The Government is fully aware of the challenges facing individuals and families and has consistently ensured that core social welfare rates have increased at or above the rate of inflation. For example, core rates increased by about 20% over the period between 2021 and 2025-more than the rate of inflation of about 18.5% over the same period. The increase of 4.1% on most payments, announced in Budget 2026, exceeded the increase in consumer prices reported by the CSO, of 3.2% over the 12 months to November 2025.
The Government is conscious of renewed global uncertainty, including recent geopolitical developments and conflict in the Middle East, which have contributed to volatility in energy markets and upward pressure on fuel costs. These developments have the potential to impact household budgets and the situation is being kept under close review.
This year, the Government will invest €28.9 billion in social protection measures. This includes more than €1.15 billion in new measures, comprised of an above-inflation increase of €10 per week in core rates and a range of significant targeted supports, including €320 million in measures aimed at alleviating child poverty.
The Budget package also provides significant supports to help householders with the cost of heating and other energy bills. The Fuel Allowance increased by €5 per week, or 15% - nearly three times the rate of inflation - and, for the first time, families receiving the Working Family Payment will qualify for the Fuel Allowance. In addition, people moving from Disability Allowance or the Blind Pension to take up work will retain their Fuel Allowance for five years.
These continuing, targeted measures, rather than once-off increases, provider greater certainty for recipients and ensure that supports are focused where they are most needed. While I do not propose to bring forward one-off payments for consideration at this point, I will continue to closely monitor cost-of-living pressures, including those arising from international developments.