Explainer: When is Budget 2025? And everything else you need to know

With a General Election expected as early as November or as late as March, Cabinet will be looking to appease the public with its final Budget this term.

It is billed as another “giveaway” budget with a large cost-of-living package, however there is some concern about avoiding an increase in inflation.

Taoiseach Simon Harris has said Budget 2025 will be similar to last year, including tax reductions, social welfare increases and a package of cost-of-living payments.

The Irish Independent has compiled a list of everything you need to know ahead of next month’s official announcement.

When?

Budget 2025 will be held earlier than previous Budgets by a week and will take place on Tuesday, October 1.

No exact time has been given, but newly-appointed Finance Minister Jack Chambers is expected to present it at around 1pm.

You can follow all the news, views and analysis on the day on our live blog.

Where to follow?

As part of our live coverage, the Irish Independent will provide breaking news, analysis and comment throughout the day. The Budget will also be broadcast live on Oireachtas TV and RTÉ One from the afternoon of Tuesday, October 1.

What we know so far

The overall Budget package will run to a total of €8.3 billion to play around with and, of this, taxation measures will account for €1.4 billion.

An Exchequer surplus of €3.8 billion was recorded to end-August, so Cabinet have money to play with to support individuals, workers and families as they vie to keep the old and entice new votes this upcoming general election.

Cost-of-living package

The Budget will include a new cost-of-living package that will help families and householders this year, the Taoiseach has said.

Payments delivered in lump sums in the previous two budgets were popular among the public, including fuel allowances and double payments for child benefit, which are likely to be announced again.

It is likely there would be a repeat of the €450 electricity credit that the Coalition gave to all customers in Budget 2024.

Double social welfare payments are also likely to be given out for Budget 2025.

An increase in the rental tax credit is also expected, and could be raised to as high as €1,000.

The move would mean a couple in rented accommodation could claim €2,000 from Revenue.

Social Welfare Increases

A double child benefit payment is expected as part of the social welfare increases coming up in Budget 2025.

However, Social Protection Minister Heather Humphreys has indicated that there will be no increases to the jobseeker’s allowance.

There have also been reports that the government is considering a €12 a week increase to the state pension.

The last budget included a €300 fuel allowance payment, €400 disability grant and a €400 lump sum Working Family Payment. Some of these are expected to return.

Infrastructure Investment

The Budget is expected to contain a package of top-up funding for infrastructural projects, making use of the proceeds of the State’s AIB shareholding, which amount to close to €2 billion.

The priority areas for infrastructure investment are water, energy and housing.

The 20pc cut to the cost of public transport will be extended for another year.

Tax cuts

Finance Minister Jack Chambers, launching his first Budget has already alluded to “tax breaks for families, workers and businesses”, following on from last year where individuals benefitted from a tax package of about €800.

However, the minister said that any one-off measures in Budget 2025 will be on a much lower scale than seen in previous years.

It is likely the package this year will be worth about €1,200 for the average middle-income earner.

USC will likely trimmed by half a per cent similar to last year.

It is also likely that Government will increase the standard rate tax band to €44,000, after it moved from €40,000 to €42,000 in the last Budget.

While the first €20,000 a worker earns will be exempt from income tax through tax credit increases.

One of the more interesting tax breaks, is that people will be able to avail of a tax break while donating to their local sporting club under new plans being considered.

Minister Chambers confirmed this month that inheritance will be lowered in his fiscal package for next year.

Childcare

Despite several childcare providers announcing that they will up their fees for this year, there aren’t many changes expected in childcare in the budget.

The focus appears to be on core funding, Deis funding and disability funding.

A 25pc cut in the average cost of childcare kicked in last month, with fees reduced by half this month.

However, it is expected that the Budget will have measure for small providers to keep them in business.

Child benefit, which is now €140 per child per month, will be increased in Budget 2025, most likely by €10.

Education

Students are in line for a further €500 cut in college fees, while more families will be able to avail of third-level education grants under budget proposals to shore up Middle Ireland voters ahead of the general election.

A permanent reduction of €500 to the student contribution fees, which currently stand at €3,000 a year is expected.

The highest grant, of €4,292, could increase by more than €500 under plans drafted by Department of Higher Education officials.

A 10pc increase in the household income threshold for grants is also on the table, which will mean families with a combined income of €110,000 will be able to apply for supports.

Tánaiste Micheál Martin confirmed there would be provisions made in the Budget for childcare as well as free school books for children of all ages, extending this measure which was brought in for Junior Infants, now to go right up to Leaving Cert.

The Usual Suspects

It is likely the price of cigarettes and tobacco will rise once again.

A tax on e-cigarettes is expected to be introduced as the Government looks to further clamp down on the popular products.

It is also expected that there will be a double payment for those who are in receipt of the fuel allowance before Christmas.