MAJOR CHANGES are set to come into effect in the New Year as thousands of people are set to benefit from the payments.
Several new cost-of-living measures are set to come into effect in a couple of days, providing a boost for many people who are struggling to make ends meet.
In October, when the new Budget 2025 was announced, the new measures were released months after, including double payments and cost-of-living bonuses.
However, people should watch out for ten major social welfare changes in the New Year.
Starting on January 1, there will be a €12 increase in most weekly social welfare payments; there will also be proportionate increases for qualified adults and people who are getting a reduced rate.
Maternity Benefit, Paternity Benefit, Adoptive Benefit and Parent’s Benefit are set to get a €15 increase in their payments.
The weekly rates of Child Support Payment, also known as Increase for a Qualified Child, is set to increase by €8 to €62 for those aged 12 and over and by €4 to €50 for those under the age of 12.
For children born on or after December 1, 2024, there will be a Newborn Baby Grant of €280 in addition to the first month of Child Benefit, which was €140.
The income thresholds for the Work Family Payment will rise by €60 a week, regardless of family size.
Extend Carer’s Benefits will also be made available for those who are self-employed.
Carer’s Allowance will qualify as Fuel Allowance if all requirements of the Fuel Allowance program are met, including passing the Fuel Allowance means test.
There will be a €20 increase a month in Domiciliary Care Allowance.
Starting in January 2025, the sum that is not considered when you sell your house to move into care will rise to €337,500 for people who receive State Pension (Non-contributory), Disability Allowance, or Blind Pension.
More people will be eligible for this assistance as the Fuel Allowance means test disregard was extended to those 66 and older, and it is now €524 for single people and €1,048 for couples.
NEW MEASURES COMING INTO EFFECT
As social welfare changes are set to come into effect from January 1, other measures are also being introduced simultaneously.
Employees are exempt from paying taxes on certain vouchers and other non-cash rewards each year. The maximum exemption will be raised from €1,000 to €1,500 on January 1, 2025.
Up to five non-cash benefits may be included annually, increased from the previous cap of two.
The national minimum wage will increase by 80 cents, increasing from €12.70 to €13.50 per hour.
The Universal Social Charge, known as USC, will reduce the rate to three per cent from four per cent.
The VAT rate that is normally levied for installing a heat pump will be lowered from 23 per cent to nine per cent.
A €125 energy credit will be paid to all households from January 1.
