All of the cost of living changes in Budget 2025 taking effect from January 1

A host of changes are set to come into effect in the coming days as part of Budget 2025.

The budget, which was announced on October 1, has already seen certain measures such as cost of living bonuses and lump sums paid out in recent months.

However, many more measures will be implemented from January. These include payment increases, tax changes, new grants and more, reports RSVP Live.

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From January 1, the following cost-of-living changes will take effect:

A €12 increase in most weekly social welfare payments. There will be proportionate increases for qualified adults and people getting 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 December 1 2024

The income thresholds for the Working Family Payment will increase by €60 a week regardless of family size

Carer's Benefit extended 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 per 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 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 1

Employees can get some vouchers or other non-cash benefits each year without paying tax on them. From January 1 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 per cent rate of Universal Social Charge (USC) will be reduced to 3 per cent

The VAT charged for installing a heat pump will be reduced from the standard rate at 23 per cent to the 9 per cent reduced rate

The full list of taxation measures from Budget 2025, is available here, while the full list of expenditure measures can be accessed here.

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