Help to Buy set to increase to €35k + everything else we know about what is in Budget 2027

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

The finer details on Budget 2027 are currently being signed off by coalition leaders this evening, ahead of tomorrow’s announcement.

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

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. 

Advertisement

Meanwhile, inheritance tax is set to see a marginal change to the thresholds. 

As was the case last year, 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.

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. 

Discussions about changes to stamp duty for first-time buyers remain ongoing tonight.

However, the Rent Tax Credit for renters is expected to increase by €200 annually to €1,200. 

 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 for An Comisiún 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 childcare per child up to senior infants will drop to €550. 

This is expected to come into force from next September.

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 elligible 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.

More as we get it…