Budget 2026: What you need to know
By Lisa Geraghty
Budget 2026 has been branded “sensible” by the Money Ministers Jack Chambers and Paschal Donohue.
Speaking to the Dáil on Tuesday, Minister Donohue, the Minister for Finance, explained that the €9.3bn package “will safeguard our future,” before adding that “any budget that attempts to do everything in a single go weakens our ability to be safe in a turbulent world.”
However, opposition parties were quick to call out the budget’s failure to support the ordinary person. Sinn Féin’s Finance Spokesperson, Pearse Doherty, described the budget as an “empty, hollow, dead end” for working people in Ireland, calling the government “out of touch.”
Here’s what you need to know about the €9.3 million package:
- The national minimum wage has increased by 65 cents, raising it from €13.50 to €14.15 per hour, and will come into effect on January 1st, 2026.
- €5bn has been allocated to the Department of Housing, including a reduction of 9% to the rate of VAT on the sale of completed apartments until December 2030.
- Renters’ tax credits have been extended to the end of 2028; renters can now claim a tax credit of €1000 for an individual or €2000 for a couple.
- The price of a packet of cigarettes will increase by 50 cents.
- The student contribution fee will be permanently reduced by €500, bringing it €2,500.
- VAT rate on hospitality will be reduced from 13.5% to 9% from July 2026. Hotels will be excluded from this measure, but large franchises such as McDonald’s will be included.
- Weekly social protection payments, including the State pension, will increase by €10.
- Child support will increase by €8 for children under 12 and €16 for children over 12; however, parents were left disappointed as the highly demanded second-tier child benefit scheme was missing from this year’s budget.
- An increase in Carbon Tax charges means motorists will now face an added cost of 2.5 cents per litre on motor fuels.
- The Department of Education and Youth will receive funding of €13.1 million, with plans to create 1,717 Special Needs Assistants (SNAs) and 1,042 new teaching posts.
- League of Ireland academies will receive €3 million in funding, falling short of the €4.45 million requested by the FAI.
Overall reactions to the budget have been mixed. Some, especially business owners, have complimented the “pro-enterprise direction,” while many others feel that the Budget failed to address more pressing issues, such as the lack of a cost-of-living package at a time when prices are constantly rising.
