Budget 2027 Highlights

Following today’s Budget, I’ve tried to summarise some of the key points for your information. The total funding of €125bn will provide more funding next year for schools, hospitals and many other public services which will benefit most people. The budget measures also include changes to individual tax rates and welfare payments. These changes will benefit different groups in different ways, so if you have any queries, please do not hesitate to get in touch. My office can be contacted via email at paul.mcauliffe@oireachtas.ie or via phone at 01-481-9332.

Rewarding Work

•The 2% USC band will increase by €1,600, rising to €30,300.

•The Personal Tax Credit will increase by €125.

•The PAYE Tax Credit will increase by €125.

•Home carer tax credit will increase by €100.

•Increasing 20% tax band from €44,000 to €46,500 meaning you will only pay 40% tax on earnings above €46,500.

•The combined measures will result in up to €750 back in the average workers' pocket.

Older People

•Pension will increase by €10 per week.

•The means test limit for the fuel allowance for single people will increase from €534 to €641 per week for people aged over 66, making it fairer for older people living alone.

•Increase of €5 per week in the Fuel Allowance, bringing it to €43 per week or over €1,200 in 2027.

•The Living Alone Allowance will increase by €156 per year.

•The state pension will exceed €300 per week for the first time, increasing to €309.30.

•Extend the duration of payment after death for pensioners who lose their partner, from six weeks to ten weeks.

Transport and Energy Costs

Existing reductions in excise duty on petrol and diesel extended until May 2027.

Lowering the carbon tax on natural gas & heating oil until the end of 2029.

€6bn for Metrolink.

Extension of VRT relief for electric vehicles for another two years.

Health, Disability and Carer Supports

An interim Cost of Disability Payment of €500 will be introduced in January 2027 to almost 240,000 people. This will be followed by a process with stakeholders to develop a more permanent payment from 2028.

Carers Allowance income disregards increased by €150 per week for a single carer and €300 per week for a couple. This means a couple on over €126,000 will now be able to get a full Carers payment without being in any way affected by the means test. They will in fact be able to earn over €155,000 and still receive a partial payment.

A further 489 residential care packages will be provided along with 1,500 new day service places.

There will be 930 additional staff to strengthen disability services and improve access to supports.

Expansion of the Free Contraception Scheme to people aged up to 37.

Shingles Vaccine – a phased programme for immunocompromised people and those aged 65+.

Rare diseases – the introduction of a pilot scheme for earlier access to new medicines for people with rare diseases.

33,000 additional hours of free counselling for community based mental health services.

Families

Maximum childcare fees will be €550 per month down from €735 from September 2027. A saving of €2,220 per child per year and keeping us on the path towards achieving our Programme for Government commitment on childcare costs.

Families earning under €38,500 now qualify for free childcare.

Home based childcare tax relief increased to €20,000.

Social Welfare Core Payments

Increase of €5 per week in the Fuel Allowance, bringing it to €43 per week or over €1,200 in 2027.

An additional payment will be paid the week of December 7th to almost 1.4 million people.

€10 per week increase on all main social welfare payments.

Fuel Allowance income threshold increases for a single pensioner from €534 to €641.

€6 per week increase on the Child Support Payment for children under and over 12 years of age.

Reduce the minimum employed hours per week from 15 to 8 to qualify for the Wage Subsidy Scheme for those with a disability.

Renters and Homeowners

Renters tax credit increased by €150 to €1,150 for a single person and by €300 to €2,300 for a couple.

Rent a room relief increased to €16,000.

Help to Buy relief increased from €30,000 to €35,000.

Personal Finance

A new Investment Account with a tax-free threshold of €50,000, with a max contribution of €12,000 per annum and no minimum contribution, from July 2027.

Increases the Capital Acquisition Tax (e.g. inheritance thresholds): to a child, from €400k to €420k; to siblings and extended family, from €40 to €44k; and to others: from €20k to €22k.

Capital Gains Tax standard rate decreased from 33% to 31%.

Home Upgrades

For homeowners switching to a heat pump - with the existing grants, homeowners can receive up to €14,500 towards a heat pump.

A new €600 stand-alone battery grant with no means test.

Solar panels and battery storage now included in the free insulation scheme (Warmer Homes Scheme).

Previous Warmer Homes Scheme participants may also qualify for the new solar and battery grants.

Housing and Infrastructure

Help to Buy relief increased from €30,000 to €35,000.

€5.6 billion in capital funding.

Over €1 billion will be allocated to deliver starter homes through a range of affordability supports, alongside the Help to Buy Initiative.

Over €360m for local authority retrofitting and adaptation grants for disabled and older people.

Education

2,339 more SNAs bringing the total number to 28,000.

1,353 teachers for special classes, special schools and mainstream settings.

An increase in school capitation rates by €68 per primary pupil and €40 per post-primary pupil, helping schools meet rising costs.

An additional €2m for the DEIS Plus programme.

An additional €3m for Home School Community Liaison coordinators.

Expansion of AIM for children with disabilities under 3 years old.

Third Level Students

A cut to the Student Contribution Fee of €150.

A new student contribution fee grant for families with more than one child attending higher education.

An increase in the SUSI maintenance grant from January.

A €446m investment in apprenticeships

1,420 health and social care student places.

Crime and Security

Up to 1,000 additional Gardaí, bringing the force to 15,000.

Up to 850 new Defence Force Members.

€11.5m of additional funding for Youth Justice initiatives.

An additional €5.3m for Domestic, Sexual and Gender Based Violence.

Sports and Culture

€4m in funding to the League of Ireland football academies.

A €1m increase in funding to the Gaelic Players Association (GPA).

€1m in ring-fenced funding for the Hurling and Camogie Academy initiative.

Further supports for artists over the next year.