Caitríona Redmond: Families go backwards as Paschal Donohoe peels an orange in his pocket

Soaring energy prices and food shrinkflation are battering even the most frugal of families — and Budget 2026 has done nothing for them
Caitríona Redmond: Families go backwards as Paschal Donohoe peels an orange in his pocket

'Irish Examiner' consumer columnist Caitríona Redmond says even families following her money-saving advice — such as cooking meals from scratch — are swamped by the rising cost of food and energy.

As TDs filled the lower house of the Oireachtas for the budget debate, I almost forgot what the normal vista of vacant seats in the Dáil looks like.

Instead of a swathe of brown shiny leather, there was a sea of colourful jackets and jaunty expressions; the collective knew they were being watched.

Some Government TDs have perfected the resting face, those who haven’t displayed disappointment and dissatisfaction which was quickly wiped when they realised they were in shot.

Meanwhile as the speeches continued, my messages on social media filled with dismayed parents.

There was no increase in child benefit, which has stayed at €140 per child per month since 2016, despite sharp increases in living costs.

Many had hoped for a rise but were deeply disappointed. 

It’s a payment that can be vital for households where money is an aspect of coercion and control: Did you know that it’s the only payment every family with school-age children receives, no matter their income?

Inflation multiplied by shrinkflation

If a family with two adults and two children spent an average of €200 a week on groceries in 2024, this year, they now need about €210 a week. 

Combine shrinkflation with inflation and that increased cost of shopping has rocketed far beyond the €10 extra per week.

Even allowing for the standard extra spend, a family with two children receives €280 a month in child benefit, but, over the past year, nearly two months’ worth of that has been eroded by higher food prices.

Families are effectively getting only 10 months of value of this important payment in 2025. Or potentially even less than that, once shrinkflation is taken into account.

The most recent Consumer Price Index figures from the CSO are for August. Looking back to August 2019, a shopping basket that cost €100 then would now cost €122.03.

The most frugal families are hit

There’s a method to reduce the weekly grocery spend to below average — cook from scratch. 

It’s something I invest a lot of time and effort in every week. 

The negative side is spending hours weekly cooking to put food on the table. 

You’ll also have to pay a higher cost of energy to cook and store budget friendly food.

Rising food and energy prices, with little action to reduce them, remain a major concern for all sectors of society. 

Benefit of keeping 9% Vat on energy has already evaporated 

Many of the recently-announced energy price increases have not yet taken effect and are not reflected in the figures. Costs may keep rising, and many households not eligible for social welfare have few supports available to them.

The 9% Vat rate on energy placed on hold now for a further three years is a welcome announcement.

However, that’s the existing rate — and with rising prices to contend with, that’s literally a cold comfort for hard-pressed families who received little to no benefit in Budget 2026.

While Paschal Donohoe virtually peeled an orange in his pocket, he announced a hike in the carbon tax rate which will pile a further 2c per litre onto fuel, effective at midnight. Not something the TDs in attendance in the Dáil will personally have to worry about, as they claim generous travel and accommodation allowances, while parking their fine bikes under a five-star bike shed.

“The Government cares about our people,” said Jack Chambers, with confidence, “And has designed a progressive budget…”

That’s not how consumers will feel in the year ahead as they feel the brunt of what they would term regressive.

Carbon taxes are certainly vital for our collective futures, but so is being able to heat and light our homes, particularly in the winter. Who knows, maybe the Government has decided it’s less a case of letting us eat cake, but more shelter under multiple blankets in the cold?

Bad budget for those who don’t get income supports

This is a poor budget for workers and families who don’t receive income supports. Once families pay rent or a mortgage, there’s not much less left for everything else. Cobbling cents together at the till and putting food on the table each day has, in the space of a few short hours, become much more difficult.

There was great hope, right up until last weekend, that the Government would hear people’s struggles to feed their families and heat their homes. Instead, their worries and concerns have fallen unheard and that’s a move that any political party would be ill-advised to do.

Last October’s budget, ahead of the 2024 general election, was more generous. Time will tell whether they pay the price for snubbing consumers when the next general election rolls around.

In the meantime, there will be less cake bought or eaten in Irish households in the year ahead as they try to make ends meet.

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