These are the social welfare changes that will come into effect from January 1

These are the social welfare changes that will come into effect from January 1

The State pension and the minimum wage will increase from today.

The national minimum wage increases to €14.15 from today, as part of a number of budget measures kicking in to start the new year.

It also includes a €10 rise in the maximum rate of most weekly social welfare payments, such as the State pension which takes effect from this month.

The child support payment weekly rate will also increase, by €8 to €58 for children under 12 and by €16 to €78 for children aged 12 and over.

The fuel allowance will also rise by €5 to €38 a week from this month, while the working family payment income thresholds for all family sizes will increase by €60 a week from January 2026.

These and the increase of 65c to the minimum wage were among the key measures of Budget 2026 announced by now-former finance minister Paschal Donohoe and public expenditure minister Jack Chambers in the autumn.

To coincide with the minimum wage rise, the 2% rate band limit for USC increases to €28,700 from €27,382 from today.

"This increase will ensure that full-time workers on the minimum wage will remain outside the top rates of USC, while also giving a modest benefit to all workers whose income is above that amount,” Mr Donohoe said at the time.

And, while the working family payment will be extended to be a qualifying scheme for the fuel allowance from March, this will be backdated to January 2026.

There is a slight reprieve for renters also, as the renters tax credit — which had been due to expire from December 31 — has been extended for a further three years to the end of 2028.

Meanwhile, the landmark Government scheme to auto-enrol workers into a retirement savings scheme if they are not paying into a pension already starts today.

It has said MyFutureFund will help almost 750,000 workers begin to save for their retirement. In 2026, the Government will contribute €154m to the fund.

However, several other of the key Budget changes will not apply until later in the year.

This includes the reduction in the VAT rate for the hospitality sector and hairdressers from 13.5% to 9% after sustained lobbying from these sectors, which said it was needed to make their businesses viable.

The increase in the income disregard for the carer’s allowance does not take effect until July. When it kicks in, it will mean an increase to €1,000 for a single person, from €625, and to €2,000 for a couple, up from €1,250.

Furthermore, the measure allowing people moving from disability allowance or the blind pension to take up work but keep their fuel allowance for five years will take effect in September 2026.

Speaking after the budget was announced, social protection minister Dara Calleary said: “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.

“I believe that the measures — 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.”

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