As Ireland gears up for the unveiling of Budget 2025, various announcements about key changes have sparked widespread interest. With a focus on tackling the cost of living crisis, the government has introduced significant measures, including energy credits, pension increases, and tax cuts. Let’s break down what’s on the table for the year ahead.

Energy Credits to Ease the Pressure

One of the most anticipated moves in Budget 2025 is the inclusion of two energy credits of €125 each, set to be deducted from electricity bills later this year. With the sharp increase in energy costs over the past year, this measure is designed to provide immediate relief to households facing high utility bills. The credits, part of a broader €2 billion cost-of-living package, aim to ensure that families don’t fall behind during the winter months.

Health Minister Stephen Donnelly has also secured €30 million for new medicines, while the Arts sector has received a boost with record funding for Culture Ireland and Fáilte Ireland.

Pension Increases and Other Welfare Measures

The Tánaiste, Micheál Martin, confirmed that pension payments will rise by €12 per week as part of Budget 2025, a move aimed at helping retirees cope with inflation and rising living costs. This increase is part of a broader welfare package, which includes two double child benefit payments expected before Christmas.

Reports from the Irish Times also indicated that Universal Social Charge (USC) on incomes between €25,000 and €70,000 will see a cut from 4% to 3%. This cut is particularly aimed at low- and middle-income earners, with an estimated 80-cent per hour raise for the minimum wage, bringing it to €13.50 per hour.

Changes to Cigarette Prices and Tax Cuts

Budget 2025 is also set to target smokers, with cigarette prices expected to rise by €1 per pack. The move, seen as a public health measure, builds on last year’s 50-cent increase and will likely impact smokers heavily.

In terms of tax, a €100 increase is expected for single-person tax credits, along with cuts to the USC. This tax relief is aimed at easing financial pressure on workers as inflation continues to affect wages and costs.

A Budget That Balances Social Support and Economic Stability

Budget 2025 offers a mixed bag of benefits and challenges. While energy credits, pension increases, and tax cuts provide some relief, the rising costs of cigarettes and other goods signal a government intent on balancing social support with economic stability. As the cost-of-living crisis continues to affect Ireland, these changes offer both immediate and long-term solutions for the country’s economic health.

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