Urgent Update: €1,500 Boost Excludes Key Social Welfare Payments

UPDATE: New reports confirm that two critical social welfare payments in Ireland will not qualify for the newly announced €1,500 boost. If you rely on the Housing Assistance Payment or Rent Supplement, you will be unable to claim the Rent Tax Credits, leaving many vulnerable families without essential financial support.

This urgent development impacts thousands across the nation. Both the Rental Accommodation Scheme and individuals receiving cost rental housing are also excluded from this significant tax relief. The Rent Tax Credit is designed to mitigate the income tax burden for those who pay rent, but with these exclusions, many may face increased financial strain.

The Rent Tax Credit allows eligible tenants to reduce their income tax by up to 20% of their rent payments, with a maximum credit of €1,000 for individuals and €2,000 for couples jointly assessed for tax in 2024 and 2025. This is a substantial increase from the previous limits of €750 and €1,500 set in Budget 2025, offering some relief to taxpayers.

For years 2022 and 2023, the credit was capped at €500 for individuals and €1,000 for couples. However, those utilizing housing supports, like the Housing Assistance Payment and Rent Supplement, are excluded from claiming credits even if they make additional payments.

Individuals can still claim the Rent Tax Credit for payments made for their main home, a second property for work-related purposes, or for a child under 23 enrolled in an approved course. But many may find themselves unable to access this essential support.

The implications of this exclusion are profound, particularly for low-income families who rely on these benefits for housing stability. The inability to claim rent relief could result in increased financial hardship, especially as living costs continue to rise.

Authorities are urging those affected to stay informed about their rights and potential options moving forward. As this situation develops, individuals should assess their financial plans and consider seeking advice on available supports.

For the latest developments, check back regularly. This is an evolving situation that will affect many across Ireland. Join our Dublin Live breaking news service on WhatsApp for immediate updates and exclusive content.