Dáil Éireann Debate, Thursday - 26 February 2026
23. Deputy Louise O'Reilly asked the Minister for Social Protection if, in light of the recently published consumer price index figures, his plans to alleviate hardship through increases to core welfare payments; the fuel allowance; or any disability-contingent payments; and if he will make a statement on the matter. [15413/26]
View answerThe published Consumer Price Index figures are closely monitored by my Department and my colleagues across Government.
The most recent Consumer Price Index (CPI) figures published by the Central Statistics Office show that prices for consumer goods and services in Ireland were approximately 2.7% higher in the year to January 2026 compared with the same period last year. This reflects ongoing cost pressures faced by households across a range of categories and underscores the importance of continued support through the social protection system.
In determining the Budget increases consideration was given to the most recent CPI data published by the CSO. Forward looking economic forecasts were examined at the time, including inflation projections. Broader cost of living pressures were also assessed, particularly in areas such as housing, energy, and food.
I am conscious of the impact that increases in the cost of living can have on households who rely on social protection supports, particularly older people, carers, disabled people and low income families. Budget 2026 measures were set at a level above the CPI rate that was available at the time of budget preparation.
This decision reflects the Government's clear priority to protect the most vulnerable households, and to ensure that social welfare recipients maintain, and where possible, improve their standard of living.
In Budget 2026, we increased core weekly rates by €10 per week, bringing the main personal rate for working age welfare payments to €254 per week, an increase of 3.9%, which is in excess of the rate of inflation. This followed a series of sustained increases in recent Budgets designed to protect the real value of payments.
In addition, the Fuel Allowance was increased by €5 per week to €38, representing a 15% increase. That increase was ahead of general inflation and energy price growth at the time and was specifically designed to assist households with heating costs during the fuel season.
Disability-contingent payments have also been strengthened. The increase in core weekly rates applies equally to Disability Allowance and other disability-related schemes. These increases now represent a cumulative rise of €51 per week since Budget 2021.
In summary, the increases in Budget 2026 were deliberately set above the CPI rate to ensure that those who rely on social protection are not left behind. Looking forward I will continue to monitor price developments carefully and will engage with stakeholders in advance of Budget 2027 and can assure the House that protecting the living standards of those dependent on social welfare will remain a key consideration in future Budget decisions.
