Budget 2026 LIVE: Rise in core welfare rates and tax changes to be announced

There is a planned package of €9.4bn in Budget 2026 for finance minister Paschal Donohoe and public expenditure minister Jack Chambers to use

Jack Chambers and Paschal Donohoe outside Government Buildings ahead of the budget. Picture: Niall Carson/PA Wire

The Government is outlining its annual budget on Tuesday, amid scrutiny of its tax and expenditure priorities.

It has set parameters for a planned package of €9.4bn in Budget 2026, including €7.9bn in additional public spending and €1.5bn envelope for tax measures.

The Central Bank, Irish Fiscal Advisory Council (IFAC) and Economic and Social Research Institute (ESRI) have raised concerns about the risk of the planned budget package overheating the economy.

Finance minister Paschal Donohoe and public expenditure minister Jack Chambers will attempt to allay those fears as they reveal the budgetary measures in the Dáil from 1pm.

Follow all the action here from the Irish Examiner political and news teams.

12.52pm: Good afternoon, and welcome to the Irish Examiner's Budget 2026 live blog.

Stay with us for news and analysis across the day as the Government delivers the final budget before the next general election.

What do we know so far? 

Government sources have indicated there will be a 20% increase in the size of the housing budget, as well as a 20% boost for the disability budget.

For the Department of Justice, funds will be provided to hire 1,000 extra Garda, as well as a further 1,000 teaching posts created.

The 9% Vat rate on energy bills will also be retained.

Social protection minister Dara Calleary has secured an expansion to the fuel allowance as well as an increase to the payment levels.

Core social welfare rates will rise by €10 and rise in the child support payment for children under 12 has been confirmed, increasing by €8. It will increase by €16 for children over the age of 12.

For the Department of Housing, sources said funding has been secured to support the delivery of 10,200 new build social homes. 

They added there would be funding for 15,000 so-called “starter homes” through affordability measures and schemes.

Meanwhile, there will also be a measure to exempt profits from homes within cost rental schemes from capital gains tax.

This measure is set to come into effect tomorrow, on October 8.

Oireachtas webcasting is provided by the Houses of the Oireachtas Service, in association with HEAnet, Ireland's National Educational and Research Network.