Budget Day 2027: What's In Store

One proposal that has been put forward is to expand the Rent a Room Scheme.

The Government will announce budget 2027 this afternoon with an €8.6 billion package of new spending and tax cuts.

Income tax cuts, more affordable childcare and schemes designed to ease the burden of the cost-of-living have all been approved.

Simon Harris and Jack Chambers will go slightly above their initial plans in a spending and tax package totaling a little over €8.6 billion. 

With the cost of fuel being a massive focus the carbon tax on home heating oil and gas is to be lifted for the lifetime of the Government, excise cuts to petrol and diesel extended beyond the winter and support schemes for farmers and hauliers extended.

The carbon tax changes will be worth about €86 on a 1000L fill.   

Those paying the higher rate of tax will be up to €750 a year better off with a €2,500 rise in the tax cutoff and other changes to bands and credits.

While the cost of full time childcare for children up to senior infants is to fall by at least €1,000 a year.

There will be a €5 increase in the fuel allowance and a €3 rise in the living alone allowance, as well as €10 across the board to pensions and social welfare rates.

More people who are living alone will also become eligible for the fuel allowance.

A new €500 cost of disability payment has been approved alongside a €150 cut in the cost of student fees - and more targeted cuts of €750 for families who have more than one child in college.

The Help to Buy Scheme rebate is rising by €5,000 to €35,000.

While the renters tax credit is being increased to €1,150 or €2,300 for a couple. 

There will also be an increase in the amount people can earn through the rent a room scheme.   

While the recent budget reliables also feature - 1,000 new guards, more teachers and SNAs - and a hike in tax on cigarettes and vapes

But alcohol is left alone - and small pubs will be given access to a €15 million keg rebate scheme, to help them make ends meet.

Ministers privately acknowledge this budget won't blunt the fuel cost increases seen in recent weeks, but they believe a combination of new schemes will ease the burden - using the example of a couple earning €50,000 each with a young child in full time childcare being €2,500 euro better off next year than they were this year.

An increase to the tax rent credit is expected to be announced, but other measures in the area are more uncertain, after Fine Gael and Fianna Fail clashed on the issue.

One suggestion that’s been floated is an expansion of the rent a room scheme, meaning people could claim more tax free earnings.

However student representative body AMLE, and its President Daniel Walsh says this won’t benefit struggling students;

Saint is a student in TUS Athlone, he'd like to see housing more accessible to young people: