Dáil debates

Tuesday, 7 October 2025

Financial Resolutions 2025 - Budget Statement 2026

 

2:55 am

Photo of Jack ChambersJack Chambers (Dublin West, Fianna Fail)

This will bring the weekly payment to €58 for children under 12 and €78 for children over 12. I am also increasing the working family payment income thresholds by €60 per week for all families. I am extending the back-to-school clothing and footwear payment to two- and three-year-olds.

To support those at risk of energy poverty, I am increasing the weekly fuel allowance rate by €5 to €38. Following the recommendations of the national energy affordability task force, I am also extending fuel allowance eligibility to all households in receipt of the working family payment. This will help protect around 50,000 families from energy poverty.

Alongside these new measures, the 2026 allocation for the Department will provide for: an additional 30,000 recipients on pensions, illness, disability and carers schemes; the full-year cost of jobseeker's pay-related benefit, introduced earlier this year; and continued support for over 50,000 beneficiaries of temporary protection from Ukraine, including lone parents, pensioners and other vulnerable cohorts.

In addition to this substantial social welfare package, the State will also deliver one of the most significant reforms in our history through the introduction of pension auto-enrolment from 1 January 2026. My Future Fund is designed to support workers who are not currently part of any pension plan. Over time, it is expected to benefit around 750,000 people, securing a higher income in retirement for workers. These measures ensure that we improve the lives of our people through sustained investment and better public services.

Health

One of the most essential services provided by the State is our public health system, which safeguards the well-being of individuals, families and communities across the country. Next year will see a total funding package of €27.4 billion going to the Department of Health. This record level of investment will deliver: an increase in acute hospital capacity of at least 220 beds and the expansion of diagnostic services; at least 280 community beds, continued investment in the community nursing units refurbishment programme and reductions in community waiting lists; an additional 1.7 million home support hours; 500 more nursing home places; increased staffing and expansion of mental health services, including suicide prevention, increased access to child and adolescent mental health services, CAMHS, and Traveller mental health initiatives; and enhanced community and primary care services, including the roll-out of the new pharmacy contract. The value of this record level of investment needs to be fully realised, with a focus on productivity, efficiency and better financial governance. These changes will create the basis to establish a more multi-annual structure of funding our health system.

Accordingly, this year's significant funding allocation will be accompanied by a programme of progressive reform in our health system. These reforms include: the ongoing decentralisation of service provision through the new regional health areas; rostering reform, which will see the extension of health services to evenings and weekends and a reduction in dependency on agency staffing; financial management reform which will allow for improved reporting, better use of procurement and increased expenditure control; and investment in digital health, including the HSE health app, the national shared care record and virtual wards.

Disability

Another area of investment relating to health is disability. The programme for Government contains a commitment to advancing the rights and improving the lives of people with disabilities. To progress these priorities, I am allocating €3.8 billion to the Department of Children, Disability and Equality for disability services in 2026. This includes funding for community-based disability services to ensure people with disabilities receive the right support, at the right time, in the right place. It will provide permanent and predictable funding, and deliver tangible impacts for people with disabilities. Over 9,000 people will receive the residential care they need, including 250 new placements next year. Some 1,400 young people finishing school will be supported with day service places, along with 50 additional places for older adults. Families waiting for assessments will see progress, with around 6,500 private assessments funded to reduce delays. More than 150,000 hours of home support and personal assistance will help people to live independently in their own homes. Some 10,000 overnight and 15,000 day respite sessions will be provided.

To drive reform, a dedicated unit has been established in the Department to lead a review of Ireland's disability service model. This unit will work hand in hand with people with disabilities, their families, and representative organisations to shape a long-term vision for services to 2030.

Childcare

Just as we strengthen support for people with disabilities, we are equally committed to delivering systems that support and protect our young people.

To make progress in this area, I am increasing funding for early years by €125 million in 2026, bringing total investment in early learning and childcare to €1.5 billion. This will fund: the national childcare scheme with more than 285,000 children set to benefit from the scheme in 2026, an increase of approximately 35,000 children; universal early childhood care and education, ECCE, benefiting over 105,000 children in 2026; the access and inclusion model for an increasing cohort of children with a disability to access and meaningfully participate in formal childcare; a 10% increase in the capitation rate for AIM level 7; and year 4 of core funding, with enhancements in year 5 of the scheme to improve pay for educators and school-age childcare practitioners with the implementation of new employment regulation orders. The building blocks infrastructure programme will fund extensions of existing community centres and schools to deliver approximately 2,300 additional childcare places.

Investment in our child welfare services is also a key priority for this Government. This year, €1.3 billion is being provided to Tusla to provide for foster care, family support services and additional residential care placements.

Education

Ireland has one of the strongest education systems in the world, with some of the highest-ranking PISA scores for literacy. The programme for Government sets out concrete commitments to support our young people. To begin delivery on this, the Department of Education and Youth will receive a total of €13.1 billion in 2026. This allocation will provide for 1,717 additional SNAs for students with special educational needs in 2026 - the highest number of SNAs we have ever had in our education system, at almost 24,900; along with an increase of 1,042 teacher posts, including 860 additional teachers working across various special educational needs settings, including in mainstream, special classes and special schools; and continued investment in the school transport scheme bringing 170,000 students to and from school. Additional funding is now being provided to support the implementation of DEIS plus and a new DEIS plan, supporting children at risk of educational disadvantage with targeted measure. The planned roll-out of the education therapy service will commence in special schools providing access to essential therapy services. Additional funding for young people through youth services is being provided, with an increased focus on capital investment.

I am also announcing an increase in the standard capitation rates paid to all schools. This will include, on a per pupil basis, €50 for primary and special schools, from €224 to €274, and €20 for post-primary schools, from €386 to €406.

In addition to this, the Department’s €1.6 billion capital allocation for 2026 will progress the delivery of over 300 school building projects with the majority of these expected to be completed in 2026 and 2027. Within this, there will be a strong focus on delivery of additional capacity for approximately 2,800 places for special classes and special schools from the first tranche of projects under the climate action works scheme. It is important to remember that learning does not end with childhood - it can be a lifelong journey for us all.

Further and Higher Education, Research, Innovation and Science

The Department of Further and Higher Education, Research, Innovation and Science continues to foster adult learning, and the development of the skills and needs to support our workforce and enterprise sector. In 2026, the Department will receive an allocation of almost €5 billion. Some €4.1 billion will allow for: increased delivery of apprenticeships to support key infrastructure projects for the economy; the provision of 1,110 new places in key health and social care professions to meet the workforce needs of the health, disability and education sectors; and a permanent reduction of €500 in the student contribution fee-----

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