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Budget 2026 - Rise in social w...

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Budget 2026 - Rise in social welfare, hike in cigarettes, cut to student fees and rise in petrol and diesel prices

Lana O'Connor
Lana O'Connor

03:18 7 Oct 2025


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Core welfare rates are to rise by 10 euro per week, but there's no income tax package in Budget 2026.
Ministers Paschal Donohoe and Jack Chambers have delivered their Budget speeches over the past two hours.
Lots of announcements today but very little by way of goodies for your average worker.
There is no widespread income tax package beyond a small adjustment to the USC to account for a 65c per hour rise in the minimum wage.
The VAT rate cut to 9% for gas and electricity is to become a feature of the political landscape, extended to the end of 2030.
But carbon taxes will also rise from tonight on car fuel - and there are no energy credits this year.
No cut to the cost of childcare was announced, but there was a commitment to fund extra places through construction works.
The VAT rate for the sale of new apartments has been cut, while there will be a new Derelict Property Tax.
The bank levy has been extended and the back to school clothing allowance will be provided to two and three year olds.
A Christmas bonus will be paid on social welfare, while a pack of cigarettes will increase by 50c, and students will pay more for student fees than last year, but there is a permanent reduction in the student fee rate to 2,500 euro.
All in all, an announcement that rolls over a lot of the measures from last year's budget, without many new benefits for the average worker.

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