Minister for Social Protection, Dara Calleary has today (Tuesday, October 7) confirmed a social protection package worth over €1.15 billion for new measures in 2026.

It forms part of an overall funding allocation of €28.9 billion to be spent on social protection next year.

Under Budget 2026, there will be increases of €10 per week to most maximum personal payment rates, including for pensioners, people with disabilities, carers and lone parents.

There will be "proportionate increases" for people receiving a reduced payment rate and qualified adults.

The Carer’s Allowance weekly income disregard has increased by €375 to €1,000 for a single person, and by €750 to €2,000 for a couple.

The income limit for Carer’s Benefit will also increase by €375 to €1,000 per week.

When it comes to the Child Support Payment, there is a weekly increase of €16 to €78 for children aged 12 and over (a 26% increase), and a weekly increase of €8 to €58 for children under 12 (a 16% increase).

This brings the total annual value of the Child Support Payment to €3,016 for each child under 12 and €4,056 for each child 12 and over.

The Fuel Allowance will increase by €5 to €38 per week and, for the first time, families receiving the Working Family Payment will qualify for the Fuel Allowance.

In addition, people moving from Disability Allowance or the Blind Pension to take up work will keep their Fuel Allowance for five years.

The minister also confirmed €370 million to fund the Christmas Bonus, which will be paid in December 2025 to almost 1.5 million long-term social welfare recipients.

The Back to School Clothing and Footwear Allowance has been extended to eligible children aged 2 and 3.

In 2026, the State will contribute €154 million to MyFutureFund - the auto-enrolment retirement savings scheme which will commence on January 1, 2026.

Meanwhile, Minister for Finance, Paschal Donohoe said that the revenue generated from an increase in carbon tax this year, which brings the tax to €71/t of carbon dioxide (CO2) emitted, will be ring-fenced for farmers and social welfare measures.

The increase in carbon tax will be applied to auto fuels with effect from tomorrow (Wednesday, October 8) and to all other fuels from May 1, 2026.

The additional revenue arising from the carbon tax increase is estimated at €121 million in 2026 and the full year additional yield is estimated at €157 million.

Minister Donohoe also confirmed that he is increasing the excise duty on a packet of 20 cigarettes by €1, with a pro-rata increase on other tobacco products.

"This will bring the price of cigarettes in the most popular price category to €18.05 and supports public health policy to reduce smoking levels in Irish society," he said.

The minister is introducing a domestic tax on e-cigarettes "on public health grounds as there has been a significant rise in their use".

The tax will apply to all e-liquids at a rate of 50c per ml of e-liquid. A typical disposable vape contains 2ml of e-liquid, and costs in the region of €8.

This new tax will bring the price of such a product to €9.23 including VAT.

"Due to the operational and administrative challenges associated with this measure it will not commence until the middle of next year and therefore will be subject to a commencement order," the minister said.

The government decided to leave the excise duty on alcohol unchanged.