Finance Minister Paschal Donohoe has said that no final decisions have been made on potential changes to the carers allowance in Budget 2026, despite reports suggesting an increase in income thresholds is under consideration.
Speaking at a Fine Gael conference on small business in Carlow, Mr Donohoe emphasised that support for carers has consistently been a priority in past budgets and remains an important issue for the Government. “It is a matter that is important to the Government and we are working collectively with regard to that,” he said.
According to the Irish Independent, the upcoming budget is expected to raise income thresholds for the carers allowance by €200 for single applicants and €400 for couples. However, Mr Donohoe stressed that no decisions had been taken, noting that Public Expenditure Minister Jack Chambers is currently engaged in negotiations with other ministers.
The Finance Minister also said no decisions had been made regarding individual tax measures. The Carlow conference was also attended by Enterprise Minister Peter Burke and Health Minister Jennifer Carroll MacNeil.
Minister Carroll MacNeil highlighted the importance of supporting carers, noting that she had recently met with representatives of Family Carers Ireland. “It really is important that the Government supports carers. We’re always trying to support people in their homes,” she said.
Meanwhile, Enterprise Minister Peter Burke welcomed assurances from Washington that new US tariffs announced this week will not apply to European pharmaceuticals. On Thursday, US President Donald Trump confirmed 100% duties on certain pharmaceutical products would take effect from 1 October, raising concerns over the EU-US trade relationship.
The European Union, however, stressed that its trade deal with the US, reached in July, shields European pharmaceutical exports from tariffs higher than 15%. Mr Burke said confirmation from the White House that the agreement remains in place would provide much-needed certainty for Irish and European industries.
“It’s important that we now have a very substantial deal with the EU and US,” Mr Burke said. “It’s the biggest, largest, most important trading relationship on the globe. It was good to see from the US administration last night the confirmation that the European deal still stands, and that will be the case. That gives certainty for so many industries.”
The Government will finalise Budget 2026 measures in the coming weeks, with income supports, tax relief, and international trade stability all expected to feature heavily in discussions.
