As Budget 2026 approaches, households across Ireland are anxiously awaiting news on whether support measures will return to help with the ongoing cost-of-living crisis.
Last year's Budget delivered a €1.2 billion social welfare package, including one-off lump sums ranging from €100 to €400, double payments such as the Christmas bonus, and increases to weekly welfare rates. Additionally, every household received €250 off electricity bills in two €125 instalments, a relief many are hoping to see repeated this year, particularly as energy companies have recently announced price hikes.
However, recent announcements suggest that may not happen. Government ministers have put to rest rumours of a new €80 energy credit, warning households not to expect the kind of “giveaway” seen in previous years. This year’s €9.4 billion Budget is set to focus on long-term priorities such as housing, infrastructure, and core social supports, with €1.5 billion earmarked for tax cuts and €7.9 billion in spending.
Minister for Public Expenditure Jack Chambers admitted he could not yet say how much families would benefit compared to last year's estimated €1,000 per household, stating:
"A lot of our focus will be through the social protection system and investment in public services and how we improve the day-to-day experience of families. The nature of the tax package will be a little different this year."
Minister for Finance Paschal Donohoe was more direct, stating that the government “will not repeat” last year’s bonus payments and welfare hikes. That means measures such as cost-of-living lump sums, double welfare payments, and the two €125 energy credits are unlikely to return.
Households could see a modest boost of around €46 on gas and electricity bills as ministers have hinted at extending the lower VAT rate on energy bills for another year, potentially saving €20 on gas and €26 on electricity. Energy Minister Darragh O’Brien confirmed that while the lower VAT rate on gas and electricity will continue, no additional universal energy credits will be introduced. He said:
"There won't be any energy credits in the budget but we are looking at other measures targeted at those who need them most."
Speaking on RTÉ, Minister Chambers dismissed speculation about a new €80 energy credit, stating:
"I don't expect them to be part of Budget 2026."
Opposition parties have slammed the move, warning of “sky-high bills” for households. Sinn Féin leader Mary Lou McDonald called for three €150 energy credits in the upcoming Budget, saying:
"It's scandalous that they will withdraw the energy credits that so many households rely on and say 'tough! You're on your own'."
The debate over energy supports highlights the broader challenge of balancing fiscal responsibility with immediate relief for households facing rising costs. With Budget 2026 just around the corner, all eyes are on the government to see how it will support families amid the ongoing cost-of-living pressures.
@radionova100fm The Budget 2026 is coming out tomorrow - here’s what Dublin thinks the priorities should be #budget2026 #dublin ♬ original sound - Radio Nova 100
