowance
- Supplementary Welfare Allowance
- Illness Benefit
- Invalidity Pension
- Disability Allowance
- Blind Pension
- Injury Benefit
- Disablement Benefit
- Death Benefit Scheme
- Carer’s Benefit
- Carer’s Allowance
- Guardian’s payment
However, the following payments will not be increased:
- Back to School Clothing and Footwear Allowance
- Child Benefit
- Fuel Allowance
- Living Alone Increase
- Island Increase
- Widowed or Surviving Civil Partner Grant
Working Family Payment and Working Family Payment income limits
The income limit for one child will rise from €645 to €705, for two children from €746 to €806, for three children from €847 to €907, for four children from €938 to €998, for five children from €1,064 to €1,124, for six children from €1,180 to €1,240, for seven children from €1,316 to €1,376 and for eight children or more from €1,412 to €1,472.
Fuel Allowance
The Fuel Allowance means test disregard for people aged 66 and over will be €524 for a single person and €1,048 for a couple. Carer’s Allowance will become a qualifying payment for Fuel Allowance.
Employment programmes
People on Community Employment (CE), Tús and the Rural Social Scheme will get an increase of €12 per week.
People on the Work Placement Experience Programme will get an increase of €24 per week.
Means test
If you’re receiving the State Pension (Non-Contributory), Disability Allowance or Blind Pension, the amount disregarded when selling your home to move into care will rise from €190,500 to €337,500.
Small benefit exemption
Small benefit exemption allows employees to receive some vouchers or other non-cash benefits each year tax-free. From 1 January 2025, the maximum exemption will increase from €1,000 to €1,500, including up to five non-cash benefits per year (up from two benefits per year).
Small benefit exemption
The national minimum wage will see an increase of 80 cents to €13.50 per hour from 1 January 2025.
Universal Social Charge
The Universal Social Charge’s 4% rate will be reduced to 3% from 1 January 2025. The entry point for this rate will increase by €1,622, in line with the increase to the national minimum wage, so it will apply to income between €27,382 and €70,044.
VAT
VAT registration thresholds will increase to €85,000 for goods and €42,500 for services from 1 January 2025.
Retirement Relief
Retirement Relief’s upper age limit will increase from 65 to 70 from 1 January 2025. If a child or children sell assets worth over €10 million within 12 years of receiving them, a clawback of the relief will be applied. However, if the assets are retained for more than 12 years, Capital Gains Tax (CGT) will be fully waived.
Heat pumps
The VAT charged for installing a heat pump will be reduced from the standard rate at 23% to the 9% reduced rate from 1 January 2025.
Irish Life Health
Irish Life Health will be hiking their prices by an average of 3.7% from January. New customers will feel the pinch from the first day of the month, while existing customers will see the changes when their policy is up for renewal.
Tolls
Toll charges are set to rise from 1 January 2025, including a €1 increase on the Dublin Port Tunnel toll for southbound traffic during peak morning hours. More information about these increases can be found on the Transport Infrastructure Ireland website.
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