Minister for Finance Jack Chambers has today announced Budget 2025, the current coalition’s final budget before the next general election.
Taoiseach Simon Harris stressed that government has “chosen to not spend billions of euro we have [in order] to protect our future”, yet recognised that “people are still financially hurting” amidst the current cost of living crisis.
With Harris having recently left the Department of Higher Education, and Chambers being a relatively recent graduate from Trinity, there are some substantial aspects of this budget that pertain specifically to students.
Student fees cut
The student contribution charge is to be reduced in a once-off cut of €1,000, bringing undergraduate home and EU fees down to €2,000 this year. It’s not within government powers to change international fees.
This cut has become a reoccurring act in recent years, with the last two budgets also providing a €1,000 reduction respectively.
If you have already paid your Student Contribution in full this year, a refund will be offered to you through credit on your TCD account or via bank transfer refund for final year students.
The SUSI Grant has also been made more accessible to students on the basis of increasing the maximum total household income criteria needed to avail of funds.
Minimum wage raised
The legal minimum wage per hour for workers over the age of 20 has increased by 80 cents, from the previous €12.70 to €13.50 now. This increase will come into effect from January 1 2025.
Minimum wage for workers aged 19 is set at a fixed rate of 90% of the adult minimum wage, bringing this up to €12.15 an hour, an increase of 72c. For 18 year olds it’s now €10.80, at an 80% fixed rate, an increase of 64c.
The Low Pay Commission, an “independent statutory body which makes recommendations to the Minister for Enterprise” on issues such as minimum wage, advised an hourly rate of €14.50 per hour for 20s.
Government has also reduced the Universal Social Charge from 4% to 3%, meaning that full-time minimum wage workers will see an increase in their annual take home pay of circa €1,400.
Rent tax credit increase
The rent tax credit has increased from €750 to €1,000, a second consecutive annual increase from the credit’s original €500 figure in Budget 2023.
Both students and family members who can prove they pay a student’s rent can avail of this credit at the end of the financial year.
Last year the credit was made available to students in digs, student accommodation or a private rented accommodation registered with the Residential Tenancies Board.
Students availing of a housing support, such as the Housing Assistance Payment or Rent Supplement Payment, are not entitled to this tax credit.
Student living affected
Government has introduced a tax of 50 cent excise duty per millilitre of e-liquid present in electronic cigarettes or vaping products. The tax is expected to be implemented in mid-2025.
The standard price of a 600-puff Lost Mary looks set to increase from €8 to at least €9.23.
This move comes after Minister for Health Stephen Donnelly began drafting legislation to regulate vapes in Ireland earlier this month.
His legislation seeks to implement rules on the marketing and distribution of vapes to young people, such as colours on packaging and names of flavours.
There will be no increase in excise duty to alcohol.
Funding given to the Department of Further and Higher Education, Research, Innovation and Science
The Department will receive a total of €4.5 billion from Budget 2025, which Minister Chambers described as “a demonstration of our commitment to investing for our future”.
Minister for Higher Education Patrick O’Donovan said part of this funding is intended to provide an increase in certain PhD stipends, however details of these policies are yet to be announced.
