Ministers Jack Chambers and Paschal Donohoe will announce Budget 2026 later today.
Frantic negotiations between Government departments were reportedly going down to the wire last night.
So, what is likely on the cards, and who are going to be the big winners and losers?
Newstalk’s Political Correspondent Seán Defoe said one of the most controversial elements of Budget 2026 is the lack of an income tax package.
“Speaking to TDs yesterday, the things they were most worried about, one, was that there was no income tax package,” he told Newstalk Breakfast.
“That was a very difficult sell to middle income voters; people who are likely to turn out in a couple of weeks' time for the presidential election.
“But [also], people who generally back the Government parties in particular.”
While some budgets deliver financial stability, others can end in political disaster, as outlined in today’s Newstalk Daily podcast.
According to Seán, “the other potentially controversial one” in Budget 2026 could be tax cuts for builders and developers.
"The Department of Housing was in there very late last night, and some reporting in the Irish Times today that [the tax cuts] might go further indeed,” he said.
“[There may be] a further rate cut for the likes of cost-rental construction for example.”
Seán said that voters could be unhappy if tax cuts are extended this far, despite the fact that “there might be a very reasonable economic reason for doing that”.
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When it comes to “big ticket” items in Budget 2026, Seán outlined expected increases in social welfare and core rates including the State pension.
“That’s going to go up by €10 a week, was the final figure," he said.
“There is a childcare package in there, I’m told it will create hundreds – up to a thousand – more places.
“The Government wants to focus on places this year rather than cost.
“But there was still haggling happening late last night over whether there would be a reduction to cost for families as well.”
However, Seán said any potential reduction “won’t be in the order of previous years ".
"[It] certainly isn’t going to be down to the €200 committed in the programme for Government,” he said
#Budget2026 will be announced today 💰
Join Anton Savage from 12:50pm for live coverage and expert analysis, with thanks to @PwCIreland 📻 pic.twitter.com/Am7706Pc5h
— NewstalkFM (@NewstalkFM) October 7, 2025
Budget 2026 is expected to raise student grants, while student fees will be cut on a permanent basis by €500.
Meanwhile, a “step towards the abolishment” of the carers means test is also expected to be brought forward.
“The income disregard is going to be raised by €375 up to €1,000 per person, per week on that,” Seán said.
Small adjustments
Seán also said there will be a hike in the minimum wage, and “a small adjustment to the likes of the USE and the PRSI around that".
“To make sure people in those bands don’t end up paying more tax,” he said.
For live coverage and expert analysis of Budget 2026, you can listen to Anton Savage live on air from 12.50pm today on Newstalk radio.
Main image: Paschal Donohoe and Jack Chambers. Photo: Sasko Lazarov/© RollingNews.ie. 06/10/2025
