Early clues on social welfare and cost of living changes in Budget 2026
Tomorrow's publication of the Summer Economic Statement is expected to provide valuable insights into the scale and focus of Budget 2026, setting the stage for what Finance Minister Paschal Donohoe will announce. The statement is expected to outline €30 billion in extra capital spending to boost infrastructure, housing and energy.
Unlike recent Budgets, which included one-off cost of living payments to ease financial pressures, this year's Budget is expected to take a different approach - one that leans more towards long-term solutions.
Taoiseach Micheal Martin has already made clear that while supports will be provided, the emphasis "quite simply has to be on transforming our infrastructure", signaling a shift towards sustainable investment rather than temporary relief measures.
Here's what has been revealed so far about the social welfare and cost of living changes expected in Budget 2026. Cost of living payments
It has been confirmed that one-off cost of living payments will not be part of this year's budget. Speaking on RTE's News at One last week, Minister for Public Expenditure Jack Chambers stated: "We will not be doing one-off payments, or one-off cost of living payments in this year's Budget. We had a series of Budgets in the last number of years, obviously through Covid, through the inflationary period where we responded."
He added that the Government wants to ensure decisions in Budget 2026 are "permanent, sustained and sustainable with the broader global uncertainty." Social welfare rates
While specific increases to social welfare rates have yet to be confirmed, Tanaiste Simon Harris has expressed reservations about uniform rises across all payments, particularly concerning jobseeker's allowance. Speaking earlier this month, he said: "I do always think there is merit in not looking at social welfare payments with uniformity across the board."
He elaborated: "I'm not convinced that you need to see as significant a rise in the dole as you do in the pension, for example, at the time where our country is at full employment, when there is lots of supports out there for people getting into work. When there are other supports out there for very many people who can't work for very many good reasons. That's my opinion. We'll thrash it out all that out at the time of Budget."
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