Budget 2025: €2 billion cost of living package expected with once-off payments before Christmas

THE BUDGET IS set to include a €2 billion cost of living package and number of once-off payments, it is understood.

These once-off social welfare payments will likely be issued before and after Christmas, which will include two double child benefit payments before Christmas along with extra payments on fuel and living alone allowances.

A €250 energy credit will also form part of the package.

Coalition leaders and senior ministers last night engaged in high-level negotiations, ahead of Tuesday’s Budget announcement.

All must be signed-off on tonight.

It’s expected that there is to be a €12 increase across all regular weekly welfare payments although some final sign off is expected around jobseeker’s benefit. 

The Taoiseach has agreed with Social Protection Minister Heather Humphreys that the jobseekers’ allowance should not increase at the same rate as other social welfare payments, saying it is a “practical” matter rather than an “ideological debate”.

“These are many good ideas, how do we best make the carpet fit the room,” Harris tod reporters yesterday. 

He agreed with his Fine Gael colleague that the allowance should not be prioritised over payments to carers, pensioners and people with disabilities given that the economy is operating at near full employment.

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Minister Humphreys said that she expects an increase in some social welfare rates, such as the fuel allowance and living alone allowance, and that a double payment of Child Benefit would be “very useful” in the run-up to Christmas.

Following an intervention by Finance Minister Jack Chambers, the Help-to-Buy scheme is likely to be extended to 2029. 

There continue to be sticking points, with ongoing discussions on the VAT rate for the hospitality sector.

Government sources state that this spend was not accounted for in the Summer Economic Statement, however with bumper surpluses, the money might be found. 

Public transport

Sources have indicated that the Green Party has pushed for and secured free public transport fares for children under nine as part of the Budget talks.

The free fares will kick in from next summer.

“This is a change that’s good for the environment but good for parents’ pockets also,” a Green Party source said.

“It will save parents money when they are travelling with their kids but will also ease congestion and pollution by encouraging people to use public transport. It’s good news all-round.”

The Green Party source said it has already used its time in Government to cut public transport fares by 20% for adults and an additional 50% for young people aged 18 to 25, while also investing in extra services.

Currently, only children under five qualify for free public transport so the change will mean that five, six, seven and eight year olds will now also benefit from free travel.

With reporting by Christina Finn

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