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Budget set to contain ‘Universal Companion Pass’

By October 2, 2024No Comments

The Cabinet will meet at Government Buildings this morning to approve Budget 2025, which was finalised by the coalition leaders last night.

Minister for Finance Jack Chambers and Minister for Public Expenditure and Reform Paschal Donohoe will announce the details in the Dáil at lunchtime.

It is expected parents will be significant beneficaries of the tax changes, new spending plans and one-off measures.

Budget 2025 contains a record €2.7 billion social protection package, including a €12 a week increase on core social welfare payments and ten lump sum payments.

For parents, there is a double child benefit in both November and December and, from January, a ‘baby boost’ special one-off payment of €420 for newborns.

New parents will also see a €15 weekly increase in maternity, paternity and parents’ benefits.

Something the coalition will not do, however, is lower the VAT rates for the hospitality sector, despite significant efforts by Minister for Enterprise Peter Burke.

His business package does include a €4,000 flat rate payment to retail and hospitality businesses, with a rates bill of less than €30,000. The VAT threshold also goes up.

Reacting to the VAT rate for the hospitality sector remaining at 13.5%, Adrian Cummins of the Restaurants Association of Ireland said on social media: “Hundreds of food-led businesses now at risk of closing.”

The main plank of the budget’s tax policy is a 1% reduction in the Universal Social Charge between income of €25,000 and €70,000 and a widening of bands.

On one-off measures, there will be two energy credits worth €125 each, deducted from electricity bills before Christmas.

Tens of thousands of pensioners aged 70 and over will soon be able to bring a family member or friend on public transport for free under a plan contained in Budget 2025.

Minister for Social Protection Heather Humphreys is introducing the measure which is being called the ‘Universal Companion Pass’.

Currently, people over 70 can apply for a companion pass provided they satisfy a medical assessment.

However, Ms Humphreys secured the coalition leaders agreement to make the pass universal.

Sources say the move is designed to tackle issues such as isolation and loneliness and keep older people active.

Article Source – Budget set to contain ‘Universal Companion Pass’ – RTE

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