Workers’ budget needed to combat cost of living spiral
by Niall Shanahan
 
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The Irish Congress of Trade Unions (ICTU) this week called on Government to deliver a “workers’ budget” in Budget 2027, warning that costly short-term gimmicks and giveaways have failed to ease the pressure on working people and their families. 

 

The call is contained in Congress’s Pre-Budget submission, which says the Government must prioritise workers’ living standards, protect public services and invest in the infrastructure that working families rely on every day. 

 

Fórsa deputy general secretary and ICTU vice president Katie Morgan said the submission was a timely reminder that Budget 2027 must respond to the real pressures facing workers, particularly as inflation has remained elevated in recent months. 

 

“The cost-of-living crisis is very real for working people. Recent inflation figures show that prices are still rising, with housing, energy, education and other essential costs continuing to put pressure on household budgets. Workers need a Budget that protects their incomes, strengthens public services and delivers practical supports that make a difference week to week,” she said. 

 

The latest Consumer Price Index figures from the Central Statistics Office show that consumer prices rose by 3.4% in the 12 months to June 2026, with housing, water, electricity, gas and other fuels up 7.3% over the year. Congress says those pressures underline the need for a Budget focused on workers rather than once-off measures that do little to improve living standards. 

 

Congress is calling for Budget 2027 to be a “workers' budget” that includes: 

  • Double indexation of the income tax system in Budget 2027 to compensate workers for the absence of a tax package for PAYE workers in Budget 2026; 
  • A €1 increase in the National Minimum Wage from January 2027 to deliver the promised Living Wage for low-paid workers; 
  • Reductions in the cost of using essential public services, including significant progress on delivering the promised €200-a-month childcare; 
  • An end to the payment cap freeze on pay-related jobseeker’s benefit and a timeline for introducing the promised pay-related parent’s benefit; 
  • A second tier of child benefit for low-income families, in and out of work; and 
  • Increased investment in public transport and green energy infrastructure, including targeted supports during winter where necessary. 

Congress says recent Budgets have been marked by expensive interventions that delivered little for workers or average working families, while also weakening the State’s capacity to invest in public services and infrastructure. 

 

The submission also calls for a more sustainable approach to public finances, including broadening the tax base in line with recommendations from the Commission on Taxation and Welfare. ICTU has argued that proposals such as VAT cuts for hospitality business owners, or cuts to inheritance tax and capital gains tax, are short-sighted at a time when public services require long-term investment. 

 

Congress general secretary Owen Reidy said Government must end “gimmicks and giveaways” and invest in workers and the services they depend on. 

 

“This Budget is a chance for Government to choose a different path. That means a Budget that broadens the tax base, invests in the ordinary PAYE worker and public services, and ensures Government is doing what it can to support workers’ standard of living,” he said. 

 

Katie Morgan said Fórsa members would be looking to Budget 2027 for practical measures that reduce everyday costs and protect household incomes. 

 

“Public service workers, low-paid workers and families across the country need to see a clear shift away from short-term giveaways and towards sustained investment in the services that shape daily life. Affordable childcare, reliable public transport, secure income supports and action on energy costs are all part of protecting living standards,” she said. 

 

Download Congress’s full pre-Budget submission here.

 

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