More than 1.5 million people in receipt of core weekly social welfare payments are to receive an average of €520 more this year as part of a €1 billion package.
The increases agreed under Budget 2026 will take effect from Thursday and will see a €10 uplift in the maximum rate of all core weekly payments.
This will benefit more than 1.5 million people, including pensioners, carers, those with disabilities, and jobseekers, according to the Department of Social Protection.
Weekly rates of the child support payment are also set to rise from January 1st by €16 to €78 for children aged 12 and over. Rates for children aged under 12 will rise by €8 to €58.
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“These are the largest ever increases to the weekly child support payments and will help alleviate child poverty by supporting over 330,000 children,” the department said.
Separately, the income thresholds for the working family payment will increase by €60 per week for all family sizes.
The department said this would benefit more than 48,000 families currently in receipt of the payment, while more households will become eligible due to the increase.
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More than 414,000 households in receipt of the fuel allowance will see a €5 increase, bringing weekly payments to €38.
The domiciliary care allowance, a monthly payment for children under 16 who have a severe disability, will increase from €360 to €380. The payment is currently made in respect of more than 73,000 children.
The total cost of the increases is €1.09 billion, and are in addition to the €370 million in Christmas bonus payments made in early December, said Minister for Social Protection Dara Calleary.
Mr Calleary noted that further budget measures will come into effect throughout 2026, including the extension of the fuel allowance scheme to families in receipt of the working family payment, and increases to the weekly income disregards for the carer’s allowance.
Meanwhile, a number of tax changes introduced in the Budget also take effect on January 1st. Though tax changes were minimal in October’s package some changes were made to continue to exempt those on the minimum wage from the highest rate of USC.
“As of 1 January 2026, the national minimum wage will increase by €0.65 per hour to €14.15 per hour," the Department of Finance said in a statement.
“In parallel, the ceiling for the 2 per cent USC rate band will increase by €1,318 to €28,700. 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.
“The USC concession that applies to those who have a full medical card and earn less than €60,000 per year is also extended so that the reduced rate of USC will continue to apply for a further two years until the end of 2027."
The rental tax credit and the mortgage interest relief credit, which were extended in the Budget, can also be claimed from January.
“All of these measures will have a positive impact on businesses, taxpayers and households,” Minister for Finance and Tánaiste Simon Harris said in a statement.
“This is the first of five Budget which this government will deliver. We are committed to delivering for our citizens in the years ahead and over the course of the next four Budgets as set out in the Programme for Government.”
