Opposition parties have strongly criticized Budget 2026, accusing the government of ignoring the cost-of-living crisis and prioritizing developers and multinational corporations over struggling families and workers.
Sinn Féin finance spokesman Pearse Doherty said the budget has “completely abandoned ordinary people” as the cost-of-living crisis has worsened since last November’s general election. He accused the government of providing huge tax breaks to the wealthy while people earning between €30,000 and €40,000 receive nothing, despite this needing to be a cost-of-living budget.
Social Democrats finance spokesman Cian O’Callaghan described it as “a budget of bad choices and missed opportunities,” criticizing the government for prioritizing big developers and fast-food chains over failing families. He said the budget could have lifted 40,000 children out of poverty but instead the government cut tax revenue by €1.3 billion.
O’Callaghan argued the funds could have been used to abolish means testing for carers, reduce childcare costs, provide energy credits for 800,000 families, or cut third-level fees by €1,000. Instead, he said, the government reduced the VAT rate to 9% for multinationals like McDonald’s and Starbucks, which made €42 million profit in Ireland last year.
Labour housing spokesman Conor Sheehan called it “a Galway tent budget” focused on helping developers more than people. He said the government is giving up €390 million annually through VAT relief on apartments without conditions. Combined with stamp duty relief and cost rental tax deductions, the developer tax package is worth €563 million annually.
Sheehan noted developers will earn an additional 4% profit on apartment sales on top of existing 15-20% profits, while more than 220,000 children live below the poverty line and 5,145 children are homeless. He said there are no additional measures for homeless services or to prevent homelessness.
Fuel Prices Rise and Energy Credits Axed
Petrol and diesel prices increased by 2.5 cents per litre from today as the carbon tax rises. From May 1, 2026, the increase will apply to all carbon-based fuels including coal, gas, home heating oil and briquettes.
The budget confirms there will be no electricity credits next year. Electricity prices have increased 69% since 2021, while gas prices have more than doubled. Average annual electricity bills, which were €1,200, are expected to reach €1,900 by year-end.
Doherty called the energy credits cut “shameful,” while Family Carers Ireland said it would have a “huge impact” on families. Between April 2022 and February 2025, Irish households received nine credits worth €1,500, costing the exchequer €3 billion.
Fuels for Ireland CEO Kevin McPartlan accused the government of breaking promises to reduce energy costs. Changes to the renewable transport fuel levy scheme will add 2-3 cents per litre from January 1, 2026.
However, fuel allowance for over-66s and families receiving the Working Family Payment will increase by €5 weekly to €38 from January. The household benefit package of €35 monthly to help with energy costs will be maintained for pensioners. The lower 9% VAT rate on gas and electricity bills will continue for five years, while the €5,000 VRT relief for electric vehicles has been extended until December 31, 2026.