Key Highlights of Budget 2025 & Its Impact on the Community and Voluntary Sector
Budget 2025, announced on Tuesday, 1 October, contained a series of measures sought by members of The Wheel as reflected in our Pre-Budget 2025 Submission, Future is Community, however more remains to be done to support sector organisations and the people they serve.
1. Supporting the Sector to Deliver
Budget 2025 introduced several initiatives supporting the Community and Voluntary Sector (the sector). These include €1.6 million in supports for the Community and Voluntary sector to continue to improve the delivery of community development schemes, volunteering and philanthropy; a €1 million increase for the Community Centre Investment Fund, and a 12% increase in funding for the Charities Regulator to improve the infrastructure of regulation. Additionally, the Charitable Donations Scheme has been expanded, meaning charities will no longer have to have been established for at least two years to access the scheme, and will have a longer timeframe from the date of a donation to use the funds raised.
There were also a series of supports for the Small and Medium Enterprise (SME) sector. Notably, the Start-Up Relief for Entrepreneurs increased from €700,000 to €980,000, marking a significant boost for aspiring business owners. However, despite these improvements, some areas of importance to our members saw no improvement. The VAT Compensation Scheme, for example, was not increased, and there was no commitment toward a comprehensive strategy for the sustainability of the sector.
2. Tackling Social Isolation
Social isolation is a growing concern, and the government made strides in addressing it by increasing funding for the Social Inclusion and Community Activation Programme (SICAP) by €2.5 million. This will help bolster efforts aimed at reducing social isolation and promoting community engagement. Additionally, the Central Statistics Office received an extra €12.8 million to expand data collection on well-being, a move that could guide future policy decisions.
On the downside, there is still no dedicated Social Engagement Fund or a comprehensive Action Plan to Combat Loneliness, issues that continue to challenge vulnerable populations.
3. Building Inclusive Communities
Budget 2025 also placed a strong emphasis on building inclusive communities, with €50 million allocated to Local Authority Integration Teams (LAITs) and an additional €25 million for the Community Recognition Fund. These measures are aimed at supporting the inclusion of international protection applicants, including those from Ukraine, by local communities. Increased funding for Tusla and additional support for unaccompanied minors are also steps toward more inclusive social structures.
However, despite these advancements, there is still no movement toward recognising prior learning or conducting skills assessments for international protection applicants, which could hinder their long-term integration.
4. Promoting Civil Society
Budget 2025 provided additional funding for Public Participation Networks, located in each of the 31 Local Authority areas throughout the country, increased funding for the Shared Island Unit in the Department of An Taoiseach, and increased funding under the PEACE programme by €1.6 million. All of which are in line with our members’ priorities for Budget 2025.
5. Lifting People Out of Poverty
Core social welfare payments will see a €12 per week increase. In addition, lump sum payments will be made in late 2024 and early 2025 for people receiving Fuel Allowance, Living Alone allowance, Carer’s Support Grant, and several other social welfare payments. Additionally, the introduction of a new €450 Baby Grant for children born from December onwards will help alleviate some financial pressures on new parents.
Despite these measures, calls for benchmarking welfare payments to adequately reflect the cost of living were not addressed. Furthermore, the failure to restore funding cuts to public services in the community and voluntary sector also leaves critical gaps in social support.
6. Decent Work and Skills in the Sector
An additional allocation of €800,000 for skills development in the sector was delivered in Budget 2025. This allocation will be used to target areas of strategic leadership, management, governance, finance and communication, and include an expansion of research and partnership in skills development. We also welcome the increase of €3 million for the Community Services Programme to support community-led and deficit demand services. Investment in digital skills and AI, through the National Training Fund, is also a welcome step toward modernising the workforce.
However, the Budget fell short of addressing pay parity issues experienced by staff of sector organisations doing similar or identical work to public sector peers, particularly those working in disability, child and family, addiction and homelessness services. Pay discrepancies in these areas remain a point of contention that has yet to be resolved.
7. Creating Healthy Communities
Budget 2025 allocated an increase of €1.18 billion to deliver existing levels of service, and a further €240 million in capital expenditure for ICT projects and existing capital projects. Funding for 160 community beds, reduction of waiting lists and increased access to emergency healthcare was also included. We further welcome increased allocations in the areas of mental health and social inclusion, including community-based addiction services.
Yet, the budget did not meet the investment levels recommended by the 2016 Sláintecare Programme, nor did it allocate specific funding to uphold commitments under the UN Convention on the Rights of Persons with Disabilities (UNCRPD).
8. Accommodating Communities
A capital allocation of €3.2 billion for housing has been committed to in Budget 2025. This includes a commitment to the delivery of 10,000 new build social homes, alongside targeted support for Approved Housing Bodies (AHBs) to boost social housing delivery. In addition, the budget sets a target of 3,000 affordable and cost rental homes, includes a €23 million allocation for Traveller-specific accommodation, and €100,000 in adaptation grants for older people.
€61 million was allocated for homelessness supports and tenancy sustainment measures. This funding aims to provide comprehensive support to those at risk of losing their homes by ensuring tenant protection and promoting homelessness prevention programs, delivered in partnership with sector organisations.
However, a persistent issue is the under-delivery of social housing from previous years, which is not accounted for in the 2025 targets. While the government aims to provide housing for those in need, insufficient targets and a lack of recognition for prior underachievement in delivery will continue to pose challenges.
9. Children and Youth Participation
Building community also involves investing in the next generation. Budget 2025 includes a €7 million increase in youth work funding, along with expanded youth participation initiatives under the Participation of Children and Young People in Decision-Making Action Plan 2023-2028. Further investments include the expansion of the National Childcare Scheme by €160.7 million and additional funding for out-of-school supports. These investments aim to enhance the inclusion of young people and make childcare more accessible and affordable for families.
10. Building Sustainable Communities
Budget 2025 included increased grants from the Sustainable Energy Authority of Ireland (SEAI) to upgrade residential and community buildings. In addition, the EU Just Transition Fund and funding for circular economy programs reflect Ireland’s commitment to supporting communities in transitioning toward sustainable living and reducing carbon footprints.
Despite these steps, there is no explicit reference to co-design or collaboration with community groups, which raises concerns about the inclusion of local voices in sustainability efforts. Building sustainable communities requires not just funding but active community participation and engagement.
Need for sustainable investment
Investment in the community and voluntary sector is essential for fostering social cohesion, empowering local groups, and addressing pressing societal needs. These sectors play a critical role in providing support services, advocating for marginalised populations, and strengthening the social fabric. Building on the investments made in Budget 2025 will enable sector organisations to thrive, create sustainable solutions to local challenges, and build more resilient and inclusive communities. Moreover, such investment enhances the sector's capacity to innovate and respond to emerging issues, ultimately contributing to a healthier and more equitable society.