‘Prudent' Budget alert amid Trump threat as Government axe boosts of €1k per worker AND double Child Benefit in doubt
Taoiseach
has already
of Budget 2025's
whilst Finance Minister Pachal Donohoe said October's budget will be "more normal".
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Ireland's Minister for Finance Jack Chambers, and Ireland's Minister for Public Expenditure Paschal Donohoe after unveiling Budget 2025
Credit: REUTERS/Clodagh Kilcoyne
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Taoiseach Micheal Martin has ruled out a repeat of Budget 2025
Credit: Niall Carson/PA Wire
And The Irish Times this morning reported that Budget boosts worth up to €1,000 per worker have been dropped from October's plans.
Government leaders have agreed on the complete elimination of one-off payments such as energy credits, double welfare and Child Benefit double boosts.
The one-off cash boosts have benefited the average worker by about €1,000 each.
previously admitted that they are
or taxation decisions in Budget 2026 that "create new risks".
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Business group IBEC urged the government to take a "measured and strategic" approach to the budget later this year, calling for targeted investment in areas that enhance productivity and competitiveness.
Ibec said a Budget package of €3 billion - including €1.3 billion in additional infrastructure spending under the National Development Plan - is "appropriate for Budget 2026".
The lobby group warned that tariffs "post a serious threat to Irish business" and said the economic model Ireland has relied on for the past five decades is under serious strain.
US President Donald Trump
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Ibec's Executive Director of Lobbying and Influence told RTE Budget 2026 will predominately focus on the "stress and pressure" in our traded economy and the uncertainty of a potential global trade war.
'Trump's new tariffs are outrageous', slams EU lawmaker after Don slaps 30% on Brussels & it readies to fight back
Fergal O'Brien said if the 30 per cent tariff did become a reality, "it will be extremely damaging".
He said Ibec members also have "a lot of concerns" about what countermeasures will be introduced by the EU.
Minister Donohoe said the balance has to be struck between spending
, keeping public finances safe and spending money on immediate needs in Budget 2026.
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He said: "Every single budget that a Government brings forward and that the previous Government brought forward does find different ways of helping with cost of living challenges within our society.
"But we do have to get the balance right.
"We are also living in very uncertain times - we have to be careful with our public finances. We also need to find ways that we can invest more in our future."
BUDGET 2025'S ONCE-OFF LUMP SUMS
The Budget 2025 package - the
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It included two double
payments handed out before Christmas, €400 extra for carers and €300 for those on
Budget 2025 also provided an additional October cost-of-living double payment as well as the usual social welfare Christmas bonus.
However, the State has ruled out another budget bonanza filled with once-off lump sums, electricity credits and tax cuts.
Calls have been made for all weekly core
rates to rise by €25 and for a
to monthly Child Benefit cas
h in Budget 2025.
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But instead, the government confirmed it is focusing on a more targeted approach.
CHILD SUPPORT INCREASE DEMAND
The Society of Saint Vincent de Paul today
Rose McGowan, SVP National President, said over 45,000 more children across Ireland are now living in consistent poverty.
She said: "These are not abstract statistics – they represent children growing up in cold bedrooms, going to school hungry, and missing out on the social and educational experiences that are fundamental to a healthy childhood.
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'We know from our experience on the frontline that the right policy choices do make a difference – we saw it with the introduction of free schoolbooks and hot school meals.
"Budget 2026 must continue that momentum, with targeted structural reforms to ensure adequate incomes and real pathways out of poverty."
Social Justice Ireland has also called for the
for families, urging the government to increase Child Benefit by €50 and increase Child Support Payments by €6 and €15.
BUDGET 2026 PROPOSALS
THE Society of Saint Vincent de Paul has called for an increase in child supports, living alone and disability payments in Budget 2026.
The charity said temporary, one-off cost-of-living payments from the government provided critical short-term relief in recent years but targeted supports will give "support where it's most needed".
It has proposed a number of items for Budget 2026:
Increase and Index-Link the Income Disregard for One-Parent Family Payment and Jobseeker's Transitional Payment
Make childcare affordable by increasing the subsidy and threshold for the National Childcare Scheme
Ensure every child in emergency accommodation has access to a child support worker
Continue roll out of free hot school meals to all children and ensure ongoing evaluation of nutritional content
Increase provision of social housing stock and affordable cost rental homes
Introduce a homeless prevention budget amounting to 20 per cent of all homeless expenditure
Provide capital funding to address the long-term accommodation needs for those in direct provision with status to remain
Allocate €10 million to establish local, publicly run Early Childhood, Education and Care services
Make our state education system truly free by removing costs and charges to families including mock exam and correction fees, electronic devices and school uniforms
Benchmark SUSI grants and reckonable income levels against the cost of living
Increase Fuel Allowance by €9.50 per week
Extend the Fuel Allowance to recipients of the working Family Payment
Pilot a community energy advice service.
Increase funding to the Waiting List Initiative to clear the waiting list and backlog for the Assessment of Need process
Allocate sufficient funding to fully implement the National Therapy Service in mainstream education settings
Minister for Social Protection Dara Calleary has already confirmed his department is "working on" a
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However, the Fianna Fail TD has
A
The €140 flat payment would still be paid to everyone, regardless of income.
JOB LOSS FEAR
Social Justice Ireland has also said the payment rate of
aged 18 and 24 should be increased to the full adult rate.
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But Tanaiste
He indicated that the Government may
Harris today confirmed that Trump's
Speaking on his way into Government Buildings this morning, Harris said: "We're going to have to pull together in the hours and days ahead as we try to navigate our way through the latest scenario in relation to trade tariffs."
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Ibec today warned that Ireland needs to make the right choices to safeguard our competitiveness and ability to attract and retain business.
Ibec's Chief Economist and Head of National Policy, Gerard Brady, told RTE: "That means investing in productivity focused areas like infrastructure and committing to continue that investment regardless of the economic climate."
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Tanaiste Simon Harris is hoping to negotiate with the US on tariffs
Credit: Cillian Sherlock/PA Wire
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Budget 2026 is expected to have a more targeted approach than last year's spending
Credit: Getty Images - Getty
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