Budget: Social welfare rates to increase by €12 per week

Coalition leaders have agreed a €2.7bn social protection package for Budget 2025, described as the largest in the history of the State.

It is understood that social welfare core rates will increase by €12 per week across the board.

Minister for Social Protection Heather Humphreys had wanted a €15 increase and pensions and carers to be prioritised over jobseekers.

It is understood additional funding will be provided to Ms Humphreys' department to cover the increase in jobseekers’ payments.

Also included in the package tonight: the expansion of the fuel allowance for people over 66; an increase in the Carer’s Support Grant to €2000; Carer’s Benefit for the self-employed; a €200 Living Alone lump sum and a range of cost-of-living payments for carers and pensioners between now and Christmas.

Meanwhile, a Green Party proposal for an additional payment for each newborn children has been passed by the coalition leaders.

Parents currently receive €140 a month in child benefit.

What is termed the "baby boost" payment will now mean a special one-off payment of €420 paid out following the birth of a newborn (this comprises of an existing €140 plus an additional €280).

The new payment will kick in from 1 January on a permanent basis.

The Green Party leader and Minister for Children Roderic O’Gorman had prioritised this payment, arguing parents also face significant expenses even though he has overseen an average cut of 50% in childcare fees over the last two years.

Meanwhile, there will be no reduction of the 13.5% VAT rate for the hospitality and retail sector.

Adrian Cummins of the Restaurants Association of Ireland said on social media: "Hundreds of food led businesses now at risk of closing."

Minister for Enterprise Peter Burke pushed for a reduction to 9% but this did not secure the support of the Coalition leaders.

Minister for Justice Helen McEntee is understood to have secured increased funding to hire approximately 400 new staff in the International Protection Office and invest in digitalisation to speed up decision making for those seeking international protection.

This will enable the IPO to process over 25,000 applications next year, compared to the over 14,000 that will be processed this year.

It is expected that faster processing will mean that people who have a right to international protection will get it much faster, while those who are unsuccessful will be required to leave the jurisdiction faster.

Additional investment will also be targeted at stronger border security and removals of unsuccessful IP applicants, including a new charter plane service.

There will also be investment in more gardaí, more prison spaces, speeding up the courts system and eradicating domestic, sexual and gender-based violence.

Free HRT products to be rolled out as part of Budget

It is also understood Minister for Health Stephen Donnelly will roll-out free hormone replacement therapy products, used by some women to relieve symptoms of menopause, as part of Budget 2025.

The move is part of a €35 million women's healthcare package and could save hundreds of thousands of women, who've been prescribed HRT, between €360 and €840 a year.

The Government had already removed VAT from HRT products, but now a free scheme will be introduced next year in which the State funds the full cost to patients of medicines, patches and devices.

Mr Donnelly has viewed improving menopause care as a priority since the publication of the first Women's Health Action Plan.

Since then six specialist menopause clinics have been opened for women who have complex experiences of menopause. Their opening hours are due to be extended.

Minister Donnelly is also expected to announce that €30m funding for new medicines will be included in Budget 2025.

He will say that 187 new medicines to treat patients have been delivered during the lifetime of this Government.

The medicines budget now accounts for about one in every eight euro of health expenditure - and has doubled in the decade from 2012 to 2022.

The HSE is shortly expected to launch its 'online application tracker' to enable patients, their advocacy groups and industry to see in real-time the progress of the application process for funding for novel medicines.

Budget 2025: Here's what we know so far

Record funding negotiated for Arts Council

Minister for Arts and Media Catherine Martin is understood to have negotiated record funding for the Arts Council of €140m next year, and additional funding for Culture Ireland.

She has also ensured the continuation of the Basic Income for Artists scheme, with €35m now ringfenced for all of 2025.

The three-year scheme, which provides a €325 weekly payment to some 2,000 artists, was due to end next August.

The tourism budget is to be expanded to attract more visitors to the regions, into the country during off-peak seasons, and attract business events.

A tourism marketing funding of €61m has been provided, as well as a capital spend allocation of €36m for Fáilte Ireland.

The overall 2025 allocation for sport is over €230m, which marks a 10% increase in funding from 2024.

Additional funding will go towards continued activity in Sport Ireland to build on the success of the Olympics and Paralympics in 2024 as well as funding for the FAI to support inclusion initiatives.

€3 billion from sell-off of AIB shares to support infrastructure

Coalition leaders are reported to be close to agreement on how to use the €3 billion raised through the sell-off of more shares in Allied Irish Banks.

The main focus is on supporting infrastructure.

It is expected that €1.25 billion will be allocated to house building via the Land Development Agency.

It is believed €1 billion will be allocated to infrastructure for Irish Water and a further €750 million deployed to upgrade the electricity grid.

Additional reporting Mary Regan, Mícheál Lehane