Middle-income working families continue to shoulder the greatest burden of rising living costs. Many are earning too much to qualify for targeted supports and they are finding it increasingly difficult to meet the costs of childcare and housing, and also to meet everyday expenses. At the same time, wage increases intended to keep pace with inflation are pushing more workers into the higher rate of income tax.

As the Government prepares for budget 2027, I am asking the Tánaiste to prioritise middle-income families through adjustments to the standard rate tax band and tax credits, together with targeted supports to help with childcare and housing costs. Will he set out the principles that will guide decisions to ensure work continues to pay and that middle-income families receive meaningful support?

I thank Deputy Aird very much. I agree with him that there are many good means-tested supports in place in this country. That is important. There are people who find that they do everything right and play by the rules but do not qualify for any of them. They ask us to hang on a second and ask whether they can have a little bit of assistance and keep some of their own money, and whether work can actually pay in this country. There are far too many people who get up very early - earlier by the day - and find themselves at the end of the month just about getting by, let alone getting ahead. Therefore, a priority for the budget will be to see how we can help those people, namely, the squeezed middle or middle Ireland – call them what you will – or people who are working hard and want to get by in life.

We will make decisions as a Government on the overall package, but there will be a personal income tax package. The summer economic statement next week will set out the parameters in terms of how much the tax package and spending package will be. That will give us an opportunity to scrutinise how best to use them.

I am of the view, and the Government has shown this on a number of occasions, that the tax band is a helpful mechanism. As people's incomes rise, as they are doing, thankfully, or as people do a bit of overtime, get a promotion or work a few more hours, the tax man should not be taking a greater percentage of their money at such an entry point. We are below where other countries are, so I am sympathetic to that argument. On the issue of childcare, we have to fulfil the programme for Government commitment of getting to €200 per month per child over the next four years.