The key talking points ahead of Budget 2027
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With just over a week to go before ministers Simon Harris and Jack Chambers reveal the full details of the budget, the Government has stressed that it cannot fully insulate the public from global turmoil and rising prices.
Trying to limit expectations, Taoiseach Michéal Martin said he cannot give a “cast-iron guarantee” that everyone will be better off after October's budget, stressing that resources will have to be targeted.
Having said that, the Coalition has stressed that assisting people with the cost of living, tinkering with the tax bands to help workers, bringing down the cost of childcare, and supporting those with a disability will be among the key priorities.
With the cost of diesel spiralling well beyond €2 a litre and renewed rumblings from those behind the fuel protests, the Government knows it has to make moves that are seen as significant in addressing energy prices.
The cut to excise on petrol and diesel will now be extended beyond November until early spring, at a cost of €100m a month.
A reduced rate of tax on home heating oil has also all but been announced, with Mr Chambers stating that it is an "absolute consideration" as the final budget measures are put together, backing up Mr Harris, who previously suggested that kerosene should be treated differently to petrol and diesel when it comes to taxation.
Other measures to help households include solar battery storage grants and a home boiler scrappage scheme.
Increasing the living alone allowance is a measure being strongly pushed by the Independent ministers in the Coalition.
“If you’re living alone in a house, it’s the same cost to heat it as if there are two people in the house,” minister of state Sean Canney told the last week.
It is now expected that the support could be increased by €5 per week.
Mr Canney said the Government wants to introduce support in the “here and now”, but it is also looking at longer-term measures, such as a boiler scrappage scheme and home battery storage to assist with lowering costs.
Speaking in the Dáil last week, Mr Harris singled out fuel poverty as an area that will be looked at, while Mr Chambers has said that the Coalition is looking at further changes to the fuel allowance, which previously saw extensions to the number of weeks it is paid out over the winter period.
The Government came under fire last year for failing to make any changes to the income tax bands for workers, instead prioritising the introduction of a permanent 9% Vat rate on the hospitality sector.
This year, Mr Harris has made it clear that the income tax thresholds will change. The entry point for paying the higher rate of income tax is expected to increase to at least €46,000 in Budget 2027. This would mean that middle-income earners could be between €400 and €500 a year better off due to changes to both tax bands and credits. The move would be part of a multi-budget strategy to increase the entry point to the higher rate of tax to €50,000.
On inheritance tax, it is expected that "broader adjustments" will be made, meaning the thresholds will be increased across all bands. However, the Coalition has ruled out equalising the Category A threshold, which relates to children receiving inheritances, and Category B covers inheritances received by siblings, nieces, nephews, and grandchildren.
The programme for government commits to bringing down the cost of childcare to €200 per child per month.
Children's minister Norma Foley has promised that "significant inroads" will be made in achieving this through the national childcare subsidy scheme.
It is expected that increased subsidies will be rolled out from January.
A tax break for childminders is also on the cards. People who mind children in the home can currently earn up to €15,000 gross per year tax-free, but this is now being looked at in the context of reducing costs for parents.
"I'm looking at if there is a tax relief available in my own department to support people who are childminding in the home," said Mr Harris last week. "It hasn't been increased in quite a number of years, and I'm positively disposed to that as well."
There will also be a "big push" around child poverty measures, but the exact details of this package have yet to be hammered out.
A phased rollout of a shingles vaccine is expected to be included in the upcoming budget.
It is understood that health minister Jennifer Carroll MacNeill is pushing to prioritise vaccinations, and is now confident that funding can be secured to introduce a shingles vaccine and to continue with a highly successful RSV programme for babies as part of next month's budget.
However, people who have significant monthly medication bills are unlikely to see a reduction in costs, as bringing down the threshold of the drugs payment scheme is seen as a costly measure that would not have a massive impact.
It is understood that Ms Carroll MacNeill will also be seeking money to fully staff seven surgical hubs across the country and to bring in more services, including chemotherapy, into the community.
The Government has long talked about introducing a cost of disability payment, which will now be announced on budget day.
The current weekly disability allowance comes to €254 a week, but campaigners say the extra costs of living with disabilities can amount to between €488 and €555 a week. The new payment will be aimed at bridging that gap.
Meanwhile, an increase of at least €7.50 across all social welfare payments, from pensions to those on jobseekers allowance, is anticipated. The level of increase, which could be as high as €10, will likely be one of the final items to be approved, and will be signed off on by the party leaders.
The Christmas bonus will again be given out this year.
Minister Patrick O'Donovan is pushing to offer €100 vouchers to teenagers so they can access the arts, such as visiting theatres and cinemas.
The culture pass would be given out to every 16-year-old with the intention of extending this to all 18-year-olds in the coming years.
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