As Budget 2025 looms, difficult decisions about where to allocate resources and how to address the needs of a diverse population. Multiple proposals are on the table, from increasing social welfare benefits to reforming the tax system. But with finite resources, what should be the priority in this year’s budget? What Should Be the Priority in Budget 2025?
Here’s a breakdown of the most discussed proposals and what impact they could have on different groups.
Increase in Child Allowance
Child poverty remains a critical issue in Ireland, with reports estimating that around 230,000 children are living in material deprivation. Increasing the Child Allowance could provide immediate relief to low- and middle-income families, helping to cover essential costs such as clothing, food, and education. Advocates argue that boosting Child Benefit is one of the most direct ways to reduce childhood poverty and support parents, particularly as the cost of living continues to rise. While the government has resisted calls for means-testing Child Benefit, an increase in the universal payment could be a widely supported measure.
Increase in Social Welfare for the Unemployed
Ireland’s social welfare system is a lifeline for many, particularly in times of economic uncertainty. Calls to increase unemployment benefits are driven by concerns that the current rates don’t adequately cover living costs, especially in areas with high rent and living expenses. An increase in unemployment benefits could offer vulnerable populations more financial stability and ensure that jobseekers are not left behind in the economic recovery.
Increase in Fuel Allowance
With energy prices fluctuating and concerns about energy poverty, an increase in the Fuel Allowance could help protect vulnerable households, particularly the elderly and low-income families. Fuel costs are a significant portion of household expenses, and additional support could help offset the burden, especially as winter approaches. For many, this is not just a comfort issue but a matter of health and well-being.
More Help-to-Buy Home Schemes
Ireland’s housing crisis remains a central issue, with many struggling to get on the property ladder. Expanding the Help-to-Buy scheme could provide much-needed assistance to first-time buyers, helping them secure homes in a challenging market. While critics argue that these schemes can drive up house prices, supporters believe that increasing access to housing is essential for long-term economic stability.
Cuts to USC (Universal Social Charge)
The Universal Social Charge (USC) has been a controversial tax since its introduction in 2011. Many workers are calling for cuts to the USC to reduce the tax burden, particularly for middle-income earners who feel squeezed by current rates. Cutting the USC could boost disposable income and stimulate spending, though it would reduce government revenue that supports public services.
Tax Bracket Changes
Tax reform, including changes to income tax brackets, is another area that could benefit a large portion of the population. Adjusting the thresholds at which higher tax rates apply could reduce the tax burden for middle and lower-income earners, helping them retain more of their earnings. This would be especially beneficial for those on the cusp of higher tax brackets, who often see steep tax hikes on marginal earnings.
Other Priorities
Other priorities for Budget 2025 could include increasing funding for healthcare, improving public transportation, or enhancing education and childcare support. Each of these sectors faces its own set of challenges, and balancing these competing needs will be a key task for the Government.
Conclusion
Budget 2025 offers a crucial opportunity for the Government to address pressing issues, from rising living costs to child poverty and housing affordability.
Whether it’s boosting social welfare, cutting taxes, or expanding housing schemes, the priority should be ensuring that all citizens benefit from a fair and sustainable budget.
What Should Be the Priority in Budget 2025?