Budget 2026: Here are the changes to social welfare payments and when they kick in

Budget 2026 boosts social welfare by €2bn with increases for pensioners, carers and families

In Budget 2026, the Government announced a €28.9bn allocation for the Department of Social Protection, including an increase of more than €2bn on the previous year.

It provides a €10 weekly increase for people receiving social welfare payments, along with several other key measures.

Here are some of the major changes and when they will take effect:

In December 2026 

The Christmas Bonus, a one-off double payment, will be paid to almost 1.5 million long-term social welfare recipients ahead of the festive season.

From January 2026

€10 increase in weekly social welfare payments, including the State Pension.

Weekly Child Benefit to increase by €16 to €78 for children aged 12 and over, and by €8 to €58 for children under 12.

€5 rise in the weekly Fuel Allowance, from €33 to €38.

Working Family Payment income thresholds for all family sizes to increase by €60 per week.

The State’s first auto-enrolment pension scheme, MyFutureFund, will launch, helping 750,000 workers save for retirement.

From March 2026 

The Working Family Payment will qualify for the Fuel Allowance for the first time, backdated to January 2026.

From July 2026 

Carer’s Allowance income disregard will increase to €1,000 for a single person and €2,000 for a couple.

Carer’s Benefit income limit will rise by €375 to €1,000.

The Back to School Clothing and Footwear Allowance will be extended to eligible children aged 2 and 3.

From September 2026 

People moving from Disability Allowance or the Blind Pension to take up work will keep their Fuel Allowance for 5 years 

“The significant package I am announcing today balances payment rate increases together with a targeted package of measures aimed at supporting the most vulnerable in society,” Minister Dara Calleary said.

“I believe that the measures I am announcing today — with a total value of over €1.15bn — will make a huge difference to the lives of the people we serve and, through them to the communities, in which we all live.”