Major financial relief is arriving in Irish households today, January 1, 2026, as the Department of Social Protection rolls out a record-breaking €1.09 billion package of payment increases. Announced by Minister Dara Calleary, the measures—secured under Budget 2026—are specifically designed to combat child poverty and provide a buffer for the country’s most vulnerable citizens against persistent inflationary pressures.1
The scale of the rollout is unprecedented, with the January improvements alone set to benefit more than 1.5 million people, including pensioners, carers, and people with disabilities.2
Historic Support for Families and Children
The centerpiece of the New Year rollout is a massive investment in child welfare. Minister Calleary has enacted what is being described as the largest-ever increase in weekly Child Support Payments.3
- Rate Hikes: Payments for children aged 12 and over are rising by €16 (26%) to €78 per week, while supports for those under 12 increase by €8 (16%) to €58 per week.4
- Impact: Over 330,000 children will benefit from these targeted increases, which the government hopes will significantly move the needle on national child poverty targets.5
- Working Families: To support low-income earners, the Working Family Payment thresholds have been raised by €60 per week across all family sizes, making thousands more households eligible for the support.6
Broad-Base Increases for Pensioners and Carers
Beyond targeted child supports, the “core” social welfare rate is seeing its most significant permanent adjustment in years.7
- Core Weekly Payments: A universal €10 increase in maximum weekly rates takes effect today for all major schemes, including the State Pension, Carer’s Allowance, and Disability Allowance.8
- Domiciliary Care: Families caring for children with severe disabilities will see the Domiciliary Care Allowance rise by €20 to €380 per month, a move benefitting approximately 73,000 children.9
- Energy Costs: For the first time since 2022, the Fuel Allowance is increasing.10 The weekly rate rises by €5 to €38, supporting over 414,000 households through the remainder of the winter season.11
Employment and Community Schemes
The 2026 package also looks to bolster community-level employment and support for those entering the workforce.
| Measure | Beneficiaries | New Rate/Benefit |
| CE, Tús, & RSS Top-ups | 27,200 participants | +€5 per week |
| CE Material Grants | 810 Sponsor companies | +€1,000 per grant |
| Back to Work Dividend | Disability/Blind Pensioners | Extended eligibility |
| Wage Subsidy Scheme12 | Disabled workers13 | Expanded to 3 new groups14 |
The Road Ahead: 2026 and Beyond
Minister Calleary emphasized that while today marks a major milestone, further Budget 2026 measures will trigger throughout the year.15 These include the landmark extension of the Fuel Allowance to Working Family Payment recipients in March, and a massive 60% increase in the Carer’s Allowance income disregard scheduled for July.16
“This is about more than just numbers on a balance sheet,” Minister Calleary stated. “It’s about ensuring that as the economy grows, we are closing the gap for families and individuals who need our support the most.”
Government Buildings, Dublin By David Kernan
