As budget negotiations begin to heat up, it is understood that “energy affordability” will be addressed in the budget in some form. The Dáil will return on September 18 ahead of budget day on October 1.
Cabinet ministers, however, will reconvene next Tuesday for their first meeting ahead of the new political term. Negotiations between ministers and Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe are expected to heat up from next week as ministers make their demands for the final budget ahead of the general election.
There are only four full weeks until Budget 2025 is unveiled following the decision to announce plans one week earlier than expected. Taoiseach Simon Harris confirmed earlier this month that there would be a cost of living package as part of Budget 2025. He vowed that any measures would be introduced in this calendar year.
The last number of cost of living packages has seen the delivery of a suite of energy credits. Last year, credits worth €450 were delivered. The Irish Mirror understands that Budget 2025 will contain some sort of measure to address “energy affordability”.
While it is still unclear what measures will be agreed, it is expected that energy credits will be examined. Whether these measures will be universal or targeted will also be examined further in the coming weeks.
Several sources noted that there is a long way to go before any Budget 2025 measures are agreed upon. Energy credits were initially introduced following a drastic increase in the cost of electricity following Russia’s invasion of Ukraine. They have formed a key part of budget packages in the last number of years.
Energy Prices Continue to Fluctuate
Recent figures from the Central Statistics Office (CSO) show that wholesale electricity prices increased by 3% in July 2024 when compared with June 2024 and were 15.3% higher than in July 2023. They have, however, decreased by 58.5% since July 2022 and have fallen by 71.4% when compared with the peak that occurred in August 2022.
Despite this, consumers will face further charges on their energy bills from October as the PSO levy increases. The levy for 2024/25 will increase to €3.23 per month, or €38.76 per year, for households.
Earlier this week, the Commission for Regulation of Utilities (CRU) announced that it had approved revenue allowances for EirGrid and ESB for 2024 which will be reflected in network charges for all customers from October 1.
This will see an average increase of €8.42 per month on a domestic customer bill.
Education and Housing for Students
Students are in line for a further €500 cut in college fees, while more families will be able to avail of third-level education grants under budget proposals to shore up Middle Ireland voters ahead of the general election.
With Budget 2025 approaching, Higher Education Minister Patrick O’Donovan has received a range of options for reducing the cost of college for students and their families.
Reducing College Fees
Central to his plans are a permanent reduction of €500 to the student contribution fees, which currently stand at €3,000 a year.
A government source said: “It is our intention to reduce the contribution fees for third level. It has been reducing by €500 per annum in recent years via a series of ‘once-off’ measures, but we want to make those reductions part of the base and formalise them at this lower level in a more sustainable way.”
Increasing Student Grants
The minister is also considering plans to significantly increase student grants and expand the eligibility criteria to let more households avail of the state support.
The highest grant, of €4,292, could increase by more than €500 under plans drafted by Department of Higher Education officials. A 10pc increase in the household income threshold for grants is also on the table, which will mean families with a combined income of €110,000 will be able to apply for supports.
Housing for Students
However, Mr O’Donovan is preparing for a budget showdown with Fianna Fáil over proposals that student accommodation should receive funding under the Government’s Housing for All plan. He believes his department should have access to some of the multi-billion-euro funding, given housing students is an important element of his portfolio.
“Apart from the windfall €100m given earlier this year, student accommodation is woefully underfunded and the minister wants a dedicated allocation to keep up with demand,” a government source said. “Students make up 5pc of the population but get zero per cent of the Housing for All budget, and that percentage gap has to be addressed in relative terms.”
Budget 2024: Cost of Living Changes Still in Effect
While we’re nearer to the announcement to Budget 2025, there are still several Budget 2024 cost of living changes that are coming into effect, especially affecting parents.
There are six cost of living changes from Budget 2024 coming into effect in the next few days. We might be close to the announcement of Budget 2025, but there are still measures from last year’s package that haven't been seen yet. Several groups of people can expect to benefit from the provisions, including students and parents.
Free Schoolbooks for Post-Primary Schools
Free schoolbooks will be provided to Junior Cycle students from September 2024.
Childcare
The National Childcare Scheme hourly subsidy will increase from €1.40 to €2.14, from September 2024.
Student Contribution
From September 2024, the income threshold to qualify for the 100% Student Contribution will increase to €55,924.
Student Grant
Maintenance grant rates will increase by €615 for all non-adjacent rates and by 10% for adjacent rates from September 2024 - a pro-rata increase will be available from January 2024. There will be a full restoration of maintenance grants under the Student Grant Scheme for postgraduate students from September 2024.
Support for Part-Time Students
From September 2024, a new pilot scheme will be available for part-time undergraduate students who are attending eligible part-time programmes, in-person or online, leading to a major award at Level 6, 7 or 8 on the National Framework of Qualifications (NFQ).
PLC Fees and Charges
The PLC participant contribution fee of €200 was abolished in 2022, however students continue to face various other charges such as student services charges, application fees, exam fees and professional registration fees. It was announced in Budget 2024 that additional funding would be provided to abolish these charges and fees from September 2024.
Child Benefit
Child Benefit will be extended to children aged 18 who are in full-time education from September 2024.
Budget 2025: A Time of Uncertainty
The government are finalising measures as they plan to announce Budget 2025 on the 1st of October, and there could be a big financial boost for third-level students. They are in line for a further €500 cut in college fees, while more families will be able to avail of third-level education grants under budget proposals. There are also proposals to increase the student grant again by €500.
A government source told the Irish Independent : “It is our intention to reduce the contribution fees for third level. It has been reducing by €500 per annum in recent years via a series of ‘once-off’ measures, but we want to make those reductions part of the base and formalise them at this lower level in a more sustainable way.”
It is clear that Budget 2025 is set to be a significant one for students and families in Ireland. The government is expected to continue its efforts to ease the cost of living, with particular emphasis on energy affordability and education. However, the exact details of these measures remain uncertain as negotiations continue. The public will be watching closely to see what the final budget delivers for the country.
