Workers & Families

Making Work Pay – Supporting Workers & Families

Making Work Pay – Supporting Workers & Families

To make work pay

Fine Gael will:

Reduce your taxes to allow you keep more of your hard-earned income.
Ensure nobody on the average wage pays the higher rate of tax.
Abolish the USC surcharge on the self-employed.
Link social insurance benefits more closely to earnings, like pay-related parental leave, to ensure you can keep more of your money.
We will introduce a new working age payment to end welfare traps and ensure people who work are always better off working than not.

End the Welfare Trap by Introducing a New Working Age Payment

Fine Gael believes that work should always pay, and nobody should be better off on social welfare than in a job. The current Jobseeker’s Allowance scheme is an outdated means-tested system that pays a flat rate for each day of unemployment but restricts individuals who can only work part-time, disincentivising work and discouraging additional hours at a time when many small businesses are in need of staff.

Fine Gael will:

Publish a strawman proposal for a Working Age Payment: Within our first 100 days in office, we will consult on a new Working Age Payment aimed at improving the welfare system.
Create a stronger link between welfare and earnings: The Working Age Payment will ensure that individuals always see an increase in income when they take on additional work by removing inconsistencies and anomalies in the current system.
Base the Working Age Payment on the Working Family Payment model: This payment will incentivise and reward work, making it more beneficial for individuals to engage in employment.

Fine Gael has a strong track record in introducing significant social policy reforms, such as the Pay Related Benefit and Auto Enrolment. We will apply the same collaborative approach, involving stakeholders in the final design of the new Working Age Payment. These initiatives aim to create a fairer social welfare system that encourages employment and supports individuals in achieving financial independence.

To make work pay

Fine Gael recognises the important role taxation plays in fuelling our society, boosting our economy and deciding people’s standard of living.

Fine Gael has consistently reduced income tax over the last decade. Our commitment remains to lower the tax burden on working families and to ensure that our tax system is progressive, incentivising work and allowing individuals to retain more of their hard-earned income.

We will continue to prioritise making work pay in taxation measures. This commitment will ensure that significant resources are directed toward reducing taxes and enhancing financial relief for families.

To support workers, we will:

Increase the higher tax band threshold: We will raise the point at which a worker enters the higher tax band by at least €2,000 each year, ensuring that individuals earning €54,000 will not be subject to the higher rate of income tax.
Boost main tax credits: We will increase the Personal, Employee, and Earned Income Credits by €75 annually. This will translate to €750 back in the pocket of most taxpayers by 2030.
Adjust USC thresholds: We will raise the entry threshold for the 3% USC band from €27,382 to
€40,000, and the entry threshold for the 8% USC band from €70,044 to €75,000.
Remove undue penalties on self-employed individuals: Abolish the USC surcharge on self-employed income to support those who take risks to build their businesses.
Ensure the self-employed benefit from tax credits: We will align any increases in personal income tax credits to ensure self-employed individuals receive the same benefits as employees.
Enhance Benefit in Kind: We will compile recommendations to promote Benefit in Kind as a method for supporting health and wellbeing activities, such as gym memberships or dental care.
Extend Pay-Related Parents Benefit: Introduce Pay-Related Parents Benefit modelled on the new Pay- Related Benefit, and seek to extend this to other forms of leave over time.

To help with the cost of raising a family

Fine Gael will:

Introduce a new child savings account, the Acorn Account, with a €1,000 State contribution for every child from birth to help save for the future. Every child in a family in receipt of child support payments will receive €1,500.
Cap childcare fees at €200 a month per child or €600 for a family with three or more children and create 30,000 additional places by establishing State-led childcare facilities.
Extend free hot school meals to all schools, and introduce a permanent double child benefit ahead of back-to-school time.
Abolish college fees and increase access to SUSI grants.
Extend free GP care to under 18s, abolish prescription charges and cut the cost of medicine to €50 a month.

Addressing the Cost of Living:
Putting Money Back in Your Pocket

Fine Gael is committed to easing the financial pressures on families, individuals, and communities across Ireland. It’s what we’ve done over successive budgets.

As the cost of living rises, we understand the need for policies that make life more affordable and ensure everyone, regardless of background or income, has access to essential services and support.

From early childhood to retirement, our approach is comprehensive, inclusive, and focused on sustainable change. We will implement cost-of-living solutions across all areas of government, creating a supportive environment where every person has the opportunity to thrive in a more financially secure Ireland.

Our manifesto commits to:

Supporting Families and Reducing Financial Pressures

Cap Childcare Costs: Limit childcare expenses to €200 per month per child or €600 per family, bolstered by increased support for the National Childcare Scheme.
Extend free hot school meals to all school, and introduce a permanent double child benefit ahead of back-to-school time.
Abolish college fees and increase access to SUSI grants.
Extend free GP care to under 18s, abolish prescription charges and cut the cost of medicine to €50 a month
Increase the State Pension: Raise the weekly State Pension to €350 over the next government term to ensure greater financial security for seniors.

Caring for the carers

Over the lifetime of the next government, introduce a new Family Carer Payment of €325 per week in recognition of the vital role carers play in our society.
Abolish the Carer’s Allowance means test starting by increasing the weekly income disregard to €1,250 for a single Carer and €2,500 for a couple in Budget 2026.
Increase the Annual Carer’s Support Grant to €2,500.

Backing businesses

Temporary PRSI Rebate: We will introduce a temporary, three-year PRSI rebate based on the number of lower-earning workers on a company’s payroll.
Lower VAT Rate: We will permanently reduce the VAT rate from 13.5% to 11% for food, entertainment and hairdressing services.
Energy+ Grant Scheme: We will extend grant aid to the small retail and hospitality businesses who need help most with energy costs. The Energy+ scheme will provide €4,000 of direct financial support to 50,000 businesses in 2025.

Helping people to buy their first home

Increase Relief for First-Time Buyers: Raise the relief under Help to Buy to €40,000, a 33% increase since the last adjustment in 2020.
Extend the Scheme: Maintain the Help to Buy initiative until 2030.

Supporting a Better System for Renters and Landlords

Increase Rent Tax Credit: Raise the Rent Tax Credit to €1,500 per renter, or €3,000 per couple, to alleviate rental costs and support tenants in managing expenses.

Dedicated Accommodation for Public Sector Workers

Explore Cost Rental Housing for Frontline Workers: Conduct a feasibility study on developing affordable rental accommodation specifically for frontline public sector workers, ensuring key workers can live close to their places of work.