Major boost as 11 cost of living changes set to come in over the summer
WITH the cost-of-living crisis spiralling, summer to September can be a challenging time for households.
The good news is there are some free allowances and price cuts in store for July.
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Individuals and households can avail of schemes in travel, contraception and rent tax credits.
But some health insurance and life insurance policies have gone up in price.
It’s important to be aware of all the changes coming up so you can prepare for the months ahead.
Travel
A new free travel scheme is now in place that will allow free travel for thousands.
People who are medically unfit to drive for at least one year or may never be able to drive due to a medical condition can now apply for free travel.
Applications for those who meet the criteria opened on June 29.
To apply you must hold a Public Services Card and submit the new Free Travel Application form, signed and stamped by a GP confirming that you are medically unfit to drive for at least a year.
The scheme is open for those between 17 – 66 years old and there is no requirement to be on any other social welfare payment and it is not means tested.
Contraception
Ireland’s free contraception scheme has been extended to women up to the age of 35.
The scheme offers free contraception to 17-25 year olds and has gradually increased its age range since then.
Women from the age of 17 up to 35 can receive free GP visits and check-ups relating to contraception.
Carer’s Allowance
Minister for Social Welfare Heather Humphreys announced “significant” changes to the means test for the Carer’s Allowance and an increase in the Carer’s Benefit income allowance.
The income disregard for individuals or couples for those availing of the Carers Allowance has now risen.
This means thousands who do not currently qualify may be able to benefit from the payment.
It also means that those who do currently qualify may now receive a higher payment.
The income disregard for individual carers has risen to €450 per week, which is a €117.50 increase from the previous figure.
And income for couples has risen to €900 per week – an increase of €235 for a carer who is part of a couple since 2022.
Carer’s Support Grant
The Carer’s Support Grant was paid to qualifying recipients by the Department of Social Protection in June.
The boost is intended to ease the financial burden on carers by helping to pay for specific care-related expenses or cover everyday costs.
The overall cost of the grant being paid was €275 million.
Back to School Clothing and Footwear Allowance
The Back to School Clothing and Footwear Allowance (BSCFA) is available to parents who have a qualifying child met a set of other financial criteria.
Your child qualifies if they are aged between four and 17 on September 30 in the year you apply.
Dependants aged between 18 and 22 who are returning to full-time second-level education in a recognised school or college in the autumn of the year you apply also qualify.
On top of this parents must be getting a qualifying social welfare payment, or are participating in an approved employment, education or training support scheme.
Rent Tax Credit
New Finance Minister Jack Chambers and Minister for Housing Darragh O’Brien have backed a fresh increase to the Rent Tax Credit.
Ministers have hinted that the payment could be hiked again – possibly from €500 to €1,000 for a single renter and €1,000 increased to €2,000 for couples.
O’Brien said: “That’s something that we will absolutely discuss and Minister Chambers and I have already said that we would like to see a further expansion of the renters’ tax credit.
“Really importantly for renters, lots of renters want to buy.
“That’s why we’ve scaled up the First Home scheme. We’ve invested an additional €80million this year, €40million from us, €40million from the banks, because lots of renters are now buying their homes by using the First Home scheme.”
Life insurance
The price of life insurance have risen with Irish Life from July 1 with a hike of 5.3 per cent on its gross adult premium.
Across its range of plans the increase will range from 1.6 per cent and 7.9 per cent.
The price increase is for new customers and existing customers who are renewing existing policies.
It’s the fourth price increase by the company over the past 18 months and follows recent increased pricing from both Laya and VHI by about seven per cent.
Health Insurance
VHI have increased the price of one of their policies this month.
The PMI 01 10 plan which is a private medical insurance contract which provides cover for treatment in hospital as a private patient.
This includes maternity and baby health checks including scans and epidurals, fertility treatments, mental health treatment, GP visits and hospital visits as well as urgent care.
The cost has increased to €2108.83 for adults, €505.49 for children and €708.67 for young adults aged 18-20.
Prices vary for young adults each year up until the age of 25 after which the full adult rate applies.
Electricity bills
SSE Airtricty have slashed some of their prices this month.
Customers who are on the variable tariffs will see a 10 per cent reduction in electricity and gas.
They will save €150 on their electricity annual plan and €100 on their gas annual plan, dual fuel plan customers will save €250 per year.
The cost cut apply to all customers on a variable tariff automatically, but there will be no change for those on fixed-rate tariffs.
It’s the third price cut in less than a year and there is good news as it is expected other energy providers will follow suit with price cuts throughout the summer.
Mortgage rates
AIB are reducing their four-year fixed mortgage rate for customers borrowing €250,000.
The rate has been reduced by 0.25 per cent since July 3.
The new rate will also be available to AIB customers who have a mortgage balance of at least €250,000.
Switcher customers who meet the criteria and want to avail of the fixed rate will also benefit from AIB’s €3,000 Switcher cash offer.
Bank of Ireland has announced two new fixed-term deposit accounts with higher rates and flexible features.
There will be no limit on the savings balance and interest will be paid on the full balance.
The bank are offering a new two-year fixed-term deposit account with a rate of 3 per cent.
A new one-year fixed-term deposit account has been launched with a rate of 2.5 per cent.
While PTSB introduced reductions in mortgage rates, on May 29, across their fixed-rate mortgages on terms between two to seven years.
