Carbon tax pause on home heating oil and a 'significant' childcare package in budget 2027, says Martin

THIS YEAR’S BUDGET has to be about “easing the pressure on families and households”, Taoiseach Micheál Martin said this evening.

Speaking to the media ahead of his speech at the annual Fianna Fáil Cairde Fáil event in Dublin, Martin indicated there will be no further increases on carbon tax on home heating oil and kerosene. 

He also confirmed there will be a Christmas bonus payment for those in receipt of social welfare payments. 

Asked about the return of energy credits, the Taoiseach failed to rule them out, stating there has been no discussion on that matter yet in the budget talks. 

Martin said the “cost of living is a key issue” and there will be a variety of items in this year’s budget such as taxation measures, income tax changes, improvements in the disability payment and a “significant” package for childcare.

He said the social protection budget will particularly target pensioners.

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Carbon tax 

Asked about there being no further increases in the carbon tax on home heating oil over the lifetime of the government, the Taoiseach confirmed that is the “direction of travel”. 

“Yes, we are conscious of home heating this winter, and given the nature of the crisis now, the view is that there is no real sign of an easing of the pressure on energy,” he told reporters. 

He went on to dismiss suggestions that there will be any cuts in spending, stating that there will be a growth in expenditure of 6%. 

In terms of a public pay agreement, he said it will be “significant and substantial.” In his speech to party members this evening, he said an extended dispute in the public services “will benefit no one.”

“Negotiation is the best and only route forward,” said Martin.

When it comes to housing, he again reaffirmed there will be an increase in the rent tax credit, stating that it has given some ease to renters. 

However, while the Taoiseach was pressed further on what might be announced in Tuesday’s budget, he also gave a warning about “broader clouds on the horizon”. 

There is a serious international energy crisis, he said, adding that the government hopes it will not affect supply over the next 12 months. Addressing the ballooning corporation tax take, he said it is a “vulnerability”. 

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Asked by The Journal if he is trying to dampen peoples’ expectations of this year’s budget, he said he was not, but the government has to be conscious of the realities. 

In his speech, the Taoiseach took aim at the alternative budgets of the opposition, stating that “their approach is to just keep shouting ‘more’ and ignoring all of the consequences”.

“They are yet again cynically pretending that there are no hard choices and that there are a mythical small group of people who can pay for everything and leave you untouched.

“They have opted out of a serious debate,” said Martin.

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