Pat Casey (Fianna Fail)

I welcome the Minister of State to the House. Budget 2026 is a forward-looking and pragmatic plan that invests in Ireland's future while safeguarding the jobs, prosperity and stability of today. It also tackles the urgent challenges we are facing in housing and infrastructure while also building the resilience we need to navigate an era of profound global and domestic change.

As the first budget of this Government's term, it sets out a clear tone for sustained delivery in the years ahead. Our economy continues to demonstrate remarkable strength with 2.8 million in employment and life expectancy now reaching 83 years.

We have made real progress in restoring public finances yet we are acutely aware of many households continuing to feel the pressures of the rising living costs and ongoing housing concerns. In a world marked by uncertainty and shifting global dynamics, Ireland remains steadfast in its commitment to international co-operation and open trade.

I welcome this budget as it reflects the strength of our economy, the resilience of our people and the enduring values of our Republic. It is a budget that protects the vulnerable, supports working families and invests in the long-term future of our country.

At its heart, budget 2026 is about fairness. It delivers a €10 weekly increase in core social protection payments for pensioners, carers, people with disabilities and lone parents. These are not token gestures, they are targeted permanent supports that will make a real difference. The increases in child benefit - €8 for children aged under 12 and €16 for those over 12 - is the largest in the history of the scheme and is a direct investment in families and tackling child poverty. The carer's allowance income disregard has been significantly increased up to €1,000 for individuals and €2,000 for couples - a long-standing Fianna Fáil priority. The working family payment threshold is rising by €60 a week helping low-income families to make work pay.

Housing and affordability remains the defining challenge of our time and this budget responds with scale and urgency: €2.9 billion for new social homes and second-hand acquisitions, €1.2 billion for starter homes through affordability schemes, €140 million for retrofitting social homes and €130 million for 17,000 adaptation grants for older people or people with disabilities.

This budget includes a comprehensive and balanced tax package that supports workers, renters, entrepreneurs and families. The national minimum wage will increase to €14.15 per hour in 2026. The USC 2% rate band has increased by €1,380 ensuring that full-time minimum wage workers remain outside the higher USC rates. The rent tax credit is extended to 2028 supporting nearly 400,000 renters and providing certainty for tenants. The 9% VAT rate on gas and electricity is extended to 2030, easing energy costs for households during a time of global uncertainty.

The €500 reduction in student contribution fees will benefit over 100,000 students making third level education more affordable. The research and development tax credit has increased to 35% supporting innovation, high-quality jobs and Ireland's global competitiveness. The 9% VAT rate on apartment sales will help close the viability gap in construction and boost housing supply, particularly in urban areas. The revised entrepreneur relief lifetime limit has increased from €1 million to €1.5 million supporting Irish business owners and job creators. The digital games tax credit has been extended to 2031 and the new 40% film tax rate has been introduced for visual effects works supporting Ireland's creative industries. These are not giveaways. They are smart targeted tax changes that support affordability, innovation and long-term sustainability.

Fianna Fáil has always believed that education is our greatest equaliser and this budget delivers with over 1,700 new SNAs and 1,000 new teaching posts, expanded access to the national childcare scheme with over 285,000 children, increased capitation grants for schools, major investment in school buildings and special education places, and a €125 million increase in early years funding, bringing a total investment of €1.5 billion. In the area of health and disability, there is a budget of €27.4 billion for health and €3.8 billion for disability services. This is a caring and ambitious budget. There will be 220 new acute hospital beds and 280 community beds, €1.7 million in additional home support hours, 9,000 people will receive residential care and 1,400 school leavers will be supported with day services. The budget also funds 10,000 overnight and 15,000 day respite sessions and 6,500 private assessments to reduce waiting lists. This is about building a health and disability system that is inclusive, responsive and future proofed.

In the area of climate and energy, budget 2026 ensures that climate action is fair and just. A sum of €558 million in carbon tax revenue will fund energy upgrades for homes and communities. The warmer homes scheme has seen an 11-fold increase in funding since 2020. The accelerated capital allowance scheme for energy efficient equipment and gas vehicles has been extended to 2030. The €5,000 VRT for electric vehicles has been extended to 2026 and a new zero-emission vehicle category has been introduced for the lowest benefit-in-kind rates. We are delivering climate action that supports people, not punishes them, and that is our approach.

On jobs and enterprise, the budget supports Irish enterprise in rural communities. It allocates €1.3 billion for enterprise innovation and job creation and increased funding for Enterprise Ireland and the IDA to support scaling and attracting investment. There is an allocation of €611 million for rural and community development, including €192 million for rural affairs and €260 million for community supports. A 9% VAT rate on food, catering and hairdressing will be introduced from 1 July.

Budget 2026 is a budget of fairness, vision and values. It protects the vulnerable, supports working families and invests in our future. Fianna Fáil's influence is clear. It is in the social support, housing investment, tax fairness and long-term planning that underpins the budget.