Dáil Éireann Debate, Tuesday - 10 February 2026
180. Deputy Michael Murphy asked the Tánaiste and Minister for Finance the way in which the move from once-off cost-of-living supports to permanent measures has been assessed in terms of its impact on people with disabilities; and if he will make a statement on the matter. [1615/26]
View answerThe Government recognises the significant financial pressures experienced by households with disabilities, particularly amid the heightened cost-of-living conditions of recent years. In response, we have implemented targeted budget measures designed to support those most vulnerable.
As with previous budgets, the Department of Finance conducted a distributional analysis of Budget 2026 to examine the impact of proposed tax and welfare measures on a range of households. This analysis was conducted throughout the decision-making process, and an ex-post distributional analysis of the final budget package was then published in ‘Beyond GDP – Quality of Life Assessment’ on budget day.
When comparing income levels from the new tax and welfare measures in Budget 2026 with those arising from permanent measures in Budget 2025, the analysis finds that households with disabilities see higher disposable income gains (1½ per cent on average) than non-disability households (0.6 per cent on average). Lower income households affected by disability also see a larger increase in their disposable income than high income households.
Furthermore, the targeted measures introduced in Budget 2026 improved conditions for households with disabilities, with departmental analysis showing that they reduced the at-risk-of-poverty rate for these households by 3.8 per cent.
While the temporary cost-of-living measures provided support to many households, it was necessary to replace them with permanent changes to the tax and welfare system. This brings certainty to households and businesses, and sustainability to the public finances.
It is very important to stress that supports for people with disabilities constitute much more than just tax and welfare measures. Budget 2026 significantly strengthened disability services, increasing funding to over €3.8?billion, a 20 per cent rise. This investment will expand a wide range of vital services, including enhanced therapy, strengthened specialist supports for children, and increased residential care.
Budget 2026, provided for a €1.15 billion package of new social protection measures, which included a €10 increase in the weekly social welfare rates of payment, a Christmas bonus double payment to all persons getting a long-term disability payment, paid in December 2025.
It ensures people moving from Disability Allowance or Blind Pension to take up work will be able to retain their Fuel Allowance payment for five years. People getting Disability Allowance or Blind Pension who have children will be eligible for Back to Work Family Dividend when taking up employment and moving off those payments.
A €20 increase in the monthly Domiciliary Care Allowance payment bringing the monthly payment to €380.
Finally, it is important to remember that Budget 2026 is the first of this Government’s budgets - the first in a five-year set of budgets, and not everything can be achieved in the first year. I am confident however that, over the lifetime of this Government, we will continue to drive further improvements in living standards, particularly for people with disabilities.
