Budget 2027: Independent TDs eye ‘whatever affordable’ regarding home heating oil

People need to retain more of their income amid rising cost of living, says group’s leader Seán Canney

Seán Canney said the Government had already brought in measures to help people with fuel costs including extended excise cuts. Photograph: Collins
Seán Canney said the Government had already brought in measures to help people with fuel costs including extended excise cuts. Photograph: Collins

Progress towards abolishing the means test for carers and allowing workers to keep more of their income are among the priorities of Independent TDs supporting the Coalition, according to Minister of State at the Department of Transport Seán Canney.

Canney also said that “whatever is necessary” and “whatever is affordable will be done” when asked about the prospect of halting carbon tax increases on home heating oil.

The Galway East TD is the de facto leader of the group of Independent TDs supporting the Government. He attends the regular pre-Cabinet meetings on Monday evenings with Taoiseach and Fianna Fáil leader Micheál Martin and Tánaiste Simon Harris, the Fine Gael leader.

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Canney was speaking at a press conference for an informal meeting of European transport ministers where the ongoing fuel crisis was on the agenda for discussion.

On Budget 2027 priorities for Government-supporting Independents, Canney said: “If you look at last year’s budget, you see the effect that the Independents have had on that in terms of the means testing for carers”. He said changes to the scheme announced on budget day last year led to more people receiving the carer’s allowance.

He said the Independents would like to see continued progress in abolishing the means test for the carer’s allowance.

In terms of other priorities, Canney echoed other senior Coalition figures who have signalled some income tax relief in the budget.

“There is a need to look at people who are working, their income, and how we can actually help people retain more of their income because of [the] cost of living.”

The meeting of transport ministers in Dublin Castle was held as part of Ireland’s presidency of the Council of the European Union. It takes place against a backdrop of the ongoing fuel crisis caused by the Iran war.

European Transport Commissioner Apostolos Tzitzikostas said if the situation in the Middle East and the energy crisis worsens, he will seek an “extraordinary ministerial meeting to discuss possible urgent measures that we might need to take”.

Canney said that the Government had already brought in measures to help people with fuel costs, including excise cuts that have been extended.

He said the Government was taking advice from the European Commission in terms of what they foresee happening.

“It’s a crystal ball at times. We’re also looking, taking advice ourselves in terms of fuel stocks,” said Canney.

Tzitzikostas said: “As we speak, there is no supply problem in the EU”, and commercial and emergency stocks were sufficient.

“However, the evolution of the conflict in the Middle East ... as well as the usual demand trends for the autumn and the winter in Europe, could have indeed an impact in the coming weeks and months and further tighten the markets. So we need to remain vigilant and assess constantly the situation.”

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Canney said the Government was keeping the measures it has brought in “under review”.

At the weekend, Minister for Finance Simon Harris said “energy costs and the cost of filling a home-heating tank is a big concern for Government”, and he was looking at the carbon tax as it applies to the fuel.

A planned increase in carbon tax on home-heating oil, which was due to come in last May, was deferred to October 14th as part of the cost-of-living measures brought in by the Coalition.

Canney said he did not want to speculate on what will be in the budget when asked if Independents would like to see a halt to the carbon tax increase.

“I think it’s time for us to sit down and see what we can do best for our citizens, whether that’s stalling carbon tax or whatever – whatever is necessary, we will do it,” he said.

“Whatever is affordable will be done. But I think it’s important to say that I don’t want to create an expectation on anything.”

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Cormac McQuinn

Cormac McQuinn

Cormac McQuinn is a Political Correspondent at The Irish Times