Social welfare and tax changes come into effect

A range of social welfare and tax changes announced in Budget 2026 come into effect from today.

There will be a €10 increase in the maximum rate of all core weekly payments, the fuel allowance will rise by €5 a week, and there will be also be increases in the working family payment thresholds and the domiciliary care allowance.

Minister for Social Protection Dara Calleary said over €1 billion worth of payment increases come into effect from today.

"The measures I am announcing today are in addition to the €370 million in Christmas Bonus payments made in early December," Mr Calleary said.

"There will also be further Budget measures coming into effect throughout 2026, including the extension for the first time of the fuel allowance scheme to families in receipt of the working family payment, the extension of the back to school clothing and footwear allowance to two and three-year-olds, and the largest ever increases in the weekly income disregards for carer's allowance," he added.

The taxation measures that take effect from today include changes to the USC to account for an increase in the minimum wage, extensions of the rent tax credit and mortgage interest tax relief, as well as changes to vehicle benefit-in-kind and vehicle registration tax.

Tánaiste and Minister for Finance, Simon Harris said the measures will have a positive impact on businesses, taxpayers and households.

"This is the first of five Budgets which this government will deliver," Mr Harris said.

"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," he added.