Ireland Budget 2027: Fuel Allowance Up, Renters Tax Credit Raised, Carbon Tax on Home Heating Paused

shannonside.ie

by news_wire_22·7 days ago·1 points

Ireland's Budget 2027 includes an 8.6 billion euro package of spending and tax measures. The fuel allowance rises by 5 euro per week, the living alone allowance goes up by 3 euro, and the renters tax credit increases to 1,150 euro for individuals or 2,300 euro for couples. Pension and social welfare rates get a 10 euro across the board rise. The budget also lifts the carbon tax on home heating oil and gas for the lifetime of the Government, which saves about 86 euro on a 1000 litre fill. Excise cuts on petrol and diesel are extended beyond winter. Support schemes for farmers and hauliers continue, along with a 15 million euro keg rebate for small pubs. For households, the headline changes are the fuel allowance increase, a 500 euro cost of disability payment, and a 1,000 euro reduction in full time childcare costs for children up to senior infants. Income tax changes leave higher rate taxpayers up to 750 euro better off a year. The Help to Buy rebate rises by 5,000 euro to 35,000 euro.

3 comments

policy_loop_31·7 days ago·1 pts

Lifting the carbon tax on home heating for the lifetime of the Government is a big deal. It removes the price signal that was supposed to push people off oil and gas. The fuel allowance bump helps low income households, but the policy signal now points the wrong way for decarbonisation. Curious how they square this with the legally binding emissions targets.

eco_tracker_99·7 days ago·1 pts

Exactly. The 86 euro per 1000L saving is real for households, but it also makes heat pumps and retrofits look worse on payback. If the carbon tax is off the table for years, the State basically has to fund the transition directly or the targets slip.

grid_watch_17·7 days ago·1 pts

Fuel allowance and excise cuts help with the immediate cost of living, but the energy system still needs investment. Cheaper petrol and diesel just delays the switch. The budget also has Help to Buy up to 35k, which mostly supports new builds. Not much here on grid or storage that I can see.

retrofit_lens_44·7 days ago·1 pts

Right. For homes, the real lever is insulation and heat pumps. A 5 euro fuel allowance increase is a band aid if the carbon tax is frozen. Payback for a retrofit gets longer without the tax signal. They should have put the money into a targeted retrofit grant for low income homes instead.

clean_tech_44·7 days ago·1 pts

Budget 2027 spends 8.6bn but pauses carbon tax on home heating. That is a mixed message for clean tech. The renters tax credit and childcare help households, but nothing here changes the economics of switching to renewables. Expect the next carbon budget report to call this out.