COALITION LEADERS HAVE signed off on a €5,000 increase to the Help to Buy tax rebate for first-time buyers, as crunch talks in Government Buildings come to an end on Monday night.

The finer details on Budget 2027 were signed off by coalition leaders early on Monday night, ahead of Tuesday’s 1pm announcement.

In addition to the last-minute movement on Help to Buy, a €10 weekly increase to the State pension was also agreed.

Meanwhile, the entry point to the higher rate of income tax will increase from €44,000 to €46,500, some €500 more than initially anticipated.

On Tuesday afternoon, money ministers Jack Chambers and Simon Harris will deliver Budget 2027 to Dáil Éireann, setting out public spending and taxation for the year to come. 

Eager not to repeat the mistakes of last year’s budget – which left households worse off – the government has promised that this year’s budget will be one for workers.

Here is everything we know so far. 

Social Welfare

As mentioned, a €10 weekly increase to the State pension has been confirmed this evening, alongside a €10 increase to all other core social welfare payments. 

There will be no increase to the Children’s Allowance. However, there will be an additional €6 per week for the child support payment.

A permanent disability payment of €500 has also been agreed for the first time.

There will also be a €5 increase to the fuel allowance. 

As is customary, there will be a Christmas bonus this year for those in receipt of social welfare payments.

Income tax and Inheritance tax 

The increase to the 40% higher rate of income tax was long flagged by Harris, and it has been confirmed tonight that it will rise from €44,000 to €46,500. No change to the USC. 

Meanwhile, inheritance tax will increase across all categories. 

Currently, a child can inherit up to €400,000 from their parents in their lifetime before capital gains tax of 33% kicks in. 

Budget 2027 will see this threshold increase by €20,000 to €420,000. 

Group B, which applies to siblings, nieces, nephews and some relatives, will increase from €40,000 to €44,000, while Group C, which applies to non-relatives, will increase from €20,000 to €22,000.

As was the case last year, it is understood there will be no energy credits as part of this year’s budget. 

Housing

A last-minute win was secured by Housing Minister James Browne, with the Help to Buy tax credit set to increase from €30,000 to €35,000. It is understood, however, that the existing caps on property prices will remain the same.

The rent-a-room tax-free allowance is set to increase by €2,000 to €16,000 per year for households that rent out rooms in their home. 

Proposed changes to stamp duty for first-time buyers are understood to have been scuppered by coalition leaders and will not be going ahead. 

However, the Rent Tax Credit for renters has increased from €1,000 to €1,150 for a single person and €2,300 for a couple. 

 Other measures secured for housing include:

• An increase in funding for the Residential Tenancies Board, with a view to further strengthening the “teeth” of the agency and clamp down on “rogue” landlords. 
• A yet-to-be-disclosed increase in funding for social housing.
• Funding for the child and family homelessness action plan.
• Increased funding for the planning division of An Coimisiún Pleanála and also for local authority planning departments in an effort to speed up decision-making. 
• An expected increase in housing adaptation grants allocation for private homes for older people and people with disabilities

Childcare

As reported by The Journal and others earlier today, parents with a child in full-time childcare will save at least €1,000 a year as part of Tuesday’s budget. 

This means the maximum a family will pay per month for full-time childcare per child up to senior infants will drop from €735 to €550.

For those that are paying the higher amount now, government sources state it is a €2,000 per year saving. 

This is expected to come into force from next September.

An anti-child poverty measure was also signed off on which will see the income threshold of €34,000 increased, so that more families can avail of free childcare. 

Health

Health budget for 2027 will:

• Introduce the shingles vaccine programme for immune-compromised groups.
• Improve access to oral health and orthodontic services.
• Extend eligibility for the free contraception scheme from age 35 to age 37.

Higher education

The Department of Higher Education was one of the departments to have its budget negotiations locked in early, with the finer details done and dusted late last week. 

Here’s what we know:

• There will be a permanent €150 cut to the student contribution fee. This will be effective immediately, meaning students can claim a refund for this term in January 2027, bringing the annual cost of a university degree to €2,350.
• There will be no change to PhD stipends as part of this year’s budget. 
• An increase to the Susi grant for families with more than one child in university. For example, a family with more than one child in college who is currently getting a €500 fee reduction per child will see this increase to €750 per child.
• A new band for the Susi grant is being introduced for families with a household income between €120,000 and €150,000. Families who fall into this band and have more than one child in college will now be eligible for a €500 grant per student.
• Maintenance grants will be increased by 4.5% across every band. 
• An unplanned pregnancy support fund will also be set up for the first time. The amount of money being set aside for this has yet to be finalised.

Energy 

• Carbon tax increases paused on home heating oil and gas for the rest of the government’s term.
• Cuts in excise duty on petrol and diesel extended beyond winter
• Capital allocation of over €650 million for SEAI home and community energy upgrades, including more solar PV, new battery grants and a boiler scrappage scheme. 

Enterprise

• The minimum wage will rise by 79 cent to €14.94.
• The government agreed to a support package of more than €10 million for the pub industry.

Arts, Culture and Sports

Minister Patrick O’Donovan was reported to be at loggerheads with Chambers last week as he made his final pitch to the public expenditure minister. 

His main ask was the introduction of a culture card for 16-year-olds, but while funding has been secured to “develop” the idea, it seems unlikely that teens will actually be able to access the card this year or next.

What has got across the line: 

• Record funding for the Arts Council of over €142.5 million – this comes after the controversy-stricken organisation received no increase in funding in recent years. 
• An additional €1m in funding to develop Gaelic Games in “non-traditional” and urban areas. Hurling and Camogie are understood to be a priority focus for this funding. 

The Journal will be bringing you all the latest on budget day, from breaking news to analysis and breaking down the budget numbers so you don’t have to.