Budget 2027 to introduce cost of disability payment

Micheál Martin and Dara Calleary are pushing for the new benefit but it is likely to be phased in gradually

It is estimated that people with disabilities may have extra expenses of up to €15,000 a year. Picture: iStock 

A cost of disability payment is on track to be introduced in Budget 2027 but is likely to be phased in on a gradual basis.

The payment is understood to be a priority for both Taoiseach Micheál Martin and social protection minister Dara Calleary, with work ongoing across several Government departments.

However, there is an acknowledgement that a tight budget package may limit what can be done.

It is estimated that people with disabilities may have extra expenses of up to €15,000 a year. 

A ‘Cost of disability strategic focus network summit’ was held by the Government in May following a public consultation.

The Irish Examiner understands it is a priority to introduce some sort of cost of disability payment as part of the October 6 budget, but there is an acceptance that “not everything can be done in one budget”.

However, sources said something “meaningful” can be done this year, with a “pathway” then set out for an expanded scheme.

Suggestions contained in the public consultation and shared at the forum included the introduction of a tax credit for disabled people, as well as additional access to adequate public transport to enable disabled people to get to work more easily. 

It is understood proposals are being discussed with the Department of Finance and the Department of Transport, respectively.

However, several senior Government sources conceded it may not be possible to achieve everything in Budget 2027.

Government 'committed to carbon tax' 

It comes amid mixed messages from Government leaders about the prospect of further delaying carbon tax increases. Speaking on his way into Cabinet yesterday, Tánaiste Simon Harris said he and the Government “support the carbon tax” and are “committed to the carbon tax”.

“The trajectory for the carbon tax was set before there was a war in Ukraine, before president Trump and Iran were involved in this conflict,” he said. “In other words, the trajectory for the carbon tax was set before there were two massive global shocks. I think that merits, at least, reflection.”

Mr Harris said all decisions “have implications” and costs, as he insisted there is “no tension” between Fianna Fáil and Fine Gael on the issue.

“The money that we generate from the carbon tax goes into really good initiatives around retrofitting, really good initiatives around the fuel allowance. All of this needs to be looked at in the round. But I’m a full supporter of the carbon tax.

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“I think we need to move beyond the ‘Are you in favour of the carbon tax or not?’ to ‘How do you have a carbon tax that is sustainable and durable in the middle of the largest energy crisis that, quite possibly, the world has ever seen’.”

Taoiseach Micheál Martin said the “reality is that the revenues from the carbon tax trajectory, as provided from legislation, have been baked into” budgets and schemes, including retrofitting and farming schemes.

“All that has to be worked out if there was to be consideration of that,” he said.

“All of those things fall for discussion. But those are the issues that have to be reconciled.”

• Louise Burne, Political Correspondent