The Government has ruled out the continuation of once-off cost-of-living measures.
This year’s budget will see a “move away” from nonpermanent budget measures in addressing the cost of living, Tánaiste Simon Harris has said.
The Government has come under fire from the Opposition over plans to drop the once-off electricity credits that have helped households with energy costs in recent years. But Taoiseach Micheál Martin has promised that “there will be supports in the budget for those most in need”.
What could that look like? The most likely avenue is through the fuel allowance payment, with options to include increasing the weekly payment, extending the payment period or expanding eligibility.
We asked a renter what they want to see from Budget 2026. Here’s what Jane Cuppage (38), an insurance broker renting in Dún Laoghaire, had to say.
Jane pays €1,800 a month for a one-bedroom apartment, which took almost 18 months to find when she moved back from London.
How important is the Budget? The €9.4 billion budget day package only represents a fraction of what the Government spends.
It will cost around €120 billion to run the country this year, Jack-Horgan Jones reports.
This is divided between expenditure voted by the Oireachtas (€105 billion) and non-voted expenditure – which includes interest on the national debt and Ireland’s EU contributions.
Voted expenditure is divided between public sector pay and pensions (€33 billion), capital spending (€15 billion) and goods, services and welfare payments of €58 billion.
Among the departments, the biggest spenders are social welfare (€27 billion), health (€26 billion) and education (€12 billion).
The Minister for Finance has said the budget will be “fair and balanced”. In a post shared to social media yesterday, Mr Donohue said it would address the challenges of today while “investing in our country’s future”.
Good news for third-level students and parents. The budget is expected to include a €500 permanent reduction in the annual fee of €3,000.
The household income threshold for SUSI grants is also rising to €120,000, potentially benefiting another 20,000 students.
This year’s budget is due to be more restrained than last. Budget 2025 was marked by pre-election expenditure – with a €2.2 billion cost-of-living package of once-off measures.
Reporters Jack-Horgan Jones and Cormac McQuinn have the headline figures.
An overall package of €9.4 billion is expected to be contained in Budget 2026.
Of this, €7.9 billion will be dedicated to spending measures and there is available €1.5 billion for tax cuts.
Looking at taxation, a reduced 9 per cent VAT rate for restaurants is to kick in from July to help support jobs in the hospitality industry. Mr Donohoe said there would be no changes to personal income tax amid a focus on jobs and investment.
Core weekly welfare payments will rise by €10, while child support payments will increase by €8 for children under 12 and €16 for those 12 and over.
Income thresholds for the working family payments will go up by €60. Meanwhile, the income disregard for the carers allowance is expected to increase by €375 for a single person up to €1,000 and €750 for a couple, to €2,000.
It’s budget day at last. Minister for Finance Paschal Donohoe – followed by Minister for Public Expenditure and Reform Jack Chambers – will be setting out the details this year, at around lunchtime.
Here is what we expect so far, and this is how The Irish Times plans to cover the big event. Follow along throughout the day for the latest updates on what looks to be the tightest budget for a number of years.
Our reporters have asked a number of people what they want from the Government in Budget 2026. Have a look at what they have to say.
