All Irish households to get €125 from January 1st

Several measures from October's budget will come into effect from January.

Several measures from the October budget have already come into effect over the last three months, such as cost of living bonuses and lump sums paid out.

However, from January, a host of new measures will be implemented, including payment increases, tax changes, brand new grants and more.

Here is a full list of the cost-of-living changes kicking in on New Year's Day:

• A €15 increase in Maternity Benefit, Paternity Benefit, Adoptive Benefit and Parent's Benefit
• Weekly rates of Child Support Payment (previously known as Increase for a Qualified Child) will rise by €8 to €62 for those aged 12 and over, and by €4 to €50 for those under 12
• A Newborn Baby Grant of €280 in addition to the first month of Child Benefit (€140) for children born on or after 1 December 2024
• The income thresholds for the Working Family Payment will go up by €60 a week regardless of family size
• Carer's Benefit will be extended to self-employed people
• Carer's Allowance will become a qualifying payment for Fuel Allowance, subject to meeting all criteria of the Fuel Allowance scheme, including passing the Fuel Allowance means test
• A €20 increase a month in Domiciliary Care Allowance
• The amount not taken into account when you sell your home to move into care will rise to €337,500 from January 2025 for those who receive State Pension (Non-contributory), Disability Allowance or Blind Pension.
• The Fuel Allowance means test disregard has been extended to those aged 66 and over - €524 (single person) and €1,048 (couple), meaning more people will qualify for this support
• From January 1st, a €125 energy credit will be paid to all households.
• Employees can receive some vouchers or other non-cash benefits each year without paying tax on them. From 1 January 2025, there will be an increase in the maximum exemption, from €1,000 to €1,500. This can include up to five non-cash benefits per year (an increase from 2 benefits per year).
• The national minimum wage will see an increase of 80 cents to €13.50 per hour
• The 4% rate of Universal Social Charge (USC) will be reduced to 3%
• The VAT charged for installing a heat pump will be reduced from the standard rate at 23% to the 9% reduced rate

It's not just this January that Irish households will receive a helping hand with the rising cost of energy. Another €125 will be given next year.

Eoin Clarke of Switcher.ie, a free energy company comparison website, says that energy prices are still very high and “nowhere near” prices seen before 2022.