Overview

• Weekly social welfare rates, including the State pension, rise by €10 from January 2026, with a full Christmas Bonus again paid to welfare recipients.
• The national minimum wage increases by 65c to €14.15 an hour on January 1, 2026, and the 2% USC band widens to €28,700 to shield low‑paid workers.
• VAT on food‑led hospitality and hairdressing drops from 13.5% to 9% on July 1, 2026, while the VAT rate on sales of completed new apartments falls to 9% with immediate effect.
• Mortgage interest relief is extended for one more year before a 2027 phase‑out, and the renters’ tax credit is prolonged through 2028.
• The €9.4bn package comprises €8.1bn in spending and €1.3bn in tax measures with no change to income tax bands, as the Government forecasts 3.3% growth in 2025 and 2.3% in 2026 and faces opposition claims it fails on cost‑of‑living pressures.