Ireland Budget 2027: €10 Pension Increase and €35,000 Help-to-Buy Support Among Key Measures
Dublin: Ireland’s Budget 2027 will be presented to the Dáil today by Tánaiste and Minister for Finance Simon Harris, with measures on housing, social welfare, taxation, childcare and skills expected to feature prominently.
Taoiseach Micheál Martin, Tánaiste Simon Harris, Minister for Public Expenditure Jack Chambers and Independent Minister Seán Canney met ahead of the Budget to finalise the package.
Coalition leaders have agreed to increase the state pension and other core weekly social welfare payments by €10. Defence spending is also set to rise by 10.5 per cent.
The government is also expected to allocate €150 million over three years to the National Training Fund, supporting reskilling and upskilling as workplaces adapt to developments in artificial intelligence.
Help-to-Buy support to increase to €35,000
One of the key housing measures will be an increase in the amount available to first-time buyers under the Help-to-Buy scheme.
The maximum support is set to rise by €5,000, from €30,000 to €35,000. The scheme provides a tax refund of up to 10 per cent of the purchase price of a qualifying new-build or self-build home, subject to the maximum amount available.
The scheme was introduced to help first-time buyers raise the deposit required to purchase their first home.
Senior government sources have said the increase is intended to improve the prospects of young people and working couples seeking to get onto the property ladder, particularly at a time when saving for a deposit remains a major barrier to home ownership.
There had been pressure from the Fianna Fáil side of the coalition to exempt first-time buyers from stamp duty. However, that proposal was resisted by Finance Minister Simon Harris and did not form part of the agreed housing package.
Rent-a-room scheme
The budget is also expected to address the rent-a-room scheme.
Homeowners can currently earn up to €14,000 a year tax-free by renting out a room in their home. The government has been considering increasing this threshold by a further €2,000.
Rent tax credit to increase
The tax credit available to renters is also expected to increase.
The current credit is €1,000 for an individual and €2,000 for a jointly assessed couple. The proposed increase is €150 for single renters and €300 for couples, bringing the respective credits to €1,150 and €2,300.
Culture Card for young people
The Budget is also expected to include funding for a Culture Card aimed at young people, allowing them to spend money at participating arts, cultural and music venues.
The proposal had faced uncertainty following discussions between Minister for Public Expenditure Jack Chambers and Minister for Arts, Media and Culture Patrick O’Donovan over departmental funding.
However, a spokesperson for Minister O’Donovan confirmed that funding for the initiative had been secured and that work would continue on developing the scheme.
The Culture Card has been suggested as a €100 voucher for 16-year-olds, although the final value and eligibility criteria have not yet been determined. The government hopes the scheme could be rolled out by the end of next year.
Carer’s Allowance income limit set to rise
The weekly income disregard for people receiving Carer’s Allowance is also expected to increase.
At present, the income disregard is €1,000 for an individual and €2,000 for a couple’s combined household income. A further increase would allow carers to earn more while retaining access to the payment.
Government sources have indicated that the move would maintain momentum towards the longer-term commitment to abolish the means test for Carer’s Allowance.
Personal income tax package
A personal income tax package is also expected in the budget, with the government aiming to leave the average worker approximately €400 better off annually.
Irish Samachar English News