In the childcare sector, funding will be provided to create thousands of additional places through a building blocks initiative that will allow existing providers to expand their facilities, reports Irish Examiner.
Core social welfare payments will increase by €10 per week, and the fuel allowance will rise by €5, under measures included in Tuesday’s budget. Funding will also be made available to widen student grant eligibility, deliver thousands more childcare spaces, and boost the disabilities budget by €500 million.
The Government is preparing to unveil Budget 2026, which includes a VAT reduction for hospitality businesses, an extension of the 9% VAT rate on energy, and a VAT cut on new apartment construction. However, there will be no personal income tax package this year, reports Irish Examiner.
Late-night discussions continued on Monday as Social Protection Minister Dara Calleary worked to finalise his department’s allocation. According to sources, Mr Calleary had “dug in” to secure a €10 increase for pensioners and other recipients of core social protection supports.
Elsewhere, agreement was reached to continue the rent tax credit, which was previously set to expire at the end of 2025. The credit will stay at €1,000 for individuals and €2,000 for jointly assessed couples, at an expected cost of €350 million.
Mortgage interest relief will also be extended for another two years. However, the relief will be reduced by 50% in 2027, reports Irish Examiner.
In the area of childcare, support will be made available to fund thousands of new places via the building blocks programme, allowing current providers to apply for funding to expand their premises. Additionally, five new beds will be funded at the Oberstown youth detention facility.
Changes to be confirmed on Tuesday will see an additional 20,000 students become eligible for student grants. This is on top of a €500 permanent reduction in student contribution fees, first reported by the Irish Examiner last month, reports Irish Examiner.
Minister for Further Education James Lawless will broaden student grant access by increasing the income eligibility cap for SUSI to €120,000, potentially opening the door for over 20,000 students to receive support.
Arts Minister Patrick O’Donovan has secured a commitment to replace the pilot basic income scheme for artists with a permanent programme that will be integrated into his department’s regular funding. This comes despite opposition from the Department of Public Expenditure, reports Irish Examiner.
The plan is for the scheme to grow by 200 new recipients annually, building on the current base of 2,000 participants.
The health budget was finalised Monday night, with an additional €1.5 billion in funding — a 6.2% increase on last year’s figure. The health service is expected to overspend by €250 million this year, leading to an overall funding boost, reports Irish Examiner.
Sources indicate that Health Minister Jennifer Carroll MacNeill aims to prioritise “efficiency” within the health system and ensure that all funds are used effectively, with savings sought in particular areas.
Meanwhile, Education Minister Helen McEntee has secured a new Deis+ programme aimed at tackling the most severe levels of educational disadvantage. The budget will also include major investment in special education, with 860 new special education teaching positions and 1,700 additional special needs assistants.
A new therapeutic service will be introduced to provide direct supports to students in special schools, along with increased in-school funding for both primary and secondary schools, reports Irish Examiner.
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