Rising cost of living still 'primary concern' for people heading into Budget 2025

The Government is due to announce Budget 2025 on Tuesday, including a €1.4bn tax package. 

Ahead of the budget on Tuesday, the increasing cost of living is the top financial concern for people, while many are looking for cuts to income tax or increases to the State pension in order to help make ends meet, a new survey has found.

The survey, conducted by Capital Credit Union on 3,700 of its members, found that 55% of people cited the rising cost of living as their “primary concern” regarding their personal finances —more than double the 22% who listed pension or retirement security, which came in second place. Housing affordability was cited by 14% of people overall but for younger cohorts it was a much bigger concern, with 47% of people in their 20s saying it was their primary concern, as did 26% of people in their 30s.

Chief executive of Capital Credit Union Pat Byrne said the survey result highlights the “financial pressure many people are feeling right now”.

“For many households the day-to-day reality still feels tough,” he said. 

While overall inflation is decreasing, core inflation remains somewhat elevated, reflecting broader cost pressures in areas like housing and services.

“The increased cost of living has really cut into people’s disposable income, and people are looking to the Government for budget measures that reflect this reality.”

The survey also found that 36% would like to see income tax cuts announced in tomorrow’s budget, while 23% would like to see increases to pensions and other state benefits. A further 16% would like to see a cut to Vat on essential goods and 11% want an increase in tax credits.

A reduction in Vat on essential goods is a widely-supported measure across all age groups, with 20% of people in their 20s, 60s, and 80s believing it should be a top priority in the budget.

Mr Byrne said this is not just about short-term relief and there is a “clear concern about longer-term financial security”, particularly in terms of retirement planning.

“With Budget 2025 approaching, the Government has a real opportunity to address these concerns,” he said.

Capital Credit Union has 50,000 Dublin members.