Dáil Éireann Debate, Tuesday - 8 July 2025
330. Deputy Michael Healy-Rae asked the Minister for Finance whether the social welfare payments announced in the cost of living package in the previous year are exempt from tax; and if he will make a statement on the matter. [37304/25]
View answerBudget 2025 introduced a substantial cost of living package, details of which are outlined on page 37 of the Budget 2025 expenditure report which can be found at:
assets.gov.ie/static/documents/budget-2025-expenditure-report.pdf
Amongst other measures, this cost of living package included one-off payments to recipients of a number of social welfare payments which were paid in November 2024. These one-off payments were paid to recipients of the Carer’s Support Grant, Disability Allowance, Blind Pension, Invalidity Pension, Fuel Allowance, Living Alone Allowance, Working Family payment and Child Support Payment (previously known as Increase for a Qualified Child) as outlined at:
www.gov.ie/en/department-of-social-protection/press-releases/minister-humphreys-announces-dates-for-cost-of-living-lump-sum-payments/
The cost of living package also included a double payment in October 2024 on the same basis as the Christmas bonus to recipients of a number of long-term social welfare payments such as pensioners, carers, lone parents, people on disability payments and long-term jobseeker recipients. The package also provided for a double payment of child benefit in November 2024 and December 2024.
I am advised by Revenue that these payments were all paid based on an entitlement to an existing social welfare payment and so these amounts are treated for tax purposes in line with the tax treatment of the underlying social welfare payment. The tax treatment of the social welfare payments on which additional payments were made is outlined in the table below.
|
Name of social welfare payment |
Is it taxable? |
|
Back to Work Family Dividend |
No |
|
Blind Pension |
Yes |
|
Carer’s Allowance |
Yes |
|
Carer’s Benefit |
Yes |
|
Carer's Support Grant |
No |
|
Child Benefit |
No |
|
Child Support Payment |
Follows the taxation of underlying payment |
|
Death Benefit Pension |
Yes |
|
Deserted Wife’s Allowance |
Yes |
|
Deserted Wife’s Benefit |
Yes |
|
Disability Allowance |
No |
|
Disablement Pension |
Yes |
|
Domiciliary Care Allowance |
No |
|
Farm Assist |
No |
|
Fuel Allowance |
No |
|
Guardian’s (Contributory) Payment |
No |
|
Guardian’s Payment (Non-Contributory) |
No |
|
Illness Benefit |
Yes |
|
Invalidity Pension |
Yes |
|
Jobseeker’s Allowance |
No |
|
Jobseeker’s Benefit |
Yes |
|
Jobseeker’s Benefit (self-employed) |
Yes |
|
Jobseeker’s Benefit for claimants over 65 years of age |
Yes |
|
Jobseeker’s Transitional Payment |
No |
|
Living Alone Allowance |
Follows the taxation of underlying payment |
|
One-Parent Family Payment |
Yes |
|
Partial Capacity Benefit |
Yes |
|
State Pension (Contributory) |
Yes |
|
State Pension (Non-Contributory) |
Yes |
|
Widow’s, Widower’s and Surviving Civil Partner’s (Contributory) Pension |
Yes |
|
Widow’s, Widower’s and Surviving Civil Partner’s (Non-Contributory) Pension |
Yes |
|
Working Family Payment |
No |
