13. Deputy Catherine Callaghan asked the Tánaiste and Minister for Finance his plans for the reduction or abolition of USC in budget 2027; and if he will make a statement on the matter. [48308/26]

Sentiment score: 0.01

I ask the Minister his plans for the reduction or abolition of USC in budget 2027, in particular, if there is scope to reduce the USC that is payable on occupational pensions for people aged over 66.

Sentiment score: 0.00

I acknowledge all the work that has been done to date. I am sure the Minister hears from his constituents as regularly as I do that the fact that the USC was first introduced in 2011 as a temporary measure but is still with us 15 years later has made this particular tax a point of contention. I absolutely acknowledge the reality that there are many major investments into public services and infrastructure projects across the country that were only possible because of this tax, which, as the Minister mentioned, will bring in €5.9 billion this year. The medium-term fiscal and structural plan, which the Minister published in December, is a strong statement of the Government's intent and ambition to achieve key social and economic targets. Of course, it is essential that under this plan, our public finances remain stable, resilient and ready, which goes to the Minister's point that there is a need to decide how exactly we make changes in the upcoming budget. While the USC will play a key role in delivering on this plan, I wonder, as we continue to experience a budget surplus, if there might be room to alleviate the pressure this tax places on certain sectors. For instance, would the Minister consider measures to increase the income disregard for USC or to reduce the amount payable on pension contributions at this time?

Sentiment score: 0.23

It is really hard to argue with that point of view. Above all, I know that the Government is dedicated to delivering on the commitments made in the programme for Government, which will work towards a fairer, more equal Ireland. One of the key components of the programme is a commitment to progressive changes to personal income tax, which I am glad the Minister has recognised will happen, and to ensure that, as we push forward and grow our economy, nobody is left behind. In budget 2026, the Government lived up to those commitments. It is important that we note that. It raised the 2% USC tax band up to €28,700. This measure meant and means that a full-time worker on minimum wage will not be pushed into the higher 3% tax rate. That allows for a meaningful increase in take-home pay. Across the country and in my own constituency of Carlow-Kilkenny, there is an appetite for similar measures to be considered in this year's upcoming budget. Is further indexation planned?

Sentiment score: 0.16