By Anita McSorley
Copyright irishmirror
With Budget 2026 just around the corner, speculation has been rife over whether or not the Government will deliver another round of lump sum payments to help households struggling with the rising cost of living.
Last year, thousands of people across Ireland benefited from a series of once-off boosts, from the Working Family Payment and Fuel Allowance, to the Living Along Increase and Domiciliary Care Allowance – with payouts ranging from €100 to €400. There were also increases to the weekly rates of many payments, along with a Christmas Bonus.
Many were hoping for similar handouts this year – but the Government has now put those rumours to rest.
Taoiseach Micheal Martin confirmed earlier this week that there will be no “universal” cost of living payments included in the upcoming Budget, which is due to be unveiled on Tuesday, October 7.
While acknowledging that the “cost of living is a huge issue”, he said the government has “already taken measures in terms of that” in the Budget.
He told Newstalk Breakfast: “We’ve got to try and get public finances within some reasonable sustainable framework. We’re going to do measures within the main Budget to help people, particularly people on low incomes and people who will be impacted more.
“It will be targeted measures, but not universal – and also, we’re investing in the future. We are putting a lot more money into the capital side of the Budget in terms of housing, but also in terms of roads and public transport.”
Instead of lump sum payments, Budget 2026 is expected to focus on long-term investments, including housing, infrastructure and public transport. A VAT cut for the hospitality sector has also been discussed, potentially reducing VAT from 13.5% to 9%, however officials are discussing whether to delay this until July 2026.
Other anticipated measures include potential extensions to the Help to Buy and First Home Scheme until 2030, and discussions around the Rent Tax Credit, which is due to expire in December.
The full details of Budget 2026 will be revealed when Ministers Paschal Donohoe and Jack Chambers officially present the financial package on Tuesday, 7 October.
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