Irish households face a series of significant social welfare and fiscal shifts in the coming weeks, including the distribution of the Back to School Clothing and Footwear Allowance and the potential expiration of temporary fuel tax cuts. These changes will impact family budgets and transport costs through the remainder of the summer.
When is the Back to School Clothing and Footwear Allowance paid?
The Back to School Clothing and Footwear Allowance will be issued to the majority of eligible families throughout July. Many families automatically qualify for the payment and don’t need to apply. The scheme provides a means-tested payment to assist with the costs of school clothing and footwear.
Budget 2026 expanded the eligibility criteria to include children aged two and three for the first time. The payment amounts are set at €160 for children aged two to 11, and €285 for children aged 12 years and over in second-level education. Additionally, since June 2025, if you are getting the Foster Care Allowance, you can apply for the Back to School Clothing and Footwear Allowance for each foster child.
The Back to School Clothing and Footwear Allowance is a once-off, means tested payment.
How will fuel prices change in August?
Consumers face a potential rise in fuel costs on August 1 as temporary government tax cuts are scheduled to expire. Current measures have reduced the price of diesel by 32 cent per litre and petrol by 27 cent per litre. Should they expire, fuel prices would jump back to around the €2 mark.
The Taoiseach has promised a “decisive” decision regarding a possible extension of these measures by Tuesday. This decision follows ongoing uncertainty in the Middle East. If the measures are not extended, motorists will see an immediate increase in their daily commuting and travel expenses.
What changes are coming to Carer’s Benefit?
The income limit for the Carer’s Benefit scheme will increase by €375 in July. This adjustment brings the total allowable income to €1,000 per week.
How do bank holidays affect social welfare payments?
The August Bank Holiday, which falls on August 3, will result in a change to social welfare payment schedules. Recipients whose payments are due on that date will be paid on the prior Friday.
If you receive your social welfare payment via a financial institution, check your account balance on the Friday before the bank holiday. Payments are often processed early to account for the holiday period.
Frequently Asked Questions
- Do I need to apply for the Back to School allowance? Many families automatically qualify for the payment and don’t need to apply. To qualify for the payment, you must satisfy the conditions of the scheme.
- What is the maximum income for Carer’s Benefit? As of the July update, the weekly income limit for the scheme has been raised to €1,000.
- Will fuel prices definitely rise in August? As it stands, August 1 will bring a dramatic overnight increase for consumers nationwide, though there is talk around extending the current measures.
Stay informed on upcoming changes to your household budget. Subscribe to our newsletter for the latest updates on social welfare and cost-of-living measures. Have questions about these changes? Leave a comment below.
