Budget 2027 brings rise in cost of cigarettes, vapes and increase in child and fuel supports

Budget 2027 will “give people more of their own money”, the Government has said, setting the country on an “optimistic” path.

The €8.5bn budget was unveiled in the Dáil yesterday by Tánaiste and finance minister Simon Harris and public expenditure minister Jack Chambers.

Mr Harris said the budget “balances today’s needs with tomorrow’s musts”. New measures include a €10 social welfare increase, an annual €500 cost of disability payment, and a rise in income disregard for carer’s allowance of €150 for a single person and €300 for a couple.

The point at which workers start paying the higher rate of income tax will increase from €44,000 to €46,500, while childcare fees will be capped at €550 per month.

Excise duty on a box of cigarettes will rise by €1, and a 20c-per-ml tax on vapes will add about 40c to a single-use disposable vape.

Excise duty cuts on petrol and diesel will remain in place until the end of February, with full restoration delayed until June, while a carbon tax increase will be paused until May.

Opposition parties slammed the budget, with Sinn Féin calling it “an insult to workers”.

Budget 2027 will see record health spending, exceeding €29bn, and will include major investments in mental health, older people’s services, and community care.

Fuel allowance will rise by a weekly rate of €5 with a higher income threshold for single people over 66 of €641, while the child support payment will rise by €6. The living alone allowance will rise by €3 per week. The national minimum wage will rise by 79c to €14.94 per hour.

Capital gains tax will be reduced from 33% to 31%, in a move aimed at supporting business growth.

Rent tax credit will rise to €1,150 for single renters and to €2,300 for couples.

The tax-free threshold for earnings under the Government’s rent-a-room relief will rise to €16,000.

Help-to-Buy applicants can now claim up to €35,000 in back taxes to help fund a first home, which is up €5,000.

The new State savings scheme will allow for investments of up to €12,000 a year tax-free up to €50,000.

This was Simon Harris’s first and likely only budget – for this term at least – as he is due to replace Micheál Martin as Taoiseach in November.