BUDGET 2026 was described by Minister for Finance Pascal Donohoe as “a sensible budget that will safeguard our future”, but members of the opposition have branded it as a budget “for burger barons and big builders” and the “McBudget”.
Zooming down on the outcome of Tuesday’s Budget, what does it mean for the people of Limerick and how will their wallets fare at the end of the day?
The minimum-wage is set to go up by 65c, with workers to earn €14.15 per hour from the start of next year.
However, the increase in USC may mean some, especially middle earners, will end up with slightly less money in their pockets. The ceiling for the two per cent USP rate band will increase by €1,318 to €28,700.
A concession to individuals with a full-medical card who earn less than €60,000 per year will apply until the end of 2027.
No major changes or surprises for individuals in receipt of a social welfare payment, with Minister for Public Expenditure Jack Chambers announcing a double Christmas bonus social welfare payment, as well as an increase of €10 per week for a person receiving a weekly social protection payment, including the State pension, Disability Allowance, and Carer’s Allowance.
Students will see a €500 reduction in their tuition fees, but the announcement does mark a decrease on last year’s budget where a €1,000 decrease was put in place.
Bryan O’Mahony, President of Aontas na Mac Léinn in Éirinn (AMLÉ), said students were angry at the outcome, describing Ireland’s college fees as “the highest in Europe”.
Renters will continue to receive the €1,000 Rent Tax Credit (€2,000 for couples), which was first introduced in Budget 2023, for another three years. And the cost of building apartments is now set to go down with a reduction in the VAT rate from 13.5 to nine per cent.
However, there has been widespread criticism, including from The Simon Communities of Ireland who expressed their disappointment that there “was no mention of homeless prevention” and that “homelessness remains invisible within the Budget”.
Unsurprisingly, the price of a pack of cigarettes will now cost smokers an extra 50c, and excise duty on other tobacco products will be raised on a pro-rata basis.
There are no targeted energy credits as featured in previous budgets for homeowners this year. The nine per cent VAT rate on gas and electricity has been extended until the end of 2030, which the government hopes will help people to curb rising electricity costs.
News of a reduced VAT rate from 13.5 to nine per cent for food and catering businesses as well as hairdressers is welcome news for businesses, but the Vintner’s Federation of Ireland (VFI) criticised the timeline for measures to be introduced, claiming the government is “making struggling pubs wait until July for even modest relief”.
An additional 1,717 SNAs will be employed in schools next year, with a further 1,042 teaching posts, including 860 additional teachers working across various special educational needs settings.
However, ASTI General Secretary Kieran Christie maintains that Budget 2026 “fails to tackle the key issues impacting second-level schools and students”.
“There is no commitment to end the chronic shortage of second-level teachers, too large class sizes, and the glaring lack of resources in schools,” Mr Christie added.
The government also announced plans to recruit more than 1,000 trainee Gardaà across the country and to increase the number of community Gardaà on the beat by 200.
Funding will also go towards a number of road projects across the country, including the Adare Bypass, and the rollout of BusConnects, of which Limerick is part of, will continue to be supported.
