Government Faces Criticism for Excluding Middle-Income Workers from €10 Budget Hike in New Benefit Plan
The upcoming Budget 2026 is generating significant debate regarding the exclusion of middle-income workers from the proposed €10 increase in weekly payments. The government is set to implement this increase for most social welfare recipients starting in January 2026; however, those on the new pay-related jobseeker’s benefit will not see similar adjustments.
Details on the Excluded Pay-Related Jobseeker’s Benefit
A spokesperson from the Department of Social Protection clarified that this budget does not alter the rates associated with the pay-related jobseeker’s benefit. This benefit, designed to reduce the financial shock of losing a job, is connected to a worker’s previous salary.
- Maximum weekly payment: €450
- Payment percentage of former earnings: 60%
- Duration of maximum payment: 13 weeks
Criticism from Trade Union Leaders
The Irish Congress of Trade Unions (ICTU) has voiced its discontent regarding the government’s decision. General Secretary Owen Reidy highlighted that the top rates of this benefit have remained unchanged since its introduction in 2022. He noted that other core weekly payments and pensions have seen increases of €36 per week over this period.
- Change in personal rate of core weekly payments: €36
- Increase expected from January 2026: €46
Reidy criticized the government’s stance, suggesting that not adjusting the pay-related benefits in light of inflation and wage growth will exacerbate existing income disparities.
Concerns over PRSI Contributions
With workers contributing more to the Pay Related Social Insurance (PRSI) fund, Reidy pointed out that this burden is not reflected in the jobseeker’s benefit. He indicated that by 2028, an additional €1.6 billion would be added to employee contributions.
Laura Bambrick, ICTU’s social policy representative, stressed that the freeze on the jobseeker’s pay-related benefit was a concerning detail obscured in the budget announcement. She reiterated that workers have been paying increased PRSI in expectation of greater benefits when needed.
Government’s Response
In response to these concerns, Minister of Social Protection Dara Calleary acknowledged the enactment of the new scheme but emphasized that it is being monitored as it rolls out. He indicated that adjustments could be considered based on economic evaluations and feedback from stakeholders.
Additionally, Calleary stated that the recent increase in the national minimum wage will benefit workers transitioning to unemployment. For those with five years of PRSI contributions, the average weekly payment under this scheme stands at approximately €394.20 during the initial entitlement period.
Conclusion
The Budget 2026 has sparked a vital conversation about income support for middle-income workers. As the government proceeds with its budgetary plans, stakeholders are urging for a reevaluation of the pay-related jobseeker’s benefit to ensure it meets the financial needs of those who contribute to the system.
