As we ring in the new year here in Cork, several important cost-of-living and social welfare changes came into effect today.
The measures were announced in October as part of Budget 2025’s public spending package. The changes include tax reductions, an increase to the minimum wage, social welfare payment bumps, and more.
Here’s everything you need to know about the changes coming into effect on January 1:
- A €15 increase in Maternity Benefit, Paternity Benefit, Adoptive Benefit and Parent’s Benefit
- Weekly rates of Child Support Payment (previously known as Increase for a Qualified Child) will rise by €8 to €62 for those aged 12 and over and by €4 to €50 for those under 12
- A Newborn Baby Grant of €280 in addition to the first month of Child Benefit (€140) for children born on or after 1 December 2024
- The income thresholds for the Working Family Payment will go up by €60 a week regardless of family size.
- Carer’s Benefit will be extended to self-employed people
- Carer’s Allowance will become a qualifying payment for Fuel Allowance, subject to meeting all criteria of the Fuel Allowance scheme, including passing the Fuel Allowance means test
- A €20 increase a month in Domiciliary Care Allowance
- The amount not taken into account when you sell your home to move into care will rise to €337,500 from January 2025 for those who receive State Pension (Non-contributory), Disability Allowance or Blind Pension.
- The Fuel Allowance means test disregard has been extended to those aged 66 and over – €524 (single person) and €1,048 (couple), meaning more people will qualify for this support.
- From January 1st, a €125 energy credit will be paid to all households.
- Employees can receive some vouchers or other non-cash benefits each year without paying taxes on them. From 1 January 2025, there will be an increase in the maximum exemption, from €1,000 to €1,500, reports RSVP Live. This can include up to five non-cash benefits per year (an increase from 2 benefits per year).
- The national minimum wage will see an increase of 80 cents to €13.50 per hour.
- The 4% rate of Universal Social Charge (USC) will be reduced to 3%
- The VAT charged for installing a heat pump will be reduced from the standard rate of 23% to the 9% reduced rate
The full list of taxation measures and expenditure measures from Budget 2025 are available on the Irish Government website.
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