Taoiseach signals halt to home heating oil carbon tax increases for lifetime of Government

Taoiseach Micheál Martin signalled that carbon tax increases on home heating oil will be halted for the remainder of the Coalition’s time in office, while also confirming that welfare recipients and pensioners can expect a Christmas bonus payment this year. He was speaking in advance of the Cáirde Fáil dinner in Dublin which is being held this year as Fianna Fáil celebrates its centenary. Negotiations are continuing this weekend as senior Coalition figures finalise Budget 2027 which is due to be announced on Tuesday.There will be much focus on measures aimed at helping households amid the continuing energy crisis caused by the Iran war. READ MOREAsked if carbon tax increases on home heating oil – already postponed this year – could be stopped for the lifetime of the Government, Martin said: “In respect of the home heating dimension of the carbon tax, yes, that’s the direction of travel.”“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 said there is a hope that the G7 decision to release oil reserves will help reduce prices, but added: “What really is required is the end of the conflict and a sustainable agreement between Iran and the United States and also the end to the Russian-Ukrainian war. Because, as you know, a lot of oil stocks are being destroyed in respect of that war also.”The last Government used household electricity credits to respond to rising fuel prices caused by Russia’s invasion of Ukraine.[ Budget 2027: Measures on pensions, welfare, income tax and more take shapeOpens in new window ]Martin said that energy credits have not been discussed in budget talks as yet. “I can’t anticipate what new measures people might put forward at the 11th hour but they haven’t been discussed to date,” he said.Meanwhile, social welfare recipients and pensioners can expect a Christmas bonus payment this year.“Yeah, I think they will [receive the payment]. I mean, I don’t think that’s a big surprise, and we do that every year. And certainly, we’re in a position to do it this year,” he said.A €10-per-week increase in the State pension and other welfare payments are expected to be announced as part of the budget on Tuesday.Martin was also asked if childcare cuts would be targeted at any particular age group. He said there has been an “enormous expansion” in investment in childcare in recent years. “There’s no question that the significant costs arise in the early years, in the zero to five years, and I think that’s something that the minister and public expenditure, people are looking at. But that all remains to be discussed.”[ Budget builders: the money Ministers who are two sides of the same coinOpens in new window ]He said that budget spending measures will be within a fiscal framework of a 6 per cent growth in public expenditure. Earlier, Martin said the budget will be “about trying to ease the pressures on families and households, in respect of the cost of living, which is bearing down on people because of the war in Ukraine, and the war in the Middle East”.He said “cost of living is a key issue” and there will be a variety of measures including in the areas of income tax, support for people with disabilities and social protection “to alleviate pressures on families”.