Fianna Fáil Ministers support increase of renters’ tax credit to €1,000

Fianna Fáil Ministers are backing a further increase to the renters’ tax credit in a move which could see the payment rise to €1,000.

Separately, Minister for Finance Jack Chambers has moved to dampen expectations around Budget 2025, saying it will be “tighter” than the pandemic and inflation-tackling budgets that have come before it.

Speaking on Wednesday morning, Mr Chambers and Minister for Housing Darragh O’Brien said they would like to see the renters’ tax credit increased.

“Jack’s predecessor and our good colleague Michael McGrath was the finance minister who brought in the rent tax credit and it has been a real support for renters. I know both I and Jack understand that very well, because we know a lot of renters in our own area. So that’s something that we will absolutely discuss and I think Minister Chambers and I have have already said that we would like to see the further expansion of the renters tax credit,” Mr O’Brien said.

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Minister Chambers said further progress had to be made.

“It was a really important measure to help support renters where rents were rising and it gives them some support from the State. And obviously every budget, I think, has to make progress when it comes to affordability in housing and supporting renters. We want to make sure that in each budget we make successive and continued progress for renters and also on affordability of housing.”

Mr Chambers also moved to dampen expectations around the forthcoming budget, but indicated that some cost-of-living measures may still remain.

“The current economic backdrop is that inflation has levelled at around 2 per cent and we expect modified domestic demand to strengthen, which means the wage increases that households are experiencing should see real effect in economic terms through the year. So the budget will be framed in a careful way. We’ll obviously set that out next week as part of the Summer Economic Statement.

“But we’re clear that for many there are still pressures on households and on families and we want to make sure we strengthen living standards and support people through the winter period.

“But it is going be a tighter budget than what we’ve had through Covid and through very high levels of inflation. I think we have to get back to a more regular budgetary environment. Through that and through sound economic management, we still have the capacity to support people and improve living standards and that’s what we’re seeking to do in a progressive way.”

He said there have been no decisions yet on a cost of living package.

“The mix of supports hasn’t yet been decided. But we recognise that for some families, there are ongoing pressures but we’ll have to assess that in the autumn. But we have to get to a more regular budgetary environment.”

Separately, Minister O’Brien said he will bring new revised housing targets in October, and indicated that they would be in the high 40,000s or early 50,000s per year.

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