Budget 2027: €1.15 Billion Social Protection Package Announced

Ireland’s Budget 2027 will deliver a major expansion of social welfare supports, with the Department of Social Protection confirming more than €1.15 billion for new measures. The package includes higher weekly payments, a new Cost of Disability payment, increased child supports and additional help with energy costs.

Budget 2027 social protection measures

More than €30 billion will be spent on social protection in 2027, representing a €2 billion increase on the previous year. The measures are intended to support pensioners, carers, disabled people, families and working-age recipients.

  • Core social welfare payments will rise by €10 per week from January 2027.
  • The State Pension Contributory will increase to €309.30 per week.
  • Fuel Allowance will rise by €5 to €43 per week.
  • The Living Alone Allowance will increase by €3 to €25 weekly.
  • The Christmas Bonus will be paid at 100% in December 2026.

First Cost of Disability payment

A new €500 Cost of Disability payment will be introduced in 2027 for approximately 240,000 people receiving a long-term disability payment. The Department of Social Protection has also committed to a co-design process involving disabled people and their representative organisations to consider how the payment should operate in future years.

The Government has allocated €119 million for the measure. Other employment-related changes include reducing the weekly hours threshold for the Wage Subsidy Scheme from 15 hours to eight hours, as well as higher earnings disregards for Disability Allowance, the One-Parent Family Payment and Blind Pension.

Higher child and carer supports

Child Support Payments will increase by €6 per week, benefiting about 330,000 children. The payment will rise to €64 weekly for children under 12 and €84 for children aged 12 and over. For a family with one child in primary school and one in secondary school, the combined annual increase will be €624.

The Working Family Payment income thresholds will increase by €30 per week for all family sizes. The Holiday Hunger Programme, which previously operated as a pilot, will become permanent and is expected to benefit more than 40,000 children.

Carer’s Allowance income disregards will also increase to €1,150 per week for a single person and €2,300 for a couple. This means more households can qualify for the payment while earning income, supporting the Government’s longer-term commitment to remove the means test.

Fuel, rural and farming supports

The Fuel Allowance increase means some 460,000 recipients could receive more than €1,200 during 2027. The income limit for a single person aged 66 or over will also increase from half the couple’s limit to 60%, potentially allowing more older people to qualify.

Rural measures include an expansion of the Rural Dweller pilot to 500 places and an increase in the weekly top-up for the Community Employment Scheme, Rural Social Scheme and Tús to €35. The means disregard for agri-environment schemes will increase by 50%, from €5,000 to €7,500. A legislative amendment is also planned to place Fish Assist on a statutory footing.

What Budget 2027 means for households

The package combines universal weekly increases with targeted measures for people facing disability-related costs, caring responsibilities, child poverty and energy pressures. Almost 1.4 million long-term social welfare recipients are also due to receive the full Christmas Bonus in December 2026.

Budget 2027 represents a significant change to Ireland’s social protection supports. The key takeaway is that pensioners, carers, disabled people, children and low-income working families will see the main benefits through higher payments and broader eligibility.

Article/Image Courtesy: gov.ie

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