DFI's Pre Budget 2026 Submission to the Department of Social Protection

Issued on July 28 2025

DFI submitted a dedicated Pre-Budget 2026 Submission to the Department of Social Protection, DSP. This focused submission outlines the urgent need for targeted action to tackle the unacceptable levels of poverty experienced by disabled people in Ireland. It specifically addresses reforms and investments needed in the social protection system.

The current system is not meeting teh unmet needs of peopel with disabilities. Budget 2026 must mark a shift from temporary, one-off supports to a long-term, structural approach that ensures disabled people can live with dignity, security, and equal opportunity.

Despite Ireland’s economic strength:

  • 1 in 5 disabled people unable to work live in consistent poverty.

  • 2 in 5 experience enforced deprivation, unable to afford essentials like heating, new clothes, or social contact.

  • The basic Disability Allowance (€244/week) falls far short of the actual extra costs of disability, now estimated at €488–€555/week.

DFI’s Budget 2026 Priorities for DSP

1. Introduce a Weekly Cost of Disability Payment

Provide a universal, non-taxable payment of at least €55/week to begin addressing the real extra costs of disability. Over time, move toward a graduated scheme based on assessed need.

2. Increase Core Social Welfare Rates

Raise core rates by at least €16/week based on Minimum Essential Standard of Living, MESL evidence. Introduce annual indexation to keep pace with inflation and wage growth.

3. Support Employment for Disabled People

  • Raise the Disability Allowance income disregard to €625/week.

  • Fund and expand the Work and Access Scheme.

  • Restore the Wage Subsidy Scheme to 70% of the minimum wage and link it to future increases.

4. Reform Means Testing

  • Ensure only the income of the disabled person is assessed, not their partner or family members.

  • Increase the capital disregard to €100,000 and the weekly means disregard to €20.

5. Tackle Energy Poverty

  • Increase the Fuel Allowance to €42.50/week and expand it to all disability-related social protection recipients.

  • Provide enhanced support to people with higher energy needs due to disability.

  • Promote and strengthen access to the Heating Supplement.

6. Develop a Disability Poverty Reduction Plan

Design a specific strategy within DSP to reduce poverty among disabled people, linked to the next Roadmap for Social Inclusion and aligned with Ireland’s obligations under the UN CRPD.

DFI is urging the Department of Social Protection to take decisive action. Budget 2026 is the first opportunity for this new Government to deliver on its social protection promises and make a real impact on disability poverty.