Larger Package of Tax Measures in Budget than Expected
Middle-income workers and families will get tax relief and childcare savings as the government targets cost-of-living pressures with an €8.65 billion package.
- On Tuesday, Finance Minister Simon Harris and Minister for Public Expenditure Jack Chambers unveiled an €8.65 billion Budget 2027 package consisting of €7 billion in new spending and €1.65 billion in tax changes.
- Aiming to remedy last year's criticism when average households were left worse off, the government designed this budget to support working families and address rising cost of living pressures.
- Income tax changes include a €2,500 increase in the standard rate cut-off to €46,500, while core social welfare rates, including the State pension, rise by €10 weekly from January 2027.
- Opposition parties strongly criticized the measures, with Sinn Féin's Pearse Doherty calling income tax changes an 'insult to workers' and Social Democrats TD Cian O'Callaghan describing the budget as 'devoid of ambition.'
- Future policy shifts include capping childcare costs at €550 monthly by September 2027 and investing €6 billion in MetroLink infrastructure through 2030, alongside permanent €150 student contribution fee reductions.
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Budget 2027 is being unveiled today in the Dáil by Tánaiste and Minister for Finance Simon Harris, alongside Minister for Public Expenditure Jack Chambers, who are set to deliver an €8.65 billion fiscal package aimed squarely at relief for Ireland's squeezed middle
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The Department of Social Protection has received a record €30.9 billion as part of Budget 2027, the headline change being a €10 increase in weekly social welfare rates for groups like pensioners, jobseekers and carers.
Budget 2027: Income tax threshold hiked to €46.5k, social welfare up €10 a week, and fuel excise decrease extended
The higher rate of income tax threshold has been increased to €46,500, social welfare payments have been hiked by €10 per week and the reduction in fuel excise extended until February in a range of measures announced by Simon Harris in his Budget 2027.
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