Urgent Update: Budget 2026 Cuts Expected Amid Welfare Changes

UPDATE: In a significant shift, the Irish government is preparing for a €9.4 billion Budget 2026, set to be announced on October 7, 2025. Officials confirm that this year’s budget will prioritize long-term investments in housing, infrastructure, and essential social supports rather than one-off bonuses that have characterized previous budgets.

Minister for Public Expenditure Jack Chambers warned families not to anticipate a “giveaway” Budget, stating that the focus will be on gradual increases to existing social welfare schemes instead of lump sum payments. “A lot of our focus will be through the social protection system,” he said, highlighting that supports will remain available to families despite the absence of substantial cash boosts.

Minister for Finance Paschal Donohoe was clear about the government’s direction, asserting that they “will not repeat” the bonus payments and welfare hikes seen last year. The budget will include €1.5 billion in tax cuts and €7.9 billion in spending, but specific benefits for families remain unclear. Last year, households received an estimated €1,000 in benefits, which may not be replicated this year.

The anticipated two-tier Child Benefit scheme, which proposed payments of approximately €285, has been shelved as it is still under review. Donohoe addressed concerns, stating, “My officials are doing a lot of work on it,” emphasizing the need to ensure that no family loses out with the introduction of new payment structures.

As the government prepares to unveil the full details of Budget 2026, reports indicate that there will likely be no increase in Jobseeker’s payments this year, a move that could impact many households relying on these supports. Last year’s budget provided various one-off supports, including the Working Family Payment and double payments for Child Benefit, leaving many wondering what this year will hold.

Stay tuned as the situation develops and the full budget details are confirmed next week. For the latest updates, subscribe to our newsletter and stay informed.