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Ireland Unveils Budget Boosts Amid Rising Costs

10/10/2025

50 11 Full Breakdown

Summary

Story summary

The Irish government plans budget measures to protect the economy and jobs.
The budget changes include a €10 weekly rise in social welfare payments and an increase to the Carer’s Allowance disregard to €1,000 for singles and €2,000 for couples.
The carbon tax will rise to €71 per tonne, increasing fuel prices.
Income tax bands remain unchanged.
A reduced VAT rate on food and hairdressing takes effect in July 2026.

History

Historical Context

In response to the 2008 financial crisis, the Irish government implemented severe austerity measures in its 2010 budget, which included a €4 billion reduction in the national deficit and cuts to social welfare payments, marking the first such cuts since 1924. These actions reflected ongoing economic struggles, with unemployment peaking at 14.8% in 2012, as the government sought to stabilize the economy.

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Story summary

The Irish government plans budget measures to protect the economy and jobs.
The budget changes include a €10 weekly rise in social welfare payments and an increase to the Carer’s Allowance disregard to €1,000 for singles and €2,000 for couples.
The carbon tax will rise to €71 per tonne, increasing fuel prices.
Income tax bands remain unchanged.
A reduced VAT rate on food and hairdressing takes effect in July 2026.

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