The Last Word with Matt Cooper Personal Finance: Squeezed Middle Feeling The Pinch From Budget 2026
Oct 8, 2025
Charlie Weston, the personal finance editor at the Irish Independent, sheds light on Budget 2026 and its surprising lack of tax changes. He explains how frozen tax bands create a stealth tax, potentially costing middle-income earners significantly more despite pay rises. The conversation also touches on the impact of rising fuel taxes, the burden of student fees, and how PRSI increases affect workers. Weston highlights the growing frustration among those feeling left behind as welfare increases are prioritized over working individuals.
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Frozen Tax Bands Create A Stealth Tax
- Freezing tax bands and credits creates a stealth tax that hits people who receive pay rises.
- More of each euro earned moves into higher tax rates, raising effective taxes for many workers.
Independent Office Predicts Rising Tax Burden
- The Oireachtas Parliamentary Budget Office expects tax burdens to rise across income groups next year.
- The tax-to-income ratio edges up, meaning households will pay a larger share of income in tax.
Don’t Count On VAT Cuts Passing To You
- Expect VAT cuts for hospitality not to lower consumer prices.
- Factor in that businesses often keep the margin, so budget winners may not be everyday workers.