The Minister for Finance has ruled out one off cost of living payments in next month’s budgets. 

After Russia’s invasion of Ukraine sent inflation soaring, energy credits and double social welfare payments were used to help people struggling with the cost of living. 

On Newstalk Breakfast, Paschal Donohoe said no such measures would be included in Budget 2026. 

 “The Taoiseach, the Tánaiste, Minister Chambers and myself have been very clear over the last number of months in saying that the kind of payments that were in place over the last number of years, the scale and the nature, we cannot do again,” he said.

“I accept this is a difficult argument to make because for many of your listeners at the moment, the cost of living is still such a challenge. 

“But the broader background is that even though prices are going up, they’re going up at a far slower pace than they were in recent years.” 

An energy bill on a phone. Picture by: PA Archive/PA Images.

The Fine Gael TD added that the Government needed to exert caution given that global politics is “now so uncertain”. 

“So, what we will do instead is what we have done in other budgets, which is to bring forward improvements and changes that are affordable, that can help with the cost of living and that we can sustain,” he promised. 

“But we really have to shift focus in this budget.” 

Infrastructure

In July, the Government launched the National Development Plan, which promised €275 billion in infrastructure spending over the next decade. 

Minister Donohoe conceded that infrastructure delays are proving a “real challenge” to the Irish economy and society. 

“The amount of money that we are investing in our economy in recent years has massively increased,” he said. 

“But because of how our population and our economy has grown, we need to do more. 

“That’s why Minister Jack Chambers in particular, working closely with myself, are leading this on behalf of Government.” 

New homes under construction. Picture by: Alamy.com.

Minister Donohoe added that many infrastructure projects are already underway, but that the Government still has “more to do”.  

“There are some kinds of infrastructure that I believe our country can and does do very well,” he said. 

“We’re very good at, for example, opening a new school building, building new roads. 

“The national broadband plan has been a huge success - on time, on budget, having a huge effect on where people can work and people can invest in our economy. 

“But I do accept that in other areas, for example, when it comes to our utilities, when it comes to how we support electricity, support water, even though we have very good organisations in those areas, we do need to invest more.” 

Main image: Jack Chambers and Minister Paschal Donohoe with Budget 2025. Picture by: PA Images / Alamy.