The changes will bring some relief to working families who are struggling under the ongoing Cost of Living Crisis
You will save on energy costs(Image: Getty Images)
Tens of thousands of families across Ireland are set to receive a much-needed boost in the challenging post-Christmas period as changes to social welfare payments and eligibility criteria come into effect.
With numerous working families grappling with the ongoing Cost of Living Crisis, the changes announced in the October budget will provide some additional relief as we move into 2026.
The measures introduced in Budget 2026 include a €10 weekly social welfare increase and a 65 cent minimum wage hike, along with an increase to €360 for one key payment.
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Even those families who do not qualify for increases in certain payments could benefit from other financial enhancements as part of October’s cash plan.
It has been confirmed that the income thresholds for the Working Family Payment will rise by €60 a week for all family sizes from 2 January. This weekly tax-free payment, designed for workers with children, offers extra financial support to families.
The rates, which depend on income and family size, will be 60 per cent of the difference between the WFP income limit for your family size and your assessable income. The minimum rate of the payment is €20 each week.
The WFP income test does not take into account capital and certain payments – such as Child Benefit and Fuel Allowance – are not included in the family’s income.
In January, the income thresholds will alter to €705 weekly for a family with one child, €806 for two children, €907 for three children, €998 for four children and €1,124 for those with five children in their family. Those with eight or more children who earn €1,472 or less each week will also be eligible for the WFP.
Families who believe they might qualify for the payment can apply on MyWelfare.ie or fill out a WFP1 form. There’s also further positive news for working families on lower incomes – for the first time ever, those who qualify for the Working Family Payment will receive Fuel Allowance to help with the cost of heating their homes during the winter months.
The payment, currently at €33 weekly, saw a rise of €5 to €38 in the budget. The 28-week payment now totals €1,064 during the Fuel Allowance season.
However, the estimated 50,000 families expecting Fuel Allowance cash should prepare themselves for a delay.
Parents have been cautioned that they won’t qualify until January 1, with the funds not anticipated to reach their accounts until March or April 2026 – the funds will be backdated to January. The total sum is expected to exceed €304.
There are also alterations in the Back to School Clothing and Footwear Allowance:.
The budget has extended the one-off Back to School Clothing and Footwear Allowance, making more children eligible than ever before. Now, children aged two and three are included in the scheme, which caters for those up to the age of 22.
This means-tested payment is designed to assist families with the additional costs of clothing and footwear when children start school each autumn, and it is available from 1 June to 30 September each year.
While these payments bring welcome news to those newly qualified or already enrolled in the schemes, the Economic and Social Research Institute has warned that families will face hardship next year following the budget. They noted that the removal of one-off boosts will have minimal impact on child poverty and lead to a decrease in average household income next year.
This comes despite €320 million being set aside to combat child poverty.
Last week in the Dáil, Sinn Féin Finance spokesman Pearse Doherty criticised the budget for benefiting those at the top with tax breaks but “royally screwed” ordinary workers.
He stated: “We have constant price hikes and ever increasing bills, and it means that working households, even those with two incomes, are really struggling to keep up now. They’re squeezed from all angles. It’s price hike after price hike. It’s bill after bill, and people can’t catch their breath.”
Tánaiste Simon Harris defended the budget during a heated Dáil exchange, claiming he was being “shouted down by a bully” and insisting that the bulk of the budget was focused on enhancing services.
The ESRI has projected that the removal of one-off supports from previous budgets will cost lower-income households 4.1 per cent of their disposable income.
Despite this, families eligible for supports announced last month have been urged not to miss out on available payments.
Approximately 50,000 families will receive a lump sum of more than €300, whilst many more will benefit from the “largest ever increase” to the Child Support Payment, and a triple €420 Child Benefit payment will be paid into the accounts of new parents.
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