€400 tax slash, DOUBLE Christmas bonus, €100 voucher & once-off €300 fuel cash… How Budget 2027 could help YOUR home

BUDGET 2027 is now just hours away – and the Government is warning people to temper their expectations.

The coalition has endured a demanding process in the run-up to the upcoming budget, with heated debates over spending, cuts and measures to support families facing ongoing cost-of-living pressures.

Minister for Finance Simon Harris is set to present the €8.5 million package tomorrow, with €7 billion in additional public spending and €1.5 billion in new tax measures.

Tanaiste Harris has vowed that Budget 2027 will be one for people who “get up early in the morning”.

And it is expected that the entry rate for the higher 40 per cent rate of tax will rise from €44,000 to €46,000 in next year’s budget.

The measure would leave thousands of workers around €400 better off each year, or roughly €33 a month.

However, there is expected to be some wiggle room for the threshold to be increased further.

With changes to tax credits also expected, workers earning more than €46,000 could see their annual tax bill reduced by at least €500.

Minister Harris also hinted at an increase to the rent credit by €300.

The rent tax credit was introduced in 2022 and has since been extended and increased up to a yearly maximum of €1,000 for an individual or €2,000 for a couple who are jointly assessed for tax.

The Government has hinted that the Christmas bonus will continue in Budget 2027.

The lump sum cash boost is expected to be paid at the usual rate of 100 per cent of the weekly payment with the minimum bonus of €20.

A potential €100 “culture card” social welfare is also set to be introduced for 16 and 17-year-olds to spend on arts, cultural and music events.

And it is understood that a €300 lump-sum payment to Fuel Allowance recipients is under active consideration by the coalition.

Hard-pressed households also look set to see the cost of heating their home reduced, with a pause on home heating oil carbon tax for the lifetime of the Government on the table.

And it is understood by RTE that a similar approach is being considered for gas.

Speaking at his party’s Cairde Fail dinner yesterday, Martin said the domestic heating take of the carbon tax is “relatively low” in terms of overall revenue.

He said: “We are conscious of home heating this winter and given the nature of the crisis now, the view is that there is no real sign of an easing of the pressure on energy.

“We would hope that the decision of the G7 (to release 100million barrels of oil and diesel) may result in some reduction.

“But what really is required is the end of the conflict and a sustainable agreement between Iran and the United States, and also the end to the Russian-Ukrainian war“.

Meanwhile, the Government is discussing cutting the student contribution fee by €250 as they finalise Budget 2027 plans.

The move was proposed by Minister for Further and Higher Education James Lawless and would cost roughly €26million.

If successful, it would see a €250 cut to the student contribution fees, which currently cost €2,500, each year.

The Government is also considering a 79 cent an hour increase to the minimum wage, which is currently €14.15 per hour, from January.

But it is believed that there will be a move away from having a living wage in place by 2029, as the Government has the view that the target is too binding in uncertain economic times.

Taoiseach Martin also promised a significant childcare package.

Emer Higgins told RTE‘s The Week in Politics that a cap of €200 a month on childcare costs was the target to reach over the next four budgets, and she believed there will be progress on it in Budget 2027.

Minister for Public Expenditure Jack Chambers has stated that childcare costs are a priority for Budget 2027.

He said next year’s budget will feature measures aimed at addressing cost-of-living pressures for “low middle-income” families.

It has been reported this morning that the cost of full-time childcare for young children looks set to be cut by at least €1,000 annually per child.

But the exact figures are expected to be nailed down today.

An annual cost-of-disability payment exceeding €400 is also expected, while Government ministers are also considering a €10 increase to the State pension.

Minister for Social Protection Dara Calleary declared “working families will be at the heart of the budget”.

He said: “There will be a tax package in this Budget for working people, because absolutely working people need a break because they’re keeping our country going.

“It is their taxes that we can invest in the cost-of-disability payment for us.”

Discussions on the final budget measures will continue throughout the day.