€25 Weekly Social Welfare Increase Urged Amid Child Benefit Cuts

The Irish Government is facing mounting pressure to increase weekly social welfare payments by €25, following the decision to eliminate universal cost-of-living cash payments in the upcoming Budget 2026. This situation has raised concerns for struggling households who are unlikely to receive new energy credits as the cost of living continues to escalate.

Minister for Finance Paschal Donohoe announced that one-time budget measures would be replaced with more permanent solutions. Meanwhile, Minister for Social Protection Dara Calleary has emphasized the need to ensure “nobody loses out” as changes to the Child Benefit program are discussed.

As of now, weekly social welfare rates, which include the pension, Jobseeker’s Allowance, and Disability Allowance, saw a €12 increase in Budget 2025, amounting to an annual rise of €924. For Budget 2026, these payments may receive a similar increase, potentially raising the maximum rate of the Contributory State Pension to €301.30 for individuals under 80 and €311.30 for those over 80. The highest rate of Jobseeker’s Allowance would reach €256.

Despite these adjustments, the think-tank Social Justice Ireland argues that the increases are insufficient. Research and Policy Analyst Michelle Murphy stated, “To bridge the gap, you need €25,” highlighting a disconnect between welfare rates and current living costs. She pointed out that welfare payments have historically not been linked to inflation or wages, leaving vulnerable populations exposed during economic downturns.

Concerns are particularly acute regarding the potential withdrawal of a second tier of Child Benefit, which could provide €285 to many families. Minister Calleary indicated that plans for this cash assistance would not be ready by the Budget announcement on October 7, 2025. The lack of action on this front has drawn sharp criticism from opposition leaders.

Labour Party leader Ivana Bacik called for immediate measures to combat rising child poverty, stating, “Families across Ireland are facing an emergency.” Bacik highlighted that one in five children, approximately 225,000, live in poverty, exacerbated by increasing costs of living and high energy bills.

She criticized the government for prioritizing tax cuts that fail to address the needs of those at the margins. “Parents are lying awake at night worrying about keeping the lights on, keeping the house warm, or being able to give their children a Christmas,” Bacik said, expressing frustration over stalled discussions regarding a cost-of-living emergency package.

Members of the opposition have echoed her concerns. Social Democrats spokesperson Aidan Farrelly criticized the government’s failure to include a two-tier Child Benefit in Budget 2026, suggesting it reflects a disconnect from the escalating child poverty crisis. He noted that this measure has been recommended for years yet remains unaddressed.

Meanwhile, Micheál Martin, the Taoiseach, has ruled out universal cost-of-living packages. He emphasized the need for targeted measures to assist low-income individuals, stating, “We’re going to do measures within the main budget to help people… but not universal.”

As discussions unfold, advocacy groups and think tanks are urging the government to adopt a comprehensive approach that includes not only increased welfare payments but also investment in social and physical infrastructure. Murphy pointed out that while welfare increases are essential, one-off investments in areas such as social housing and educational support are equally crucial.

The pressure on the government is mounting as it navigates these complex issues ahead of the budget announcement, with many calling for decisive action to protect the most vulnerable members of society from the ongoing financial crisis.