Budget 2027 Must Not Leave Family Carers in the Cold

Family Carers Ireland deeply concerned that Budget 2027 will do little to address cost of living crisis facing family carers

Thursday, 1st October 2026: Reports that the weekly rate of Carer’s Allowance may increase by just €7.50 in Budget 2027, while income disregards remain unchanged, would represent a failure by Government, Family Carers Ireland has warned.

With energy bills and Fuel Allowance expected to be central to next week’s Budget, the organisation said family carers must not be overlooked. Only 4% of those in receipt of Carer’s Allowance also receive Fuel Allowance, despite many carers spending long periods at home and facing higher heating, electricity, transport and household costs because of the care they provide.

A €7.50 increase in the weekly rate of Carer’s Allowance would fall far short of the support family carers need and would do nothing to address the unfairness and uncertainty created by the current means-tested system. This would go against the Programme for Government commitment to increase the Carer’s Allowance income disregard in each Budget, as part of a phased abolition of the means test. 

The warning comes as Budget 2027 falls on Tuesday, 6th October, the same day as European Carers Day. Family Carers Ireland said the timing gives Government a clear opportunity to turn recognition of family carers into action.

New analysis from the Economic and Social Research Institute (ESRI) underlines why that action is urgent. The report projects that the need for care among people aged 50 and over will increase by between 49% and 58% by 2040, depending on demographic and healthy-ageing trends. If everyone experiencing difficulties with activities of daily living received the care they needed, demand could increase by as much as 123%.

The ESRI analysis also highlights Ireland’s continued reliance on family care. Family carers already provide a substantial share of the support people need, while formal services are generally designed to support rather than replace care provided by families. However, the availability of family carers may decline as families become smaller, more women participate in the workforce and generations live further apart.

Family Carers Ireland said the projections make it essential that Budget 2027 strengthens supports for carers now, rather than waiting until pressures on families and services become even greater.

Throughout September, the organisation held local pre-Budget townhalls in every constituency with TDs, Senators and family carers. The message was consistent. Families are facing rising costs, inaccessible respite, hard to navigate services and deep anxiety about who will care for their loved ones when they no longer can. Family Carers Ireland said these are not isolated pressures, but a warning that the system is under strain.

Family Carers Ireland’s State of Caring 2026 research found that 71% of family carers are struggling to make ends meet, while almost half have cut back on essentials such as food and heating. Three in four have never received respite.

Sharon Foley, Chief Executive Officer of Family Carers Ireland, said: “Government cannot put energy costs at the centre of Budget 2027 while overlooking family carers. Many face higher heating, electricity and household costs because of the care they provide at home. Yet only 4% of Carer's Allowance recipients receive Fuel Allowance. If Budget 2027 is serious about helping households with energy costs, it cannot leave family carers freezing in the homes where essential care is being provided.”

She added: “The ESRI’s projections make clear that family care will become even more important as Ireland’s population ages and the need for care increases. The report concludes that if family carers are to remain a core component of Ireland’s long-term care system, additional supports and targeted policies will be essential, tailored to the nature and intensity of the caring role. That means investing in family carers through adequate financial support, respite and flexibility at work, while fully funding and delivering the Carer Guarantee so families can access the supports and services they need, where and when they are needed.

Family Carers Ireland is calling on Government to increase Carer’s Allowance and Carer’s Benefit to €325 per week, raise the annual Carer’s Support Grant by €150 to €2,150, fully fund the Carer Guarantee and deliver a right to appropriate, free and regular respite.

Having significantly increased the income disregards for Carer’s Allowance in Budget 2026, Family Carers Ireland is urging the Government to take the final step in Budget 2027 and abolish the means test.

Ms Foley concluded: “The Government has already done most of the heavy lifting on the Carer’s Allowance means test. Budget 2027 is where it decides whether to finish the job. European Carers Day and Budget Day fall on the same date this year. Recognition is easy. The real test is whether the Budget delivers.”