Budget 2026 Announcement Set for October: Changes Ahead for Families

As the countdown to Budget 2026 begins, the Government has earmarked a total of €9.4 billion for the upcoming announcement scheduled for October 7, 2025. Unlike the previous year’s budget, which featured a record-breaking social welfare package, this year’s announcement will not include one-off payments, reinforcing a shift towards more sustainable fiscal policies.

Finance Minister Paschal Donohoe and Minister for Public Expenditure Jack Chambers will present the Budget Statement at Dail Eireann around midday. This will be broadcasted live, allowing the public to follow the developments as they unfold. The event will be available on RTE One and the RTE News channel, as well as on Oireachtas TV.

Anticipation surrounds the expected changes to various social benefits, particularly the Child Benefit, which is projected to undergo a significant adjustment. A second-tier payment, initially considered for families, is now off the table for this budget cycle. Dara Calleary, a key government figure, indicated that while discussions continue regarding a secondary child benefit payment, it will not be ready in time for the October announcement. Instead, Taoiseach Micheal Martin stated that alternatives will be introduced to support low-income families, though these may not take the form of a new structured payment.

One area that is expected to see an increase is the Rent Tax Credit. Currently set at 20 percent of rent payments, this credit is capped at €1,000 for individuals and €2,000 for couples. The coalition government had previously pledged to raise the credit to €1,500 per individual and €3,000 per couple during their election campaign.

Another notable exclusion from Budget 2026 will be the Energy Credits, which had previously offered households financial relief. The absence of these credits means households could miss out on approximately €250. Jack Chambers confirmed that these once-off payments would not be part of this year’s budget, although the government plans to extend the lower VAT rate on energy bills for another year, translating into modest savings for families.

Speculation regarding a potential increase in the minimum wage is also prominent. Currently set at €13.50 per hour, an increase of around €0.55 is expected, bringing the rate to €14.05. Advocates for higher wages, such as People Before Profit’s Paul Murphy, argue that the current minimum wage falls short of covering essential living costs, calling for a more substantial increase.

Additionally, the government is set to announce a permanent decrease in student fees by €500. This follows a temporary reduction of €1,000 over the past three years. Critics, including Laura Harmon, Labour’s spokesperson on Further and Higher Education, argue that this move still results in higher costs for students compared to previous years, especially in light of rising living expenses.

As the announcement date approaches, the government urges citizens to manage their expectations regarding the upcoming budget. The emphasis on prudent financial management reflects the ongoing economic challenges and the need for a sustainable approach in fiscal planning.

The anticipated adjustments in Budget 2026 signal a pivotal moment for families and individual taxpayers, as the government navigates the complexities of economic recovery while addressing the diverse needs of its constituents.