Ireland's Budget 2026: Boosting Social Welfare, Raising Minimum Wage, and Investing in Housing and Climate Initiatives
October 7, 2025
Ireland's Budget 2026 introduces a series of social welfare enhancements, including a €10 weekly increase in pensions and jobseeker's payments, a €0.60 raise in the minimum wage to €14.15 per hour, and a €1,000 extension of renters' credits until 2028 to help ease living costs.
The budget allocates over €28.9 billion to the Department of Social Protection, marking an increase of more than €2 billion to support social welfare programs.
Significant investments are planned for transport, housing, and health, with €4.7 billion supporting projects like DART+ and Bus Connects, €11.3 billion for housing including €2.9 billion for social housing, and €1.5 billion for health services, including 500 additional nursing home places.
The government will maintain reduced public transport fares, extend reliefs for electric vehicles, and invest in climate initiatives, including increased funding for ESB and Uisce Éireann.
The budget emphasizes energy and climate measures, such as extending lower VAT on utilities until 2028, increasing funding for energy upgrades, and supporting climate projects.
Fiscal prudence remains a priority, with a budget of €9.4 billion, strategic reserves being built through the Future Ireland Fund, and a cautious approach advised by the Irish Fiscal Advisory Council to avoid overheating the economy.
Funding for education includes adding 1,717 special needs assistants, over 1,000 new teacher posts, and reducing third-level college fees by €500, while health funding reaches €27.4 billion to expand hospital, nursing home, and mental health resources.
Additional funding is allocated for the Irish Defence Forces, Gardaí, and education workers, alongside a contentious cut to student contribution fees and a new Derelict Property Tax aimed at tackling urban blight.
The budget commits to delivering 25,000 new homes in 2026, supported by €19.1 billion in capital investments across transport, water, and health infrastructure.
Tax measures include a €0.50 increase in cigarette prices, while excise duties on alcohol remain unchanged, and funding is allocated for recruiting 1,000 additional Gardaí and rolling out nationwide body-worn cameras.
Energy and climate initiatives include extending lower VAT on utilities until 2028, increasing funding for energy upgrades, and investing in climate projects and infrastructure.
Fiscal measures also include a minimum wage increase to €14.15, a new derelict property tax, and support for green energy, arts, culture, and regional development, alongside increased excise duties on tobacco and auto fuels.
Summary based on 24 sources
Get a daily email with more EU News stories
Sources

The Irish Times • Oct 7, 2025
Budget 2026 main points: Renters’ tax credit extended, minimal personal tax changes
The Irish Times • Oct 7, 2025
How will welfare changes affect children in poverty, pensioners, single parents?
Evening Standard • Oct 7, 2025
Irish Government increases spending and scales back planned tax measures
RTÉ • Oct 7, 2025
At a glance: Here are the key points from Budget 2026