A few hundred euro, delayed childcare cuts and the missing culture card: This was a 'meh' budget

TODAY REVEALED A budget of tweaks, rather than transformation. 

The government is this evening hoping that it has done enough to avoid public criticism.

To be honest, most people at home have probably done the maths and realised they’re not a lot better off than they were on Monday. 

In stark contrast to the austerity years, there were no protests outside Leinster House this budget day, with minimal security arrangements around the complex. 

It can probably be put down to a feeling of apathy among the public right now. 

The public has heard the promises, seen the tinkering around the edges today, and shrugged their shoulders, not surprised that the government is not coming to their rescue in the midst of this cost-of-living and energy crisis. 

In fact, this was acknowledged today, with Tánaiste and Finance Minister Simon Harris noting in his budget speech that the government can’t do it all. 

There are a few things that will be welcomed, but they won’t have people cheering. 

First up are the tax changes.

They’re welcome to those who pay the higher rate of tax, with the threshold raised to €46,500. These workers could get up to €766 back in their pockets.

However, there are plenty of people on lower incomes who won’t see anything close to that saving. 

Those that are lucky enough to get the bigger saving will quickly see it gobbled up by the rising cost of energy bills and fuel costs.

If that person uses public transport regularly, they can deduct another €200 when fare hikes kick in next year. 

A single PAYE worker earning €40,000 will be only about €260 per year better off. About a €5 a week. Hardly anything to write home about.

Don’t forget, these tax changes come a year after the government chose not to touch taxation last year, leaving many people worse off. 

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Let’s turn to childcare costs.

There was a lot of talking up the childcare changes in the run-up with this budget, with the Taoiseach stating that it would be a “significant”, while Children’s Minister Norma Foley said it would be a “breakthrough” budget for childcare.  

The universal hourly subsidy under the National Childcare Scheme will go from €2.14 to €2.50 for children up to senior infants, the second year of primary school, the government announced today as part of Budget 2027.

The monthly cap on childcare fees for kids up to senior infants will now be €550. That’s down from €735, so a 25% cut for parents of children in full-time daycare.

It’s understood the government considered spreading the available budget for increased childcare subventions to a wider cohort including older children, who may attend after-school services.

However, the government ultimately decided to focus higher subsidies on younger children as their parents are currently paying the most for childcare.

Delaying changes 

The government also chose to push out these changes to September.

Underestimating how much this is going to irk parents who are on the cusp of the supports, the choice to delay shows a lack of urgency to get the election promise of €200 per month per child on childcare fees over the line. 

Yes, this year has made a dent. But at a time when the cost of living is raging, childcare is still a major chunk of change for most parents. 

In terms of housing, something the government said is its number one priority, there were no new ideas. 

Instead, there were some minor changes to existing schemes. 

The programme for government commits to progressively increasing the Rent Tax Credit. 

It had been flagged that a €200 increase might be on the cards, but in the end, it was just a €150 increase. 

It’s an increase, but in the dysfunctional rental market, it is chump change to those who have seen their rents rise in the last year. 

Market rents rose by 1.4% between March and June of this year, though it is significantly lower than the record high seen in the first quarter of 2026, when the average rent rose by 4.4%. 

The average market rent for a two-bedroom apartment in Ireland is now €2,204 per month. 

The increase in help-to-buy scheme by €5,000 will be welcomed by some who are looking to buy new builds, but many people are priced out of such homes these days with many new housing estates selling for close to or over €500,000. 

Those people, who are looking for houses in the second-hand market, the doer-uppers, will find no relief in this year’s budget, with Harris telling The Journal that he is not in favour of expanding the help-to-buy grant to second-hand home purchasers for fear it will drive up house prices. 

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Carbon tax, and the changes to it, has also been a big talking point of this budget.

Minister for Climate Darragh O’Brien has insisted the government is still “committed” to the carbon tax, but his junior minister Seán Canney said that uncertainty is the buzzword hanging around right now. 

The government moved to cut the carbon tax on home heating oil and gas, shelving the planned increases for the rest of its term. At a press conference this afternoon, O’Brien was accused of undermining the whole carbon tax model, but the minister denied this, stating that he also remains committed to retrofitting grants.

Where he will get that money to fill the carbon tax revenue hole will definitely be one to watch over the next year. 

The curious case of the missing culture card

There was one peculiarity today, the missing culture card announcement.

As reported last week, there was a tense meeting between Arts Minister Patrick O’Donovan and Chambers last week, which resulted in a walkout. 

The Journal asked Chambers just what went on there. Bluntly, he said there is no money to fund that idea this year. That’s that then.

A warning to ministers not to promise the sun, moon and stars to the public until you’ve checked with the man who holds the purse strings. 

The truth is that the big bang announcements of budgets past are no more. The budget kite-flying gets earlier every year, and it is rarity for any big surprises.

Another reason why this year’s budget was pretty boring and why the next few might also be, is that Ireland has agreed to spending constraints with the EU for the next few years under a new fiscal budget framework, which was endorsed by EU finance ministers in March.

It doesn’t take away all the power from national governments, but it does put guard rails around the level of spending that is allowed. This year, a 6% increase in spending was allowed, with Chambers getting it in the neck, even from those in his own party, for sticking so rigidly to it.

Over the next three years, the budget spending increase should rise nominally. But like this year, it might not be anything to write home about.

Rounding out his budget week at today’s final press conference in Government Buildings, Harris wished his department’s communications officer well on what is his final public outing. Attendees clapped.

“That was the only way we could get an applause at the press conference,” laughed Harris.

A telling joke that perhaps this government isn’t expecting a standing ovation for this budget.