Over the last number of weeks, more than 1.4 million people have benefitted from the social welfare bonuses and cost of living changes announced in Budget 2025.
The cost of living package aimed to provide a more 'universal' series of benefits than in previous years, while also deploying targeted supports where they were needed.
These included popular returning measures such as the energy credits and social welfare double payments. While many were paid out in recent weeks, a long list of new measures are set to take effect in the new year. This includes everything from new grants to social welfare increases, tax changes and more.
Among the most significant changes are an increase of €12 to most weekly social welfare payments, a bump to the minimum wage and a reduction of the Universal Social Charge (USC) rate.
The full list of changes coming into effect from January are:
€12 increase in most weekly social welfare payments. There will be proportionate increases for qualified adults and people receiving a reduced rate.€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 increase by €8 to €62 for those aged 12 and over and by €4 to €50 for those under 12.
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 increase by €60 a week regardless of family size
Extend Carer's Benefit to people who are self-employed
Carer's Allowance will become a qualifying payment for Fuel Allowance, subject to meeting all criteria of the Fuel Allowance scheme, including satisfying the Fuel Allowance means test
€20 increase a month in Domiciliary Care Allowance
The amount not taken into account when you sell your home to move into care will increase to €337,500 from January 2025 for those who get a State Pension (Non-contributory), or Disability Allowance or Blind Pension
Means test disregard for Fuel Allowance extended to those aged 66 and over - €524 (single person) and €1,048 (couple) meaning more people will qualify for this support
€125 energy credit paid to all households from January 1st
Employees can get 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. This can include up to 5 non-cash benefits per year (an increase from 2 benefits per year).
The national minimum wage will increase by 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 at 23% to the 9% reduced rate
