New social welfare cash, Fuel Allowance hike & energy tax cuts in key Budget 2027 latest as fiery row breaks out in Dail

A NEW cost of disability payment, an increase to the fuel allowance, and tax cuts on energy bills are among five key cost-of-living measures being considered for Budget 2027.

It comes as Public Expenditure Minister Jack Chambers ruled out a new “targeted energy credit” for lower income households despite electricity prices skyrocketing by 77 per cent over the past year.

Energy and fuel prices dominated the Dail today as the Government comes under pressure to help hard pressed families with the cost of heating their homes in the upcoming winter.

New figures from the Central Statistics Office have revealed that wholesale electricity prices are now 77 per cent higher than they were last year with most companies jacking up their prices in recent weeks.

It comes as the ongoing war between the US and Iran continues to cause chaos for international oil trade which has pushed the price of petrol and diesel in Ireland above €2 per litre.

Sinn Fein today tabled legislation in the Dail that would force the Government to axe carbon tax on home heating oil and further cut excise taxes on petrol and diesel.

Mary Lou McDonald told the Dail that the cost of filling up a home heating oil tank is now €1,600, and questioned: “How on Earth can people be expected to pay those prices?”

The Sinn Fein leader warned the Government not to repeat their “out of touch, go slow approach” to tackling fuel prices, that she claims led to huge protests earlier this year.

Responding to these calls in the Dail, Public Expenditure Minister Jack Chambers claimed that the Government is negotiating measures to cut the price of home heating oil in the upcoming budget.

The Fianna Fail TD also revealed that the Coalition is targeting five key cost-of-living actions in the budget to help ease the pressure on households.

These include a “significant” income tax cut for workers, a new cost of disability payment and major cuts to childcare fees.

He also revealed that the Government is planning to tackle energy prices by significantly increasing the fuel allowance and reducing taxes on fuel and energy bills.

Some 400,000 people are eligible for the fuel allowance, which sees lower income households paid €38 per week from the end of September through to April.

He said: “The central priority for Government is to help with the cost of living.

“That is going to happen through a significant income tax package to reward workers right across the economy to give people a break.

“Secondly, to drive affordability across different areas of service provision including childcare, the cost of disability and using the social protection package to help those most in need and most pressurised by the increased cost of energy across our economy.

“Areas like fuel allowance are under consideration. Thirdly, we have said publicly, and indeed in our own negotiations, that we are keeping the wider taxation of fuel and energy under review.”

The debate on energy and fuel prices sparked a heated row with Deputy McDonald accusing Minister Chambers of “woeful spoofing”.

The Fianna Fail TD hit back by labelling Sinn Fein “the party of guff day in and day out, you are waffle and waffle with no solutions”.

Social Democrats TD Cian O’Callaghan urged the Public Expenditure Minister to consider his party’s proposal to roll out targeted energy credits of €400 for households that earn less than €70,000.

However, Minister Chambers ruled out a return to energy credits as he confirmed that the Government will target energy supports through an expansion of the fuel allowance.

He said: “When it comes to social protection, we have been clear – the fuel allowance and the broadened eligibility last year has brought over 400,000 households into the social protection system from a fuel allowance perspective.

“That is under consideration as a direct payment that is targeted at the lowest four income deciles in the context of Budget 2027.

“We want to use fuel allowance and other measures to help those most in needs.”

The Dail debate came just one day after Finance Minister Simon Harris suggested the State might delay the unwinding of fuel excuse cuts again.

The Fine Gael leader said that the planned reversal of fuel excise cuts which came in the wake of massive protests in April “may not be prudent”.

It came as the price of diesel has soared to above €2 in some parts of the country, and Taoiseach Micheal Martin warned the high prices could become “the new norm”.

Tainiste Harris told reporters: “That may not be the prudent thing to do now if the current elevated prices continue.

“So we need to look at that.”