Budget 2026 Fails to Address Cost of Living Crisis for Families

The recently unveiled Budget 2026 has drawn criticism for its inability to effectively address the escalating cost of living crisis affecting numerous households across the country. Critics argue that the Government’s decision to lower the VAT rate for the hospitality industry prioritizes large corporations over the needs of ordinary workers and families.

While it is acknowledged that many local businesses, including small restaurants and independent shops, are in need of support, the blanket reduction benefits larger entities like fast food chains and hotel conglomerates. These companies continue to increase prices without passing savings on to consumers. Instead of implementing broad tax cuts, a more targeted approach addressing energy costs and workforce shortages could have provided meaningful relief.

According to the trade union Siptu, the focus of the budget on tax cuts for businesses does little to protect workers’ wages amid the ongoing inflation crisis. Tax bands have remained unchanged, resulting in decreased disposable income and purchasing power for many individuals. The extraordinary rise in living costs has left families struggling to make ends meet.

Since 2021, the cost of electricity has surged by 69%, while gas prices have more than doubled, increasing by 102%. Furthermore, several energy suppliers have recently announced further price hikes. Despite these challenges, Budget 2026 does not include one-off energy credits to alleviate the burden on consumers. Consequently, many workers may find themselves with no real wage increases, leaving them potentially worse off.

Mixed Reactions to Budget Measures

There is a notable provision in the budget that reduces VAT on apartments from 13.5% to 9%. This change is particularly significant for areas like Kilkenny, which has one of the lowest proportions of apartments in the housing stock nationwide. Advocates argue that this move is essential to address the urgent housing needs in the region.

Despite these measures, numerous advocacy groups, including those representing doctors, teachers, and people with disabilities, have criticized the budget for not doing enough to support their industries and communities. As these groups highlight, the lack of comprehensive planning for the future raises concerns for many families facing uncertain times.

With the cost of living continuing to rise and little in Budget 2026 to offer relief, many families are left with mounting worries and an unclear path forward. The budget’s shortcomings have sparked discussions about the need for more robust solutions to tackle the economic challenges facing everyday citizens.