Donohoe: Budget would be 'unaffordable' if we tried to help everyone

Finance Minister Michael McGrath said people will 'gradually' feel the benefits of one-off payments such as the three €150 electricity credits and double child benefit payments

(Left to right) Paschal Donohoe and Michael McGrath outside RTÉ studios today. Photo: Gareth Chaney/ Collins Photos

A budget that addresses the needs of everyone would be “unaffordable”, Public Expenditure Minister Paschal Donohoe has said.

Speaking to reporters in Montrose, Mr Donohoe said that he understands the argument for more supports made by those who “are in real need”.

“Every single budget we do, you always get the response back from those who are in real need and have real difficulty that they need more and they want more,” Mr Donohoe said.

“I can understand that. I can understand why that case is made but if any budget is ever offered to the country that makes progress on every need entirely, that budget would ultimately be unaffordable for the country and we will end up with difficulty and hardship growing even more in the future.

“We don't want that to happen. What we've tried to do is to get the balance right, between helping today and making sure we can continue to help in the future.”

Finance Minister Michael McGrath said that with one-off payments, including three €150 electricity credits and double child benefit payments, people will “gradually” feel the benefits of the budget.

“If you look at the way we are phasing a whole range of different supports, and different benefits that we are providing, then people will gradually feel the benefit over time,” Mr McGrath said.

“We now have to implement the budget and there’s a lot of work involved in that and I think that is when it becomes real for many people, is when they actually feel the benefit and that would be in the coming weeks and the coming months.”

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On Help-to-Buy, Mr McGrath said that he would not be considering changes to the scheme to allow first-time buyers to purchase second-hand homes.

“Help-to-buy is there to help bridge the affordability gap for any prospective homebuyers, but it's also there to stimulate supply and to provide certainty to those who are building homes, that there will be a support there for the people who want to buy the homes that they're building,” Mr McGrath said.

“I will be looking at the detail of the scheme across next year to consider if any changes are warranted for 2025 but those changes will not involve extending Help-to-Buy to the second-hand market.”

Mr McGrath cited that doing so would be “potentially inflationary” to second-hand home prices.