Households worse off as Government’ delivers a Budget of bare minimum

Independent TD for Offaly Carol Nolan has cited the Oireachtas Parliamentary Budget Office analysis of Budget 2027 which has found that the combined impact of Budgets 2026 and 2027 has left households worse off relative to both inflation and wage growth benchmarks.

According to its Budget 2027 Flash Impact Analysis, the PBO found that average household disposable incomes are 0.6% below a price-indexed baseline and 1.4% below a wage-indexed baseline, with lower-income households experiencing the greatest losses.

Deputy Carol Nolan said the findings expose the reality behind Government claims that Budget 2027 is a success:

“The Parliamentary Budget Office has confirmed what many families already know from their own experience. Despite record State revenues and unprecedented levels of public spending, the cumulative effect of the Government’s first two budgets has failed to keep pace with inflation,” Deputy Nola said.

Deputy Nolan said Budget 2027 represented a major strategic error in terms of its failure to address the major challenges facing Irish families, farmers, carers and rural communities:

“Budget 2027 is not a Budget of transformation. It is a Budget of bare minimums. The Government had record resources at its disposal. It had the opportunity to fundamentally address housing, rural decline, farm viability and the cost pressures facing carers and ordinary families. Instead, it has largely opted for a series of incremental measures while avoiding difficult questions.”

Deputy Nolan also criticised what she described as a serious imbalance in Government spending priorities, pointing to the allocation of €855 million for overseas development assistance within a €1.3 billion allocation to the Department of Foreign Affairs, while many Irish households continue to struggle with rising costs:

“The Government can always find money for international commitments. It seems considerably harder to find the same urgency when it comes to the needs of people here at home. Pensioners, carers, farmers and rural families are entitled to ask whether Government priorities are properly balanced.”

In her Budget speech, Deputy Nolan noted that Ireland’s direct commitments to Ukraine now exceed €670 million since 2022, including a further €125 million package announced earlier this year, while the entire Just Transition allocation for the Midlands amounts to €25 million, the National Sheep Welfare Scheme receives €22 million.

On housing, Deputy Nolan said Government Ministers continue to focus exclusively on increasing supply while refusing to acknowledge the impact of rising demand pressures.

“The Tánaiste is correct when he says increased supply is necessary, but that is only half the story. Housing is determined by both supply and demand. There was extensive discussion of increasing supply but virtually no discussion of the unprecedented demand that migration pressures are creating for the the State or the impact this is having on housing, healthcare, childcare, education and infrastructure. Increasing supply while ignoring demand is like trying to fill a bath without first turning off the tap.”

Deputy Nolan welcomed several education measures, including increased capitation grants, additional SNAs and extra special education teachers, but questioned how staffing targets would be achieved amid existing recruitment difficulties:

“Announcements are not outcomes. Schools are already struggling to fill vacancies and parents are already struggling to access services. While SUSI grants are increasing, there was no evidence that eligibility thresholds have been expanded. This means that thousands of middle-income families remain locked out of support despite facing soaring college costs.”

On agriculture, Deputy Nolan welcomed measures including the €31 million fertiliser scheme, fuel support extensions, the €22 million Sheep Welfare Scheme, and farm succession reforms. However, she said many of the core issues repeatedly raised by the farming community remain unresolved:

“Most of these measures help farmers manage costs. Very few improve farm incomes and very few improve long-term viability. Government continues to tell farmers they are central to climate policy, but where is the major dedicated climate investment package that would allow them to remain competitive while meeting those obligations?”

Deputy Nolan also welcomed increases to Carer’s Allowance disregards, weekly payment rates and disability supports, while warning that many carers continue to face severe financial hardship.

“Family Carers Ireland has highlighted that 71% of carers struggle to make ends meet and 75% have never received respite care. Carers deserve more than praise. They deserve meaningful support and recognition of the enormous contribution they make every day.”

Deputy Nolan said the electorate would ultimately judge Budget 2027 by outcomes rather than spending totals:

“The Government speaks about record spending, but the public wants record delivery. Families are entitled to ask why so much money can be found for overseas aid and international commitments while carers, farmers, pensioners and rural communities are still being asked to settle for incremental change. That is why Budget 2027 remains, in my view, a Budget of bare minimums,” she concluded.