Explainer: What you need to know on Budget 2025

Budget 2025 was announced by the government on Tuesday, 1 October, and broke all records for being the biggest budget with a grand total of €10.5 billion.

The budget was delivered by Fianna Fáil’s Minister for Finance, Jack Chambers, and Fine Gael’s Minister for Public Expenditure, Paschal Donohoe.

Whilst there is no exact annual date as to when the budget is announced, it is usually publicised between mid-October and September, with some exceptions.

Conversely, the earlier release of this budget comes at a time when the country could have an early general election, as indicated by various political figures.

Taoiseach Simon Harris stated that the budget is similar to last year.

What’s Changing for Your Paycheck, Pints, and Packs

• A pack of 20 cigarettes have increased by €1.
• 50 cent per ml of e-liquid will be imposed on e-cigarettes and e-liquids.
• There was no excise duties added to alcohol.
• Universal Service Charge (USC) will be lowered from 4% to 3% on incomes from €25,000 to €70,000.
• The minimum wage will increase by 80 cent to €13.50 per hour.

Education

• The hot schools’ meals programme will be extended to all remaining primary schools throughout the country.
• Reduced pandemic fees for school transport will remain in place.
• Free schoolbook programme to be extended to Leaving Certificate students.
• Students at higher level education will get €1,000 off the college admissions fee, bringing it from €3,000 to €2,000.
• Postgraduate students will see a €1,000 increase in their contribution-grant, which will go from €4,000 to €5,000.
• €1.5 billion will be invested, over the course of six years, into further and higher education.
• Funding will be made available to support 6,800 apprentice registrations.

Cost of Living Package

• Increase of €12 to weekly rates of Social Protection Payments. Additionally, there will be two double payments which will be given in October and December.
• Parents of newborns: Once off baby boost of €420. €15 weekly increase on paternity, maternity and parent benefits.
• Extended 9 percent vat on gas and electricity for an extra 6 months.
• Fuel allowance will be extended to over 66’s.

Housing

• Tenant’s tax credit will rise from €750 to €1,000 and €2,000 for couples who are jointly assessed.
• €1.25 billion has been given to the Land Development Agency, who provide affordable and social homes, bring the total funding available to them to €6.25 billion.
• The Help to Buy Scheme has been extended until the end of 2029.
• Properties which are worth more than €1.5 million will have to pay 6% stamp duty.
• The current 1% stamp duty will apply to properties valued at just under €1 million and a 2% duty will be imposed on properties valued above €1 million.
• The landlord’s pre-letting relief has been extended to 2027, to help owners of vacant properties bring accommodation into the rental system.
• A tax increase from five to seven times the property’s existing base Local Property Tax rate has been applied to vacant properties.

Climate

• €1.7 billion will be made available for the construction of schools and homes, and for the improvements of hospitals. This funding will also be used to tackle climate under the National Development plan.
• €90 million has been allocated for retro fitting social homes.
• Carbon tax will raise by €7.50 per tonne on petrol and diesel.
  • As a result, 60 litres of diesel will now cost €1.48 more, with petrol costing €1.28 more.

The grand total for carbon tax revenue is standing at €951 million, this will be allocated for the energy efficiency of homes.

Health

• Two new surgical hubs, in Galway and Swords in Dublin, will be built, along with an increase in GP training places.
• 600,000 home support hours will be added and an additional 495 beds across hospitals and community services.
• Following extensive campaigning, free hormone replacement therapy (HRT) will be introduced for women.

Transport

• Free public transport for children from 5-8 years old.
• Using the free travel pass, over 70’s will be able bring a friend on public transport without any additional cost.

Farming

• €2 billion has been allocated to the Department of Agriculture
• €10 million towards animal health.
• €13 million to the new Tillage Incentive Scheme. Which aims at reducing the dependency on imported feed material.
• €22 million contribution of sleep welfare.
• €8 million to the national beef welfare scheme.

Other

• €1 billion to Irish Water.
• €226 million for tourism in 2025.
• €380 million has been allocated for arts and culture.

Undoubtedly all will wonder about the Apple back taxes. Minister Paschal Donohoe said that the funds will be used in strategic investments, which includes, water, electricity, transport and housing for the long term.

Reported by Leo Snygans and Gearóid Ó Droighneáin