Government plans to halt carbon tax hikes on kerosene and heating oil in 2027 budget

At a Fianna Fáil Cairde Fáil dinner in Dublin, Taoiseach Micheál Martin said the government is moving toward eliminating all carbon tax hikes on kerosene and home heating oil for the remainder of its term, citing winter heating pressures and the broader energy crisis. He also announced that social welfare claimants will receive a double Christmas payment, a routine annual gesture. Budget talks are set to continue through the weekend, with senior officials meeting at Government Buildings on Sunday.

While retrofitting programmes funded by carbon tax proceeds remain under discussion, Martin noted the low yield from the heating-oil levy makes alternative financing feasible. He did not rule out future energy credits, acknowledging that last-minute proposals could emerge. Ministers reported mixed views on public spending, but the Taoiseach affirmed a 6% growth target and rejected claims of cuts, highlighting planned increases for disability benefits, childcare, and public-service pay. Cultural and sports departments have secured modest funding, with the Culture Card for 16-year-olds slated for further development.