Longford TD Micheál Carrigy has said protecting jobs was 'prioritised'

Longford TD Micheál Carrigy has said protecting jobs was 'prioritised' in Budget 2026 but he is very confident in further budgets over the term of government that there will be additional supports for householders.

There was some criticism last week that there were no significant income tax cuts for ordinary PAYE workers compared to previous years when the Government delivered tax cuts in the form of increased credits or the moving of tax bands.

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However, Deputy Carrigy has defended the Government decision and the hospitality VAT reduction from 13.5% down to 9% and hinted they have a long-term vision with more supports available over the coming years.

"I know there's over €600 million extra there, and there's significant increases in special education for teachers, special classes, SNAs, which was also being looked for.

"I know there has been criticism with regards to the VAT rate.

"The reason for that is to support an industry with nearly 200,000 jobs in it."

The Fine Gael TD said there has been also investment in the whole area of research and development, to support a lot of the companies that are based here and carrying out research and development, with the aim to continue those companies employing people here.

"That is significant, among the numbers of people that are working in those industries, and paying corporation taxes.
"So we want to make sure with the whole area of the tariff system, that we consolidate that base," he added.

Deputy Carrigy referred to how from July 2026, the weekly income disregard for Carer's Benefit will increase by €375 to €1,000 for a single person, and by €750 to €2,000 for a couple.

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"There has been a significant investment into social welfare, for the elderly, carers, massive increase in income disregard for carers, with the ultimate aim of getting rid of the mean test statute of the fuel allowance system."

Despite the absence of an energy credit this year Deputy Carrigy stated the budget will see a long-term reduction in the VAT rate applicable to gas and electricity bill, reducing this from 13.5% down to 9%.

This measure will remain in place until 31 December 2030, at an annual cost of €254 million.

"We have seen with energy, the reduction in VAT on energy is continuing, and has been put in place under 2030."

The Ballinalee native said it is very important that those areas are supported."

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Deputy Carrigy stated they had a "certain amount in the current cl2imate of finance available" to make changes like that.

"We have also seen across the sector, extra investment in support into health, to open up more minor injury clinics and surgical hubs around the country.

"So, yes, 100% that has to be change in the income tax bands, but that investment has gone into services that are there to support everybody from school transport and into health infrastructure, increased funding into sports, increased funding into supporting those most at need, and that particularly includes those on social welfare, pensioners, disability allowance, carers allowance.

"It has been, as I say, a sizable budget, but what I would say is that services and the protection of jobs in the current climate were prioritised, and I would be very confident that you will see in further budgets over the term of government that there will be supports there."