Irish Think Tank Urges €25 Increase in Welfare Payments

Social Justice Ireland calls for significant reforms in Budget 2026 to combat poverty.

A leading think tank is pushing for a €25 increase in all weekly social welfare payments in the next budget. Social Justice Ireland (SJI) argues this boost, benchmarked against average earnings, is vital to address income inadequacy and provide certainty for vulnerable households.

Social Welfare Reform Proposals

**Michelle Murphy**, Research and Policy Analyst for SJI, emphasized the urgency of the situation, stating the current rates are “inadequate to meet even the most basic of needs.” The group advocates for aligning jobseeker payments for 18-24 year olds with the full adult rate.

SJI presented its Budget priorities to the Joint Committee on Social Protection, Rural and Community Development. **Murphy** stressed that social welfare should serve as a robust safety net, enabling individuals to escape poverty and achieve a basic standard of living. Despite existing social welfare provisions, nearly 630,000 people in Ireland lived below the poverty line in 2024.

SJI proposes benchmarking core social welfare rates to 27.5 percent of average earnings. A €25 rise would bring core payments to €269 per week by 2026, they estimate.

Disability and Carer Support

The organization is also calling for the introduction of a cost of disability allowance at €20 per week, or €80 per month. Furthermore, they seek an increase in the Domiciliary Care Allowance to €385 per month, alongside a pilot program for a Universal Basic Services and a Universal Basic Income Scheme for Carers.

Carers provide essential unpaid support, with over 299,000 individuals in Ireland providing unpaid care each week, marking a 53 percent increase in six years.

**Murphy** explained: “Carers provide a huge service to the State… To acknowledge and support the work of carers in Ireland, at the very minimum in Budget 2026 Government must: Increase the Domiciliary Care Allowance to €385 per month at a cost of €17m. Pilot a Universal Basic Services and a Universal Basic Income Scheme for Carers at a cost of €10m in line with the Programme for Government Commitment to a Carers Guarantee.”

Child Benefit and Fuel Allowance

Social Justice Ireland is advocating for a €50 increase in child benefit, and increased Child Support Payments for those under 12 by €6 a week and €15 for those aged 12 and over. They also propose a €10 per month increase in the fuel allowance, extending it to Working Family Payment recipients.

According to recent data, over 17% of Irish children are at risk of poverty, highlighting the critical need for enhanced family support (Tusla Report 2023).

Rural and Community Investment

The SJI proposals extend to rural development and the community and voluntary sector. Key initiatives include a €100 million allocation to Regional Development and Transition, an additional €25 million for Enterprise Ireland to support indigenous enterprises, and another €25 million for Fáilte Ireland to promote regional tourism.

Other recommendations include a €5 million investment to establish a Farm Sustainability Passport pilot program and a €50 million investment in the Rural Transport Programme.

Addressing Regional Disparities

**Murphy** underscored that “Investment in the social and economic infrastructure of the regions is vital to deliver on Government’s commitment to balanced regional development.” She added this requires addressing challenges such as an older population, higher rates of part-time employment, and lower median incomes.

Government Considerations

Earlier this month, **Tánaiste Simon Harris** suggested potentially freezing the jobseekers allowance amidst full employment, sparking debate about fair distribution of budget increases. **Finance Minister Paschal Donohoe** and Public Expenditure Minister **Jack Chambers** have expressed caution about creating new economic risks through spending or taxation decisions in Budget 2026.

The committee, chaired by Fine Gael Cork North-West TD **John Paul O’Shea**, will hear the proposals later today.