Budget 2025: Planned USC cut will boost low and middle incomes by hundreds of euro

A rift has emerged over funding being allocated to disabilities services and childcare, which has been described as 'laughable'

The universal social charge (USC) is likely to be cut by one percentage point, from 4% to 3%, as part of the cost-of-living package in Budget 2025. Stock picture: Denis Minihane 

Low- and middle-income earners are to benefit from a cut to the universal social charge, from 4% to 3%, as part of next week’s budget, which would see hundreds of euro on average per year returned to their pay packets. 

The cost-of-living package, which will be on top of the main Budget 2025 package, is now likely to stand at between €1.5bn and €1.6bn. This will include one €250 energy credit, paid to households before the end of the year. Inheritance tax is expected to see the threshold increase to €400,000.