Major €506 Child Benefit & €25 welfare hike alert for Budget 2026 amid ‘important most vulnerable not forgotten' warning
Finance Minister
2
Micheal Martin has ruled out a repeat of 2025's €2.6 billion cost-of-living boon
Credit: 2025 PA Media, All Rights Reserved
2
Susanne Rogers believes social welfare rates should increase to prevent vulnerable people being left behind
While Taoiseach
It is understood Government leaders have agreed to eliminate one-off payments such as energy credits and
But where does that leave those hardest hit by the
Here, Susanne Rogers, of Social Justice Ireland, says
READ MORE ON BUDGET 2026
AS talk of
A policy of one-off cost-of-living measures in recent budgets may have provided temporary relief to low-income households, but even with those measures, almost 12 per cent of the population (630,000 people) are living below the
Without those one-off measures, more than 758,600 people would be living in poverty.
Most read in The Irish Sun
Government must use
SOCIAL WELFARE
: Government made many promises in the Programme for Government.
Give me a break' - Watch shock moment Simon Harris & Pearse Doherty clash in fiery spat over cost-of-living crisis
Key among them is the commitment to deliver progressive budgets, meaning that those on the lowest incomes are protected.
The Minister for Social Protection must benchmark social welfare rates to 27.5 per cent of average weekly earnings.
This requires a €25 increase in weekly
This is even more critical in light of the increases to essentials such as rent, energy costs and food prices.
ELDERLY STRUGGLING
OLDER PEOPLE
: More than 106,000 older people struggled to make ends meet in 2024, an increase of 64 per cent in a year.
Without the temporary measures, one in five older people would have been living below the poverty line.
This highlights how vulnerable older people are, due to their reliance on a fixed
Contributory and Non-Contributory Pensions by €25 per week and universalise the payment, while increasing the living alone allowance by €10 per week.
HIGH RISK OF POVERTY
FUEL ALLOWANCE
: Increase this by €10 per month and extend the payment to those receiving the Working Family Payment.
This also unlocks secondary benefits such as access to retro-fitting grants.
DISABILITY
: The Programme for Government makes welcome commitments on a cost of
The group with the highest risk of poverty and some of the highest rates of deprivation are those unable to work due to long-term illness or disability.
To deliver on its promise, Budget 2026 should introduce a cost of disability allowance at €20 a week.
BOOST FOR CARERS AND CHILDREN
CARERS
: Carers provide a huge service to the State.
There are over 299,000 people in Ireland providing unpaid care each week, an increase of 53 per cent in six years.
To acknowledge and support them, at the very minimum, Government must expand the Free
It must increase the annual Carer's Support Grant to €2,150, implement an independent review of Carer's Allowance, increase Domiciliary Care Allowance to €385 per month, and pilot a Universal Basic Services and a Universal Basic Income Scheme for Carers at a cost of €10million, in line with the Programme for Government Commitment to a Carers Guarantee.
KEY ROUTE
CHILDREN
: Child benefit remains a key route to tackling child poverty.
In 2024, more than 190,000 children in Ireland were living in poverty, a statistic that should shock us all.
Government should increase Child Benefit by €506, increase the Child Support Payment for under-12s by €6 and for those aged 12 and over by €15.
It should also introduce an additional two weeks' paternity and
Life on a low income is the norm for a large number of people in Ireland. But it shouldn't be.
Government must use Budget 2026 to change this trend and improve the standard of living for vulnerable households.
The first step is setting adequate social welfare rates.
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RTÉ News
13 hours ago
- RTÉ News
First kite of pre-budget season flew over Leinster House
Bird watchers sometimes herald the sighting of the first swallow of the year as the start of spring. And, not to be outdone, political anoraks have a similar phrase too. The first kite of the pre-budget season flew high and mighty over a quieter than usual Leinster House this week, as the beginning of the Dáil's summer recess was interrupted by a potentially serious political row gliding into view. Not for the first time, it involved a once cast-iron pre-election promise whose carefully choreographed landing now risks becoming a victim of some not exactly unexpected post-election economic turbulence. And, not for the last time, the planned flight trajectory could yet be replaced by an all too public nose dive as the Coalition checks its political radar for signs of how to navigate its way between two competing financial priorities. Hospitality tax cut The reason for the situation is a Programme for Government promise which is now at real risk of being delayed. In the January document, which outlines what Government intends to do in power, the Fianna Fáil-Fine Gael-Independents Coalition confirmed that the existing 13.5% hospitality VAT rate would be reduced. That commitment, which was one of Fine Gael's key commitments in last November's General Election, was widely seen as indicating but did not explicitly point to this October's Budget as the moment the 13.5% rate would be cut to 9%. Such a move would support struggling restaurants, bars, cafes, pubs and hotels, and therefore help protect jobs. "Our Budget decisions could change depending on the economic environment we find ourselves in." But its near €1 billion price tag would mean less financial space for cost of living supports for the wider pubic, an issue that was made crystal clear as Government outlined its immediate economic plans this week. During a press conference at Government Buildings on Tuesday, Taoiseach Micheál Martin, Tánaiste Simon Harris, Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers announced the Coalition's National Development Plan and Summer Economic Statement. The former outlined a €275bn capital projects war chest for the coming decade, including aspirational promises and dazzling numbers like €36bn for housing, €22bn for transport infrastructure such as the long-delayed Dublin Metro, and almost €10bn for health. But the latter was more pragmatic, detailing in practical terms how much money Government actually has to play with in its coffers right now - and, specifically, space for €1.5bn worth of tax cuts in Budget 2026. The figure may seem like a lot, and it is, but it still does not pay for everything voters want. And, inevitably, that means difficult choices for the coalition to make, including when it comes to promises previously given. Despite both Mr Martin and Mr Harris saying in recent months that the cut will happen, Mr Donohoe told reporters that the expected hospital VAT reduction from 13.5% to 9% was not as certain as previously indicated. Rarely one to misspeak, Minister Donohoe explained that if the hospitality VAT rate is reduced it is important "to be open" about the fact "trade offs" with other sections of society may be necessary. "I have always made clear my intention with regard to that [the hospitality VAT cut]," he said. His use of the word "intention" rather than anything stronger peaked the interest of attending reporters. "But I have also said there are trade offs, and there are consequences to that," he said. "And there are therefore other things that we are not going to be able to do. "If you were to bring forward a tax package that was to fund a full year measure that was in relation to the VAT, the cost of that would be nearly a €1bn." "And then if I was to add to that other measures we've done in the past, we would have a tax package that is far bigger than what I believe would be safe," he said. He added: "Our Budget decisions could change depending on the economic environment we find ourselves in." A pre-budget kite, in other words. And one that has caused if not a split, then certainly some friction, within the Coalition as competing political priorities have emerged. Internal Coalition friction While Minister Donohoe's comments were likely designed to point out the reality of the dilemma for Government rather than specifically rule out the hospitality tax cuts this year, they did open the door to the prospect within at least some sections of the coalition. By Wednesday, several Government sources had indicated privately that the cut should be delayed until July 2026, with Fianna Fáil members - including the wily long-time Limerick City TD Willie O'Dea - among those to publicly nudge forward the argument. Speaking on Friday on RTÉ's Morning Ireland programme, Deputy O'Dea said given the limited scope for tax reductions in the upcoming budget, he would "like to see it [the €1.5bn in available tax cuts] more equitably divided", with "an increase in tax credits and tax bands in line with inflation" his priority. Asked if this is because it would be difficult to convince voters to support helping the hospitality sector first, given a disputed reputation for price gouging by some businesses in that sector, Deputy O'Dea said: "It's not just a question of would it be hard to sell to the public, it's would it be good for the economy." Responding to suggestions of friction in the Coalition over the situation, he added: "I wouldn't describe it as friction, people have different views and that's what Coalition government is about." "I don't understand what kind of kites the Government are flying in relation to this cut for the hospitality industry, the Government are sewing massive seeds of confusion on this yet again." Deputy O'Dea's view was echoed privately by numerous Fianna Fáil TDs, and a smaller number of Fine Gael colleagues, who questioned how prioritising help for businesses instead of cost of living supports for the wider public might play out. And senior Government sources did little to kill off the suggestion when asked. But Fine Gael TD and Minister for Enterprise and Tourism Peter Burke - the politician responsible for the sector - had a different view during a hastily organised press briefing at Government Buildings on Thursday. Asked if he would acknowledge the hospitality VAT tax rate cut will now be delayed until next summer, Minister Burke responded: "Absolutely not acknowledging that, any negotiations will form part of the budget. "We're now still in July and it's very important to note the Budget will consider all options in every different sector." Opposition criticism The opposition, it is fair to say, were less than impressed over the apparent confusion over whether the hospitality tax cut would still go ahead on 1 January or be delayed until at least next July. Labour TD Duncan Smith said bluntly: "I don't understand what kind of kites the Government are flying in relation to this cut for the hospitality industry, the Government are sewing massive seeds of confusion on this yet again." That view was shared by other opposition TDs, including Sinn Féin's Donnchadh O'Laoghaire who said the Coalition needs to find a way to help both the hospitality sector and the wider public through cost of living supports. And it was echoed too by non-political groups representing those in the sector, which became locked in a war of words over what should happen next. Responding to the watering down of the previous tax cut promise, Restaurants Association of Ireland Chief Executive Adrian Cummins said: "If the VAT rate doesn't reduce to 9% from January 1, you'll see more and more closures" and resulting job losses, noting more than 200 restaurants have already closed this year. However, the view was countered by the Irish Congress of Trade Unions general secretary Owen Reidy. "The proposal to cut the VAT rate at a time of huge economic uncertainty flies in the face of all available evidence, and would amount to nothing less than economic vandalism," he said. "The Government has identified many laudable priorities as part of its programme for Government: housing, reductions in child poverty, and investment in disability services. "Given that ministers have been giving serious warnings about economic uncertainty, why would they prioritise a corporate handout costing almost €1bn?" Government dilemma That latter point goes to the heart of the difficulty now facing Government, and in part helps to explain the early nature of this week's at times contradictory pre-budget kite flying. While there is a strong argument for the need to protect businesses, and therefore jobs, in the hospitality sector during a period of intense global financial uncertainty, few politicians would want to be seen to be doing so at the expense of supports for households during that same economic turbulence. In that context a calculated delay to the hospitality VAT rate cut plans makes some sense, as it would allow Government to continue to argue it will - eventually - keep its promise while giving itself more short-term financial space to protect the wider public. That plan, however, comes with a significant catch, in that the hospitality sector is insistent a delay to the tax cut will see people lose their jobs. But, more than one Government TD has privately noted this week, not delaying the tax cut in order to have more space for wider public cost of living supports would put households at risk and give opposition parties an obvious line of attack the coalition could do without. The first kite of the pre-budget season has now soared into view. Depending on which way the economic and public wind blows, it could yet lead to an unexpectedly bumpy political ride.
The Irish Sun
a day ago
- The Irish Sun
Major car dealership group with more than 100 UK sites ‘threatens job losses' as firm blames Reeves' tax raids
A MAJOR car dealer giant with over 100 UK sites is planning job cuts despite reporting hefty profits. Group 1 Automotive will 'streamline' operations by cutting costs and axing duplicate roles. Advertisement 2 Group 1 Automotive UK has been restructuring its business since August last year Credit: Alamy The dealership doubled its gross profit in the first half of 2025, with sales soaring 94% - boosted by a stronger sales mix and improved aftersales operations, according to New car sales shot up 90% to 32,960 units, while used vehicle sales rose 89.5% to 41,580 units. Group 1's revenues skyrocketed from £1.18bn to £2.3bn in the first half of the year - with gross profit jumping 109.6% to a whopping £313m. The company also reported its UK gross margin improved from 12.6% to 13.6%. Advertisement Read more motors news This performance comes amid Group 1's ongoing restructuring efforts since August last year, which included integrating Inchcape UK's dealerships after a £346m deal last year. The shake-up is expected to put 370 jobs at risk as of the end of June this year, though exact numbers have yet to be confirmed. A spokesperson for Group 1 said: "In line with other retailers, we continue to face cost headwinds relating to tax increases announced in the last Budget, and in response we have identified opportunities to remove duplication, streamline processes and decentralise certain roles to drive efficiencies across the business." In the second quarter, Group 1 shut down two Mercedes-Benz dealerships as part of efforts to improve its UK portfolio. Advertisement Most read in Motors Breaking The group took a $7.6m (£6.1m) hit tied to layoffs and dealership closures, and has spent $18.7 million (£14m) so far this year on restructuring its UK operations. Daryl Kenningham, Group 1 president and CEO, said: 'The U.K. market continues to be challenging in terms of industry volumes and with BEV mandate-related margin pressures.' Watch Tesla test self-driving cars on London streets as it passes famous landmarks He added: 'Integration efforts are largely complete and most U.K. brands are performing to expectations, with positive momentum anticipated in the second half of the year. "SG&A leverage improvement remains a focus in the U.K., with room for further gains. Advertisement "We'll continue to pursue balanced growth while executing opportunistic share repurchases. "Additionally, we're actively reviewing underperforming stores and developing appropriate plans." US giant Group 1 Automotive runs one of the biggest car dealer networks in the UK. The UK division operates over 115 dealerships and employs more than 7,000 staff. Advertisement The group represents over 21 brands, including Audi, BMW, Citroën, Ford, Mercedes-Benz and Porsche. It comes as Group 1 recently Volkswagen Telford dealership - just months after shutting down three other sites. 2 Group 1 runs over 115 dealerships in the UK Credit: Getty - Contributor
The Journal
a day ago
- The Journal
New legislation could allow people choose who inherits their estate, say tax group
'CHOSEN RELATIONSHIP' LEGISLATION could allow individuals select one or two heirs to their estate under the same grouping as parent and child, a specialist expert group has told government. The Tax Strategy Group, an expert advisory panel at the Department of Finance, has noted that the point has been made that people who are not related could have 'equally close and meaningful relationships similar to familial relationships'. The tax experts state that there are a number of ways to develop a policy to capture these 'chosen' relationships. 'For instance, legislation could provide for individuals to select one or two heirs to their estate for Group A Threshold,' it states. Currently, Group A deals with the inheritance to a child (including certain foster children) when a parent dies. This threshold was increased in 2024 to €400,000 from a previous value of €335,000. Penalising people with no children However, in the run up to the election, a debate arose around inheritance tax rules favouring parents and penalising someone who is child-free. The net result in this situation, where 'chosen relationships' could be included in this grouping, would be a tax-free threshold, state the experts, however the paper said that this was not possible to cost. 'Therefore, the costings have been calculated on the basis of three separate instances of a tax-free €400,000 threshold for each group. This would create an additional cost to the Exchequer of €390 million based on up-to-date Revenue data,' state the review papers. Advertisement The Programme for Government contains a commitment to maintain a broad tax base of which Capital Acquisitions Tax (CAT or inheritance tax) is one contributory element, state the papers. 'However, it is important to get some sense of the cost of various changes to a particular tax as these are factors which the Minister for Finance must consider when deciding upon his broader budget package. This is particularly relevant this year because of the case being made to expand the scope of Group A to include broader family arrangements,' said the tax experts. Both Fianna Fáil and Fine Gael made a number of pledges in their election manifestos around the expansion on inheritance tax groupings. Fianna Fáil pledged to review the inheritance tax thresholds applicable when the deceased does not have children. The party also said it would increase and adjust the inheritance tax Category A, B and C thresholds in each budget 'to reflect the wider increase in property prices in the Irish economy in recent years'. Meanwhile, Fine Gael will said it would increase Capital Acquisitions Tax thresholds and raise Group A threshold (for children) to €500,000, Group B (for siblings) to €75,000, and Group C (for others) to €50,000, 'building on the progress made in Budget 2025″, it said. The tax review papers directly address whether there is discrimination at play when it comes to the differential tax treatment for direct familial relationships and more distant relationships, stating that this has existed in the Irish legal system since the foundation of the State. 'This is reflected explicitly in the Constitution, most clearly in Article 41. The current CAT legal framework, differentiating between Groups A, B and C takes account of this constitutional framework,' states the review papers, stating that it is the beneficiary of the inheritance or gift and not the person who passes away who has to pay the inheritance tax. 'In this context, it is not clear that there is a case that disponers are being discriminated against. Instead, legal concerns, if any should be viewed from the perspective of those who are liable for the tax i.e. the beneficiary. 'It should be noted that it is not clear that such concerns exist here either, as it is not uncommon for the tax system to tax people in different ways depending on the situation or their circumstances,' states the report. The Department is satisfied that the existing inheritance tax legislation and the taxation benefits are not unconstitutional or otherwise unlawful, states the review. Related Reads Financial advisor: Thinking of retiring? Here are the things to consider... Opinion: Inheritance tax changes in the budget have brought some relief, but not enough Breaking down further costings, the group looked at the cost of giving the same status to aunt, uncle and sibling relationships that currently apply to parental relationships – i.e. equalising Group A and B at a tax-free threshold of €400,000. This would cost the State €305 million based on the most up-to-date Revenue data. 'The likelihood is that in reality the costs of collating Groups A and B would be lower, but in the absence of appropriate data it is not possible to demonstrate this at this time,' it adds. Boosting €3,000 tax-free gift to your child per year The tax papers also looks at the gift threshold that parents are allowed give to their children on a yearly basis. Currently, a parent may give a gift up to the value of €3,000 to a child or anyone else each calendar year without any CAT arising. Two parents can make gifts of €3,000 each to a child, resulting in a gift to the value of €6,000 in any year free of CAT. There is no limit on the number of small gifts a person can receive in a year from different donors. The small gift exemption applies only to gifts and not to inheritances, but if government were to increase the small gift exemption, for example, in the case of giving their child help towards a deposit to buy a house by €1,000 (to €4,000) such a move would cost €0.7 million, states the paper. The cost of increasing it to €5,000 per parent is estimated to be €1.4 million, based on the number of CAT returns filed for 2023. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
