THOUSANDS of Irish homeowners could get €924 cash they didn’t qualify for before, €50k and €70k grants and every home in the country is set a €250 energy credit in Budget 2025.
Budget 2025 will be announced on October 1, and a total of €1.4billion in taxation measures and €6.9billion in expenditure measures will be announced.
The Government has confirmed plans to pay out energy credits again to assist homeowners, while Ministers may also move to offer thousands of people a chance to cash in on €924 annually.
Finance Minister Chambers has said that energy credits will be paid out to every household in the country this winter to help tackle high bills.
He said: “We have to finalise that but what I would say is that there is consensus in Government on having an energy credit to support people through the winter period.
“Whatever feeds into next year has to take account to the new fiscal rules that we are in and that will dictate how we decide to spread payments or whether we have one bulk payment in particular.
“What I would say is that the decisions we take on energy credits will be about protecting families and ensuring that the energy costs which are still in our economy are mitigated through the winter period.”
Here’s everything things homeowners, first-time buyers and renters should watch for in Budget 2025.
FUEL ALLOWANCE
A lowering of the age requirement for those who can receive the fuel allowance is on the cards for the budget.
The Fuel Allowance is a major payment aimed at covering the cost of heating your home for a 28-week period from September to April and will be paid out to thousands on September 23, 2024.
To qualify for the payment you must be over 70 or getting a qualifying social welfare payment and satisfy a means test.
It can be paid out for the 28 weeks in €33 payments which you receive with your other social welfare payments – or people can opt to receive the amount in two lump sums of €462.
Social Protection Minister Heather Humphreys has revealed that a lowering the qualifying age for the fuel allowance from 70 to 66 is being considered.
The fuel allowance expansion would see thousands more people being given access to the €924 annually.
Minister Humphreys said: “I have to say last year I expanded the fuel allowance to the over 70s and that was a very, very welcome measure because the one thing we don’t want is old people in their home afraid to turn on the heating.
“So this year I am looking at maybe reducing that age to those over 66 when they retire – that is something I am looking at.”
ENERGY CREDIT
Households nationwide will benefit this year from a once off €250 energy credit before Christmas.
The payment aims to help families across the country get through the winter.
Last winter, €450 was given out as an energy credit to over 2.2million households.
This year, the Government has confirmed that there will be at least one energy credit, €250 being first and likely paid before Christmas.
However it has not been decided how many instalments will be paid.
The payment is understood to be handed out to millions of people before the end of this year.
Speaking to RTE’s Morning Ireland, Tanaiste Micheal Martin said: “I think it will be this year that [the energy credit] will be paid out”.
He continued: “The cost-of-living is still very much in our minds because many families across the country are feeling the pressure because of the inflation over the last three years, particularly the beginning of the Ukraine war.
“It particularly impacted energy and energy costs is a big issue with families and indeed with businesses.
“Even though inflation has come down now to two per cent, below that, prices are at an elevated high and we’re very clear we have to look after people and do the best we can to protect people at the end of the budget.
VACANT PROPERTY REFURBISHMENT GRANT
The Vacant Property Refurbishment Grant is available to thousands of eligible homeowners in order to help with the cost of refurbishing your home.
The grant can also be used to renovate any vacant and derelict properties that were not previously listed as residential homes.
It only applies to non-residential properties who have planning permission to be used residentially and were previously used for commercial use.
It’s given to those who plan on living in the property or to those who plan on renting the property when renovations are complete.
The scheme offers a maximum of €50,000 when it comes to renovating any vacant properties or €70,000 if properties are derelict.
The scheme also offers more funds if the property is located on one of Ireland’s off-shore islands.
Or if the conversion is on a vacant traditional farmhouse.
RENT CREDIT
Budget 2025 will also provide support to those who don’t own their home and are renting.
Minister Chambers and Minister O’Brien have both backed a fresh increase to Rent Tax Credit – marking the second hike in two year.
The credit can be claimed annually by around 400,000 renters across Ireland.
The rent tax credit – first introduced at a rate of €500 back in 2022 – was increased to €750 for a single person and €1,500 for jointly assessed couples.
The cash scheme previously sees renters get money back once they pay €2,500 rent if they are single or €5,000 if in a couple, in the specific calendar year.
But Ministers have hinted that the payment could be hiked again – with a possible rise to €1,000 for single renters and a whopping €2,000 for couples.
O’Brien said: “That’s something that we will absolutely discuss and Minister Chambers and I have already said that we would like to see a further expansion of the renters’ tax credit.
“Really importantly for renters, lots of renters want to buy.
“That’s why we’ve scaled up the First Home scheme. We’ve invested an additional €80million this year, €40million from us, €40million from the banks, because lots of renters are now buying their homes by using the First Home scheme.”
HELP TO BUY SCHEME
There’s also packages in place to support those looking to buy.
Housing Minister O’Brien has pushed for the Help to Buy scheme to extend beyond 2025.
The scheme was extended to December 2025 in the previous budget, but according to The Irish Times, Housing Minister Darragh O’Brien wishes to see the programme continue after next year.
The HTB scheme helps first-time buyers purchase newly built homes or apartments as well as self-built homes.
There are limits to which properties can be involved in the scheme as it only considers properties that cost €500,000 or less.
Those whose purchases meet the required conditions receive a refund of Irish Income Tax and Deposit Interest Retention Tax paid in Ireland.
It has also been reported that Minister O’Brien will seek an increase in a cap on the price of homes eligible for the scheme for October’s Budget.
FIRST HOME SCHEME
Among the grants currently available to homeowners are the First Home Scheme – which was allocated an extra €80million this year.
The FHS is an affordable housing scheme that aims to help first time buyers be able to afford or build their first home.
It is a shared equity scheme, meaning the Government and banks involved in the mortgage pay up to 30 per cent of the cost of your home.
This gives them a stake in your home and if you want, you are able to buy back the stake at any time, but it is not a requirement.
SEVEN MAJOR MONEY CHANGES IN SEPTEMBER
THERE are seven upcoming money changes that should ease the pain on people’s pockets this month, including a €462 payment set to be paid in just weeks.
Electricity & Gas Price Cut
Electric Ireland has confirmed that it will cut its electricity and gas prices from November 1.
The country’s biggest electricity provider confirmed that both its standard unit rate of electricity and standard gas rate will be reduced by three per cent for over 1.2 million customers.
This will save households around €45 a year on their electricity and €40 a year on their gas on average.
Clothing and Footwear Allowance
The Back to School Clothing and Footwear Allowance is a payment to help families buy clothing and shoes for their children returning to school.
Children ages four to 11 are eligible for a payment rate of €160 while a child aged 12 to 22 will see a payment of €285.
Most eligible parents will have had to allowance paid out automatically – but you can apply up until September 30 on your My Welfare account if you have not received it.
Fuel Allowance
The Fuel Allowance is a major payment aimed at covering the cost of heating your home for a 28 week period from September to April and will be paid out to thousands on September 23, 2024.
To qualify for the payment you must be over 70 or getting a qualifying social welfare payment and satisfy a means test while living alone or with one of the exceptions listed here.
It can be paid out for 28 weeks in €33 payments which you will receive with your other social welfare payments but people can opt to receive the amount in two lump sums of €462.
Student Grants
Maintenance grants for students are set to increase by €615 for all non-adjacent rates and by 10 per cent for adjacent rates.
There is also changes to the postgraduate tuition fee grant which will increase by €1,000 for students in the 2023/2024 academic year.
And students who qualify for the Free Fees Scheme, will see the Student Contribution be reduced by €1,000 in the 2023/2024 academic year. Those who have already paid will receive a refund.
From this month the income threshold to qualify for the 100 per cent Student Contribution will increase to €55,924.
Hot School Meals
In July, Social Protection Minister Heather Humphreys announced an additional 168 primary schools would receive Hot School Meals in the term starting in September 2024.
This means 345,000 primary school children are now eligible to receive hot school lunches.
Childcare Scheme
The National Childcare Scheme’s subsidy, which can be used with any childcare provider who is participating and it paid directly to them, will increase from this month.
From September 2, 2024 the minimum rate for the National Childcare Scheme subsidies increased from €1.40 to €2.14 per hour.
Free Book Scheme
An extension of the Free School Books Scheme means parents and guardians of students in Junior Cycle years in post-primary schools should not be asked to buy or rent any school books in the 2024/2025 school year under the scheme.
This applies to students enrolled in secondary schools in the Free Education Scheme and will see free schoolbooks and core classroom resources provided.
It’s available across the nation for first time buyers and some others who wish to buy a new home as well as people who want to build their first home on a new site.
The scheme extends to ‘fresh start’ applicants who previously owned a home but now no longer have a financial interest because they are divorced, separated, or their relationship ended.
People also become ‘fresh start’ applicants if they have gone through personal insolvency or bankruptcy.
There are limits to the price of the home depending on where in the country it is and more information can be found on citizensinformation.ie.
