Dublin, 7 October 2025 — Minister for Social Protection Dara Calleary TD has unveiled a €1.15 billion package of new measures under Budget 2026, aimed at tackling child poverty, supporting carers, and strengthening income supports for pensioners, families, and people with disabilities. In total, €28.9 billion will be allocated to social protection next year.
Key Measures
- Child Poverty Supports: Over €320 million targeted at reducing child poverty, including the largest ever Child Support Payment increase — €16 per week for children aged 12+ (to €78) and €8 per week for under-12s (to €58).
- Weekly Payment Increases: A €10 rise across most core social welfare payments, benefitting pensioners, carers, lone parents, and people with disabilities.
- Carer’s Allowance Reform: Record increases in the income disregard — up to €1,000 per week for a single person and €2,000 for couples — allowing more households to qualify for support.
- Fuel Allowance: Increased by €5 to €38 per week from January, with eligibility extended to families on the Working Family Payment.
- Disability Supports: People moving from Disability Allowance or Blind Pension into work will retain the Fuel Allowance for five years.
- Back-to-School Support: Clothing and Footwear Allowance extended to two- and three-year-olds.
- Christmas Bonus: A 100% bonus to be paid in December 2025 to 1.5 million long-term welfare recipients.
- Retirement Savings: Launch of MyFutureFund, an auto-enrolment scheme beginning January 2026, with the State contributing €154 million in its first year.
Minister’s Statement
Minister Calleary described the package as a balanced mix of broad payment increases and targeted supports:
“This Budget delivers the largest ever increases in Child Support Payments and record reforms for carers. It is designed to protect the most vulnerable, while also supporting families and workers to plan for the future.”
Broader Impact
The measures are expected to benefit hundreds of thousands of households, with particular emphasis on child poverty reduction, energy cost relief, and long-term financial security. Analysts note that the package reflects a shift from once-off cost-of-living supports toward permanent structural increases in welfare spending.
Sources: Department of Social Protection; Gov.ie Budget 2026.
Minister-Dara-Calleary-with-Mayo-Association-of-Philadelphia-Picture-by-Jeff-Meade
