Who are the biggest losers in Budget 2027?
Apart from low earners who might have expected being better off than those enjoying the hike in the higher income tax threshold, few groups were expressing displeasure
The Small Firms Association said the increase in the minimum wage 'completely dismantles and neutralises any prospective relief before businesses can even see it'. Photograph: iStock
In a budget that showed how to give away money in lots of different ways, but contained few measures to actually raise it, you could be forgiven for thinking that nobody would feel shortchanged.
Apart from low earners who might have expected being better off than those benefiting from the hike in the higher income tax threshold, few groups were openly expressing displeasure on Tuesday evening.
Small business owners were, however, far from thrilled.
There had been something of a campaign to persuade Peter Burke to reject the recommendation of the Low Pay Commission, but no minister for enterprise had ever done that – and Burke approved it, taking the minimum wage to €14.94 an hour (up 79 cent), or above €30,000 annually for the first time.
The Small Firms Association said that despite being part of the Government’s Cost of Business Advisory Forum, “which established a 63-recommendation roadmap to ease non-pay regulatory and administrative burdens”, the increase in the wage “completely dismantles and neutralises any prospective relief before businesses can even see it”.
Finbarr Filan, chairman of small business representative group ISME, said the increase would “add further pressure on businesses that are already struggling with rising costs”.
Workers on the minimum wage might argue they were struggling with rising costs themselves.
Budget 2027 main points: income tax rate changes; €10 increase in pension and welfare rates
Those families set to benefit from the reductions to the highest childcare costs will be understandably pleased at the thought of saving up to €2,220 per child per year.
However, they will be careful not to get ahead of themselves with spending the money, as that will not take effect just yet.
Unlike most other measures announced in the budget, the benefits aimed at the childcare sector usually only come into effect the following September, so families will basically be awaiting for the savings until 2028.
Early Childhood Ireland, which represents childcare and creche workers, welcomed the move, but lamented what it called the lack of more substantial measures to counteract losses of staff in order to improve recruitment and retention in a sector that suffers from acute staff shortages.
“While we understand that the Government has made a commitment to parents to reduce fees, this will not expand places or improve wages for this essential workforce,” said Frances Byrne, the organisation’s director of policy.
“Instead, we expect to see significant, increased demand for early-years services, and settings simply won’t be able to meet it.”
The budget did not include any extension to temporary mortgage relief, which had been worth up to €1,250 annually to qualifying households.
Commuters are set to be up to €150 a year worse off after the Government opted against providing any assistance that might offset expected fare increases.
Climate activists might be upset by that too, although perhaps not as much as they will be by the Government’s move to cut carbon taxes on gas and heating oil – and the Budget 2027 commitment not to increase them again “in the lifetime of this Government”.
Green Party leader Roderic O’Gorman described the move as “pathetic”.
He said the move meant the budget for retrofit grants will be cut in real terms.
One Family Ireland, an advocacy group that campaigns for single parents, expressed disappointment that more had not been done to support lone-parent families.
It argued that no increases had been announced for the One Parent Family Payment and Jobseekers Transitional Payment, Housing Assistance Payment or Rental Accommodation Scheme.
The Irish Property Owners’ Association, meanwhile, said an opportunity had been missed to introduce measures that would keep private landlords in the market.
