Budget 2027 unlikely to see return of energy credits, says Taoiseach
The Irish government has indicated that energy credits are unlikely to return in the 2027 budget, prioritizing long-term investments like childcare over one-off payments. Ministers also cautioned that income tax cuts will be modest as they balance cost-of-living pressures with fiscal capacity.
Why it matters
This highlights the difficult fiscal trade-offs governments face when managing inflation and public expectations for tax relief versus social service funding.
The return of energy credits is unlikely when the Government delivers its second budget next month and changes to income tax are likely to only have a “modest” impact on workers, senior Government members have said.
Speaking in Tullamore, Co Offaly at the Fianna Fáil think-in, Taoiseach Micheál Martin said he did not want to completely rule out the return of some one-off payments in the budget to help with the cost of living.
However, he said any such measures would reduce the capacity of the Government to fund other areas, citing childcare and the cost of disability.
“We want to reduce the cost of childcare. The more you put into one-off payments, the less you have to reduce childcare costs,” he said.
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