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Budget 2027: Key Updates for one-parent families

If you would like more information on any of these changes, or to get some listening support, you can call our AskOneFamily Helpline on 0818 662212 or 01 6629212, between 10am-3pm, Monday-Friday. You can also email us at helpline@onefamily.ie.

Social Protection 

  • €10 increase to core social protection payments from January 2027 including One-Parent Family Payment, Jobseeker’s Transitional Payment, Jobseeker’s Allowance and Carer’s Allowance. If you receive a reduced rate of payment, you will still get an increase, but it will be less than €10.
  • The Child Support Payment (formerly Increase for a Qualified Child) for dependent children will increase by €6, for both age groups, from January 2027. The new weekly payment for children under 12 will be €64 per week and for children over 12, it will be €84 euro per week.
  • €10 increase to the income disregard (the amount of money you can earn before your payment is impacted) for Jobseeker’s Transitional Payment (JST) and One-Parent Family Payment (OPFP), bringing both to €175 per week, from July 2027.
  • €30 increase to the weekly threshold for the Working Family Payment, from January 2027, for all family sizes. This means more people may qualify for the payment. If you already receive it, you may see a small increase in your weekly payment, depending on your net household income. Please note any increases in your net take home pay or social protection payments will be included in the means test at your next review.The new, weekly, Working Family Payment income thresholds are:
    • One child: €795
    • Two children: €896
    • Three children: €997
    • Four children: €1088
    • Five children: €1214
    • Six children: €1330;
    • Seven children: €1466
    • Eight or more children: €1562
  • 100% Christmas Bonus will be paid in the week starting December 7th 2026, for those on certain social welfare payments.
  • €5 increase in the weekly rate for the Part-Time Job Incentive Scheme, starting in January 2027.
  • €2.50 increase to €35 per week top-up for those participating in the Community Employment Programme, Rural Social Scheme and Tús. This takes effect from January 2027.
  • No changes made to Child Benefit.

Fuel & Energy

  • €5 increase to Fuel Allowance from January 2027. The new weekly rate will be €43. Fuel Allowance is paid from late September to April each year, for a total of 28 weeks. If you get the Working Family Payment, you qualify for Fuel Allowance.
  • Carbon tax increases temporarily paused on home heating oil, but may be subject to increase in 2027.
  • Tax cuts on diesel and petrol to be continued into the Spring 2027 (no exact date, as of yet).

Carers and Disability Supports

  • New €500 cost of disability payment, which will be paid in full, in the first quarter (Jan-March) of 2027. This will be paid to people who currently receive:
    • Disability Allowance
    • Invalidity Pension
    • Partial Capacity Benefit
    • Blind Pension
  • €150 increase to Carer’s Allowance income disregard (the amount of money you can earn before your payment is impacted), from July 2027. A single person can earn €1150 per week before your payment is impacted.
  • Reduction in hours to qualify for the Wage Subsidy Scheme, from 15 hours to 8 hours, starting in April 2027.

Childcare

  • €550 monthly cap for childcare costs, starting in September 2027, for childcare providers in core funding. This cap will apply for childcare for children up to Senior Infants.
  • €4,500 increase to income threshold to receive free childcare through the National Childcare Scheme (NCS), from €34,000 to €38,500, from September 2027
  • €500 increase in the Multiple Child Discount, for families with 2 children under 15, from €5,500 to €6,000.
  • €1,500 increase in the Multiple Child Discount, for families with 3 children under 15, from €11,000 to €12,500.
  • Increase of €0.36 per hour for the National Childcare Scheme’s universal subsidy, to €2.50 per hour, for children up to and including Senior Infants from September 2027.
  • €5,000 increase in tax-free income for childminders, from €15,000 t0 €20,000 per year. The limit of 3 children will also be removed.

Education

  • The Student Contribution fee is being reduced by €150, bringing it from €2500 to €2350 per year. This will come into effect from September 2027.
  • Maintenance grants will increase by 4.5% across every band from January 2027.
  • Families with an income below €150,000 and with more than one child in college will be eligible for enhanced and new student contribution fee grant supports from September 2027.

Income and Tax

  • €0.79 increase to national minimum wage, €14.94 per hour, from January 2027.
  • €125 increase for a single person’s tax credits, to €2125, from January 2027.
  • €2,500 increase to the threshold for the higher rate of income tax, from €44,000 to €46,500. Incomes under €46,500 will now be taxed at 20%.
  • €1,600 increase to the threshold for paying USC, to €30,300 from January 2027.
  • No change to USC exemption for medical card holders.
  • No increases to the Single Person Child Carer Credit.
  • No changes to the standard income tax rate.

Housing

  • €150 increase to Rent Tax Credit to €1,150 per year for an individual, from January 2027.
  • €2,000 increase in Rent-A-Room Tax Relief, from €14,000 to €16,000, from January 2027. This means that, if you are renting out a room in your home, you do not have to pay tax on rental income up to that amount. The scheme has also been extended to detached, secondary homes in back gardens, if they are built after 27th July 2026 and are between 32 square meters and 45 square meters.
  • €5000 increase in the Help to Buy Scheme, from €30,000 to €35,000, starting immediately.
  • No increases to Housing Assistance Payment (HAP) or Rental Accommodation Scheme (RAS) limits.