As households continue to grapple with the cost of filling their cars, heating their homes and putting food on the table, Budget 2027 has brought a raft of changes aimed at easing the pressure on household finances.
Junior Minister and Fine Gael TD John Cummins has defended the Government’s latest package, pointing to changes in income tax, childcare costs, housing supports and social welfare payments.
Among the measures announced are an increase in the higher income tax threshold, a €150 boost to the Rent Tax Credit, a €10 increase in core weekly welfare payments and a reduction in maximum childcare costs.
Minister Cummins said the Budget is aimed at easing everyday pressures while also investing in housing and public services.
“We are rewarding hard work so people can get ahead, not just get by, and helping with the cost of everyday life,” he said.
The €8.65 billion package includes changes to income tax, childcare, social welfare, housing supports and fuel costs, alongside increased spending across a number of government departments.
Minister Cummins, Fine Gael TD for Waterford and Minister of State for Planning and Local Government, has welcomed the measures, saying they will provide support for workers and families while increasing investment in housing and infrastructure.
What has changed?
Workers will see changes to income tax, with the point at which people begin paying the higher 40% rate increasing by €2,500, from €44,000 to €46,500.
The main personal, employee and earned income tax credits will each increase by €125, while the threshold for entering the 3% USC band will rise by €1,600 to €30,300.
The national minimum wage will also increase by 79 cent, from €14.15 to €14.94 an hour.
Families with children in childcare are among those targeted, with the maximum monthly cost set to fall from €735 to €550 for children up to senior infants.
For renters, the Rent Tax Credit will increase by €150 to €1,150 for an individual, or €2,300 for a couple.
First-time buyers will also see the maximum Help to Buy relief increase by €5,000, from €30,000 to €35,000.
Minister Cummins says the scheme has supported 1,904 home purchases or builds in Waterford to date.
The Budget also includes a €10 weekly increase in core social welfare payments.
The contributory State Pension will increase by €10 to €309.30 per week, while the Living Alone Allowance will rise by €3 to €25.
Fuel Allowance will increase by €5 to €43 per week, while a new €500 Cost of Disability payment is also being introduced for people receiving long-term disability payments.
Fuel and household costs
Changes are also being made to taxes on home heating fuels.
Carbon tax on kerosene and natural gas will be reduced to €48.50 per tonne of CO2 for the lifetime of the Government.
Minister Cummins says this will result in a saving of around €86 on a 1,000-litre fill of home heating oil this winter.
Reduced excise rates on petrol and diesel will remain in place until February 28, 2027, before being restored in four phases up to the end of June.
There will, however, be increases elsewhere.
The price of a packet of 20 cigarettes will rise by €1, while excise on e-liquid products used in vapes will increase by 20 cent per millilitre.
Housing
Housing accounts for a significant portion of the spending announced, with the Department of Housing, Local Government and Heritage receiving €11.92 billion.
Of that, €7.7 billion has been allocated to the social and starter home programme, while more than €1 billion will support the delivery of 15,000 new starter homes nationally.
More than €750 million has also been ringfenced for housing adaptations and retrofitting.
A new derelict property tax is to be introduced at a rate of 7% as part of efforts to tackle vacant and derelict properties.
Local authorities will also be given access to an additional €200 million in borrowing capacity annually.
Minister Cummins said increasing housing supply in Waterford remains a priority and described the level of funding being provided nationally as significant.
“We are allocating resources to build more homes, as well as delivering the infrastructure and public services our country needs, faster, and with less bureaucracy and better value for every euro,” he said.
Other Budget measures
Third-level students will see a permanent €150 reduction in the student contribution fee, while SUSI maintenance grants are set to increase by 4.5%.
Free contraception will be extended to people up to the age of 37, while additional funding for special education will provide for more than 2,300 additional SNAs and 1,300 teachers.
A new Savings and Investment Account is also due to launch in July 2027, with a tax-free threshold of €50,000.
Minister Cummins said the Budget was designed to support households facing cost-of-living pressures while also increasing longer-term investment.
“We are rewarding hard work so people can get ahead, not just get by, and helping with the cost of everyday life,” he said.
**Not all measures of Budget 2027 are included in this article, for further information on the Budget, click here**
