The Irish government has unveiled its Budget 2027 package, with some of the most talked-about measures hitting both wallets and habits across the country.
People receiving the state pension and core welfare payments will see a €10 per week increase, giving a modest but welcome boost to some of the most financially vulnerable people in the country. The rise applies across the board to main welfare rates, meaning hundreds of thousands of households will feel at least some relief heading into the new year.
For those who have swapped cigarettes for vaping, however, Budget 2027 brings some unwelcome news. A new tax of 20 cent per millilitre will be slapped on vape liquid, a move the government says is aimed at discouraging use, particularly among younger people. A typical 10ml bottle of vape liquid could see its price jump noticeably as a result, and industry figures are already warning the measure could push people toward unregulated products bought online.
The vape tax is part of a broader effort to treat e-cigarettes more like traditional tobacco products from a public health and revenue perspective. Ireland has seen a sharp rise in vaping rates over the past few years, with convenience stores and dedicated vape shops popping up in towns and cities across the country. Critics of the new levy argue it punishes adults who turned to vaping as a way to quit smoking, while supporters say the product has been undertaxed for too long given its health implications.
On the welfare side, the €10 increase follows similar rises in recent budgets, though advocacy groups have consistently argued that these increments do not go far enough to keep pace with the actual cost of living. Rents, groceries, and energy bills have all climbed significantly in recent years, and many recipients say weekly payments still leave them well short of what is needed to cover basic expenses.
Pensioners, who make up a significant and growing portion of the Irish population, will also benefit from the increase. The state pension is a lifeline for many older people, particularly those without private or occupational pension arrangements. Age-related advocacy groups had been lobbying hard ahead of the budget for a meaningful increase, and while the €10 rise will be welcomed, some will argue it remains below what is needed given current living costs.
The budget comes at a time when the government is managing a significant surplus, largely driven by corporation tax receipts from multinational companies based in Ireland. That has given the coalition more room to manoeuvre than in previous years, though ministers have been keen to avoid accusations of splashing cash in a way that could fuel further inflation.
Other measures were also expected to be confirmed as part of the overall package, with housing, childcare, and energy costs all areas where pressure has been mounting on the government to act. The budget represents the government’s clearest statement yet on its priorities as it looks toward the next electoral cycle.
For ordinary households, the real question is whether the measures add up to meaningful relief or simply tread water against the ongoing cost of living squeeze. The €10 welfare increase will land in pockets, but for many it will disappear quickly against rising bills. The vape tax, meanwhile, is the kind of measure that tends to generate strong reactions, particularly among younger adults for whom vaping has become a daily routine.
The full details of Budget 2027 were set to be laid out in the Dáil, with the Finance Minister and Public Expenditure Minister delivering their speeches outlining the complete range of tax and spending decisions for the year ahead.