Budget 2026 has been announced.
This year’s package is €9.4 billion, with €8.1bn allocated for public spending, and a tax package of €1.3bn.
There is a surplus of €10.2bn this year, and of €5.1 bn next year.
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Newstalk’s Business Editor Joe Lynam said workers will be worse off due to a lack of change in tax bands and other increases.
“I would say the ordinary middle-income person in this country, which is the vast majority of people that pay income tax in this country, will say, ‘There’s sweet FA in it for us’,” he said.
“They will be paying higher fuel taxes and won’t see anything, and the tax bands haven’t been touched.
“Fiscal drag will mean that they will, in real terms, be costing more than they were last year.”
Main points:
Housing
€11.3bn has been allowed overall for housing, including two billion euro for social housing specifically.
The Government has allocated €7.3bn in capital funding, with €2.9bn going to new social homes and the second-hand acquisitions programme.
A further €1.2bn is for the starter homes programme, while urban regeneration, housing activation offices, and grants for the retrofitting of older people’s homes will also be prioritised.
An apartment building under construction in Palmerstown, Dublin, Ireland. Image: noel bennett / Alamy. 24 January 2022The Simon Community said the homeless crisis has been “ignored” by the budget.
Executive Director Ber Grogan says it’s “not right” for Government to be talking about the surplus when there’s record high homeless figures, and no funding provided for preventative measures.
“Not only is it the morally right thing to do to invest in prevention, it will actually be the economically prudent thing to do,” she said.
“So, that’s the piece of like, who are we holding back this money for?"
Childcare
Child support payments will increase by eight euro a week for under 12s, and by €16 for children over 12.
Working family payments will also rise by €60 per week.
The back-to-school clothing and footwear allowance will be extended to two and three-year-olds.
An extra 2,300 childcare places will also be brought in through the Building Blocks programme.
Empty daycare. Image: Picture Partners / Alamy Stock PhotoThe Federation of Early Childhood Providers has said many of its members are "hugely disappointed" by Budget 2026.
Chairperson Elaine Dunne acknowledged the extra €125 million euro for the sector, but said providers were hopeful more would be done.
“We’ve got 22 Whatsapp group across the country and they are on fire at the moment,” she said.
“There’s huge disappointment that there was no mention of the service providers whatsoever.
“We always feel like we’re portrayed as being greedy providers and it’s far from the truth."
Disability
An extra €600m has been allocated for the disability budget.
The Domiciliary Care Allowance has increased by €20 to €380 a month, while the Carer’s Allowance income disregard will also increase to €1,00 for a single person, and €2,000 for a couple.
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In terms of education, the Government has said that over 1,700 additional SNAs will be hired in the new year.
Among the 1,042 new teaching posts, 860 will be for special needs teachers.
Education
The Department of Education and Youth has been given €13.1bn for the next year.
More than 300 school building projects are expected to be progressed through the Department’s €1.6bn allocation for capital investment.
If delivered, these projects would bring about approximately 2,800 new places for special classes and special schools.
A school classroom, © PA Archive/PA ImagesSchool capitation rates have been increased by €50 at primary level, and €20 for post-primary schools.
When it comes to third-level education, student fees have been reduced by €500.
The Government also said that it will be creating 1,100 new places for the study of key health and social care professions.
Health
Minister Jack Chambers said the Department of Heath has received a “record level of investment” under Budget 2026, with a €27.4bn allocation.
Of the 12,500 additional public sector staffing positions announced, 3,370 will be within the health sector.
There will be an increase in 220 hospital beds, 280 community beds and 500 more nursing home places.
There will be an extra €1.7 million dedicated to extra home support hours, while increased staffing of mental health services will also be prioritised.
Other
A new derelict property tax will be created to replace the derelict sites levy - it will be charged at a rate of no less than 7%.
50c will be added to a pack of 20 cigarettes with a pro rata increase on other tobacco products.
Fuel allowance will increase by €5 weekly to €38, with eligibility extended to all recipients of the working family payment.
Main image: Jack Chambers and Paschal Donohue. Image: October 7, 2025. Niall Carson
