Social welfare claimants in line for cost of living boost with double payments on the cards
The government is set to double social welfare payments in the Budget this year
Social welfare recipients could be in for a treat this year with plans for double payments in Budget 2025. The government is mulling over the measures that will be implemented when the Budget is officially unveiled on October 1.
Potential changes for Budget 2025 include a slash in the Universal Social Charge (USC), a hike in the Rent Tax Credit and doubled one-time payments for social welfare recipients.
Double payments and bonuses for social welfare recipients have become standard in the Budget over recent years, with those who claim payments like Child Benefit, Fuel Allowance and core social welfare payments regularly receiving extra lump sums.
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Earlier this year, a one-time double week for all qualifying social welfare payments was paid in the week commencing January 29 2024, as announced in Budget 2024 the previous autumn.
Typically, payments that qualify for the Christmas Bonus will qualify for the one-time double week, and that should be the case again with this Budget. However, it can't all be good news - it's anticipated that the cost of living package will be smaller overall than last year.
Budget 2025 will feature additional public spending of €6.9bn and tax cuts of €1.4bn. The government continues to debate whether the electricity credits, previously paid in instalments of €200 and €150, will be included again.
"We're in a different place now and energy bills have come down," one minister commented. "The appetite is there to keep doubling the social welfare payments and increasing the renter's credit instead."
It's understood that the Rent Tax Credit could see an increase up to as much as €1,000, while Housing Minister Darragh O'Brien is also believed to be eager to extend tax cuts for landlords announced in last year's budget, which were linked to them staying in the rental market.
The Green Party is advocating to maintain the 20% cut to public transport fares, which was initially introduced as a cost-of-living measure and has since been extended. Fianna Fail and Fine Gael ministers are supporting a cut to USC by 0.5%, mirroring last year's budget, a move which was projected to cost around €400m this year.
Budget 2024 witnessed the USC fall for the first time in five years, dropping to 4%.
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