Labour’s Alternative Budget 2026

Labour’s Budget is different.

Our approach would provide immediate support to address the cost of living crisis as well as laying the foundations for long-term investment in Ireland’s public infrastructure, using a thriving economy to create a fairer society.

We want to build better together and that means identifying the gaps in our society, economy and in meeting our existential climate challenge. This year we have built our Budget proposals around addressing child poverty and homelessness, and providing targeted income and energy supports.

Building better together means the security of an affordable place to call home. A tax system where those who have the most are asked to contribute more. An education system that is free and open to all. A health system fit for a rich republic. Childcare that’s affordable, available and that nurtures our children and respects skilled workers. Cutting energy prices by doing what it takes to generate renewable energy, slash emissions, and create the good jobs of the future.

Some of Labour’s key proposals:

A budget to end child poverty with an allocation of €770m for a targeted second tier of child benefit, supported by not reducing VAT in the hospitality sector.
Fund 6,000 public childcare places and a full year of paid leave with leave benefits rising to €350.
Invest to build more than 6,000 social and affordable homes a year taking public targets up to 22,000 state funded homes.
€16 per week increases to core, weekly social welfare rates and the indexation of personal income tax and USC rates at 3% to take account of inflation and wage growth.
Energy support payments targeted to 1.2m households, paid for with a windfall tax on the profits of energy companies and data centres, and increases to the Fuel Allowance worth over €430, Household benefits package and an Energy Tax Credit of €400.
Targeted Cost of Living Supports including a doubling of the Rent Tax Credit to €2,000, increases to the Living Alone Allowance, Working Family Payment and a TaxSaver LEAP card refund for public transport fare and free travel for children.
Abolition of the means test on Carer’s Allowance and the introduction of a Cost of Disability Payment starting at €25 a week.
The introduction of a rural retrofitting scheme with Heat Pumps and Battery Storage, and the introduction of street-by-street retrofitting.
Introduce an Autism Guarantee to ensure an appropriate school place for all children, fully fund the Disability Services Action Plan, and invest to clear AON waiting lists.
The introduction of DEIS+, increased funding for schools to end voluntary contributions and a permanent €1,000 cut to third-level fees.
Rollout of free GP care for all children over two years with a step-change in approach to the delivery of GP and primary care services and investment in hundreds of new hospitals beds, staffing and mental health services.
Address the recruitment crisis in the public service with increased training allowances for Gardaí and Defence Force personnel, safe staffing in our hospitals, a working group to address teacher recruitment and retention, and key worker housing in our major cities.
Real support for SMEs with targeted energy supports, an increased cost of business grant for Main Street firms, and a package to support hospitality and tourism sectors.

END CHILD POVERTY

Introduce a targeted second tier of Child Benefit costing €770m.
Extend Hot Meals to all Schools over four years (€49m a year).
Introduce Free GP care and free travel for all children.
Ban the eviction of children into homelessness and invest in prevention and the Tenant in Situ scheme.

Cost of Living:

Double the rent credit to €2,000 in 2026 (€175m), increase Child Benefit by €10 (€153m) and increase weekly social welfare payments by €16 a week (€1.2bn).
Increase Fuel Allowance by €9.50 a week and extend by 4 weeks (€180m), expand to Working Family Payment (€40m), introduce a €400 targeted refundable Energy Tax Credit (€270m), and increase the Household Benefits Package by €10 a month (€63m).
Cut student fees by €1,000 (€100m) and increase SUSI grants by 15%.
Reduce Leap Card public transport fares by 40% with a new TaxSaver LEAP scheme (€65m).
Bring in tax relief on Sports Club and gym membership to save 20% of the cost (€80m).

Work:

Protect salary increases from inflation by indexing Income tax credits and bands at 3%, the average rate of wage growth this year, which most other European countries do.
Increase the Minimum Wage by 70 cent an hour and reach a living wage in 2027 instead of 2029 and ban reduced pay rates for young people.
Reinstate the PRSI Treatment Benefits scheme and provide for a full year of paid leave between maternity, paternity and parents leave.

Housing:

Fund more than 6,000 social and affordable homes to bring total public build to 22,000 in 2026 and set up a State Construction Company.
Commit €125m for CPO and refurbishment of vacant and derelict buildings, over €40m for reopening vacant Council homes, and increase the Vacant Homes Tax.
Fund the Tenant in situ scheme to meet demand (€125m extra in 2026) and target homelessness funding at prevention.

Health:

Support GP practices to set up in disadvantage and rural areas (€10m current, €20m capital), expand free GP care to children under 12 (€26.6m) and GP training by 20 posts plus 50 salaried GPs.
Hire 2,000 nurses and midwives a year (€146m) and legislate for safe staffing.
Fund 300 new acute hospital beds every year, introduce digital health records and build an extra 140 public nursing home beds a year.
Invest in mental health services with 24/7 crisis support.

Education:

Tackle disadvantage with a new DEIS+ model (€35m) and make education free for parents by cutting costs (several proposals listed in document).
Expand in-school therapies, and continue to invest in special education to ensure an appropriate place for every child.
Reduce class sizes, provide pension parity for school secretaries and caretakers, and resolve the funding crisis in higher education.
Provide Pension Parity for School Secretaries and Caretakers.

Disability:

Introduce a Cost of Disability Payment starting at €25 a week (€298m) and increase the income disregard on Disability Allowance to €250.
Provide €210m extra for Disability Services with a focus on CDNTs and reducing child waiting lists for assessments and therapies.
Increase the level of Housing Adaptation Grants up to €60,000 (€50m).

Carer’s:

End the means test for Carer’s Allowance (€330m).
Increase the Carer’s Support Grant to €2,150 (€25m) and fund more respite services (€12.5m).
Fund more than 2 million hours of home support (€72m) and increase DCA by €20 a month.

Climate Headlines:

Introduce street by street retrofitting and fund a Heat Pump Revolution through a Rural Retrofitting programme.
Reduce commuter costs by up to 40% with a LEAP TaxSaver scheme, phase in free transport for children, and ramp up investment in public transport projects.
Introduce Labour’s Cycling Package and increase funding active travel.
Invest in offshore wind, planning and delivery supports, and put a levy on data centres.

Childcare headlines:

Set up a Public Childcare scheme with 6,000 new places a yr (€61m current, €55m capital)
Cap childcare costs of €50 per week, €10 per day (€172m) over this year and next and increase core funding and improve pay rates for early years staff (€130m).
Guarantee a year of paid leave for new parents and increase Maternity and other leave benefits to €350 a week.

End the Recruitment Crisis in Public Services:

Increase the training allowance for new Gardai and Defence Forces.
Secure safe staffing in our hospitals (€11m) and key worker housing in our main cities using vacant HSE properties (€24m).
Tackle the Teacher recruitment and retention crisis by fixing problems with the PME, pay scales and incremental credit.