Christina Finn

PENSION AND OTHER social welfare payments are not expected to rise at the same rate as last year. 

With warnings of tighter purse strings and minimal tax cuts in this year’s budget, government sources have indicated that a weekly social welfare hike of €10 is more realistic for Budget 2026 than what people received last time round.

In last year’s budget, all weekly social welfare payments (including jobseekers benefit and allowance, illness benefit, disability allowance, and others) increased by €12.

This year however, across the board hikes look like they’ll be below that rate.

Budget negotiations are ongoing ahead of the announcement on 7 October, but sources state “there is no mystery in this year’s budget”, and that the target of a €12 increase will be curtailed. 

Both Fianna Fáil and Fine Gael promised in the election campaign that they would increase the pension to €350 per week in the lifetime of the government.

The Programme for Government is a bit more vague, simply promising to “progressively increase weekly pension payments”.

In his opening remarks to his party colleagues at the Fine Gael think-in on Monday, Harris was keen to state that this year’s budget needs to be seen as “instalment one of five”.

He outlined that not everything can be achieved in the government’s first budget since the November 2024 general election. 

Fine Gael will push back against welfare increases for jobseekers 

Aside from the weekly social welfare increase falling back, it is understood that Fine Gael will push back against welfare increases for jobseekers coming in at the same level as those for pensioners and ­others in receipt of a social welfare payment. 

One reason given is the new pay-related jobseekers benefit that has been rolled out this year, which means those who lose their job can now receive larger payments linked to their previous pay.

But it looks like Fianna Fáil, which holds the social protection portfolio, will be on a collision course with its coalition partner over this issue ahead of 7 October.

Micheál Martin has previously been very vocal against separating out one cohort of people from other social welfare increases. 

However, Tánaiste and Fine Gael leader Simon Harris said during the summer that there was “merit” in not looking at social welfare payments with “uniformity”.

He also said he was “not convinced” that dole increases should be in line with other social welfare payments. 

In the run-up to last year’s budget announcement, then Social Protection Minister and now Fine Gael presidential candidate Heather Humphreys said she wanted increased payments for those on social welfare – but not for jobseekers.

At the time, she claimed robust discussions on the issue were held within government – but she said that ultimately a compromise was found and the proposal never came to fruition.  

However, when asked if he would agree to such demands this year, the Taoiseach told The Journal recently: 

I thought it was a false row the last time.

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It was never put to us the last time, you might have read about it somewhere, but it was never put to us, in terms of substance, in terms of presentation.”

Martin denied Fine Gael formally proposed the idea of omitting jobseekers from the €12 increase, something which those in Fine Gael deny, stating they did put it on the table.

The Taoiseach went on to state that he doesn’t like “drawing distinctions” between those on social welfare. 

I’ve never been into that characterisation of people on welfare. I’ve never been into that politics.”

A senior source in Fianna Fáil also told The Journal yesterday that Humphreys looked at whether jobseekers payment could be omitted from any rise and decided that it couldn’t be done. 

Child poverty

While Fine Gael is clear it will push for jobseekers not to gain a payment boost, those on the Fianna Fáil side of government have highlighted that an ESRI report published this week highlighted the increase in child poverty. 

Sources in Fianna Fáil said child poverty is to be a key focus in this year’s budget and pointed out that studies have shown that cutting or failing to increase the jobseekers payment along with other social welfare payments could have a direct impact on families where one or more parent is not working.

As a result, this could have a disproportionate effect on children within those families.