Politics

Budget 2025 will feature new cost-of-living package, says Taoiseach

Size of package that will benefit people this year has not yet been decided, Harris says

Inheritance and gift tax
Budget 2025 will feature a new cost-of-living package that will benefit householders. Illustration: Paul Scott
Jennifer Bray
Wed Aug 07 2024 - 14:07

Budget 2025 will feature a new cost-of-living package that will benefit householders in this calendar year, Taoiseach Simon Harris has indicated.

Speaking outside Government Buildings on Wednesday morning, Mr Harris said although inflation is cooling, this has not yet been felt by all households or businesses. The size of the cost-of-living package has yet to be decided, however.

“There will be a cost-of-living package this calendar year. I think it’s very important that there is one. People are still financially hurting. While we can point to many indicators that show that inflation is very significantly reducing, it’s entirely true, it doesn’t take away from the fact that it hasn’t been felt yet in homes, businesses and farms right across Ireland,” he said.

“And therefore, I do think it’s important that we look, at a time when the country is doing economically well, at what more practical measures we can take to help people in the here and now.

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“Obviously, the composition of the package, the size of it, and all of that, will be a matter for engagement across Government and will be announced on budget day on October 1st.”

It comes amid increased hope for further lump sum payments in Budget 2025 following the popularity of similar measures in the last budget.

Minister for Social Protection Heather Humphreys said last year’s once-off double child benefit has proved “extremely, extremely popular” and that the child benefit payment is a “very important” payment, in comments that could also signal a repeat of that move this year.

“I think it’s important to remember that lump-sum payments were introduced at a time when inflation was running at a very high rate and, thankfully, inflation has dropped considerably since then. However, the cost of going to the supermarket is still expensive, groceries are expensive. There’s no doubt about that. And lump sums have proved very, very popular.”

Lump-sum payments made in the last budget included a €300 fuel allowance payment, a €400 disability grant and a €400 lump sum Working Family Payment.

Separately, Mr Harris also confirmed an inquiry into the State’s handling of the Covid-19 pandemic is due to be established next month.

“I’m happy to reiterate today that it’s our intention to establish that early next month. The exact structure of it and timeline will be a matter for the chair and the panel that we have put in place. But I expect progress on that next month.”

Minister for Justice Helen McEntee also confirmed that in the next Dáil term, she intends to advance the controversial hate speech and hate crime legislation.

“I have a number of pieces of legislation that I intend to progress in the new term. The hate crime legislation is one of those, and I’ll make that clear upon the return of the Dáil in September,” she said.

Jennifer Bray

Jennifer Bray

Jennifer Bray is a Political Correspondent with The Irish Times