Budget 2026: Key Measures Coming Into Effect Today in Ireland

Budget 2026: Key Measures Coming Into Effect Today in Ireland

As 2026 begins, several significant measures from the Government’s Budget 2026 have officially taken effect today, 1 January, impacting social welfare, taxation, and employment across Ireland.

Social Welfare and Support Payments Rise

Today, most weekly social welfare payments have increased by €10, benefiting over 1.5 million recipients. Key updates include:

Child Support Payment: Now €58 per week for children under 12, and €78 for children aged 12 and over.

Fuel Allowance: Weekly payments rise to €38.

Domiciliary Care Allowance: Monthly payments increase from €360 to €380.

Working Family Payment: Eligible for Fuel Allowance from March, backdated to January 2026.

These changes aim to offset ongoing cost-of-living pressures for families and vulnerable groups.

Employment and Tax Changes

Minimum Wage

Ireland’s national minimum wage increased by €0.65 to €14.15 per hour, taking effect immediately. This change will particularly benefit full-time and part-time low-income workers.

Universal Social Charge (USC)

The ceiling for the 2% USC band has been raised to €28,700, ensuring minimum wage earners continue to pay lower USC rates and helping maintain disposable income.

Capital Gains Tax Entrepreneur Relief

The lifetime limit for qualifying disposals rises from €1 million to €1.5 million, providing relief for entrepreneurs and small business owners.

Benefit-in-Kind for Zero-Emission Cars

A new BIK category for zero-emission company cars has been introduced, with rates ranging between 6% and 15% of the vehicle’s original market value, incentivising greener company fleets.

Education Supports

Budget 2026 also sees increases in third-level education support:

SUSI Grants: Students living more than 30 km from their campus receive higher maintenance grants.

Postgraduate Fee Contribution: Increased from €4,000 to €4,500 for eligible students.

Measures Coming Later in 2026

While the above take effect immediately, several Budget changes will roll out later in 2026, including:

VAT Reductions on food, catering, and hairdressing services from 1 July.

Carer’s Allowance and Benefit adjustments from July.

Carbon Tax on home heating fuels, set to increase from 1 May.

These measures, though not effective today, are scheduled and will impact households, businesses, and the environment in the coming months.

Budget 2026, effective today, reflects the Government’s focus on supporting families, boosting incomes, and incentivising greener practices while gradually implementing longer-term fiscal measures.

Aaron Joyce, Newswire, LTT Media; Newsdesk; 1 January 2026