Budget 2026 delivers the largest health allocation in the history of the State, with €27.4 billion earmarked for the Department of Health next year. The package covers both current and capital spending, with day-to-day expenditure rising to more than €25.7 billion, an increase of 5% on this year. Capital funding will total €1.5 billion.
There are no new patient charges or extensions to eligibility for existing schemes, although a full review of eligibility rules is scheduled. The Budget provides for approximately 3,300 additional staff across the health system and includes €173 million for new and existing medicines.
Funding will support expanded acute hospital capacity, greater access to diagnostics and at least 280 new community beds. Additional investment will continue the refurbishment of community nursing units and help reduce community-based waiting lists.
Mental health services receive a significant uplift, including more suicide prevention initiatives, wider access to CAMHS and dedicated programmes for Traveller mental health. The Budget also provides for 1.7 million extra home support hours, 500 additional nursing home places and enhanced primary and community care, including implementation of the new pharmacy contract.
Hospital Capacity and HSE Cost Savings
Between 220 and 265 acute hospital beds are planned for 2026, alongside strengthened home-care supports and further nursing home places. The HSE will be required to achieve €211 million in savings next year, in addition to the €600 million already targeted across 2024 and 2025.
Savings are expected to come from productivity improvements, more efficient rostering, reduced reliance on agency staffing and stronger oversight of waiting list management.
Government Focus on Productivity and Reform
Minister for Public Expenditure Jack Chambers said the record health investment must be matched by better financial governance and stronger performance across the system. He said the reforms introduced alongside the Budget are intended to shift the health service towards a more stable multi-annual funding structure.
Planned reforms include:
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Continued development of Regional Health Areas
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Rostering changes to extend service provision into evenings and weekends
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Reduced agency dependency
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Financial management improvements, including more accurate reporting and better procurement
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Investment in digital health, including the HSE Health App, National Shared Care Record and virtual ward services
Concerns from Nursing and Midwifery Representatives
The Irish Nurses and Midwives Organisation said the staffing increase proposed for 2026 falls short of what is needed. The union noted that the HSE has left 6,000 funded posts unfilled this year and criticised what it described as a lack of urgency in addressing staffing shortages across hospitals and community services.
€3.8 Billion for Disability Services
Separately, €3.8 billion has been allocated to disability services under the Department of Children, Disability and Equality.
Key commitments include:
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250 new residential care placements, supporting more than 9,000 people in 2026
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Approximately 6,500 private assessments to reduce waiting times
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More than 150,000 hours of home support and personal assistance
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10,000 overnight and 15,000 day respite sessions
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Disability Allowance increased to €254 per week
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Day-service places for 1,400 school leavers and 50 additional places for older adults
A new dedicated unit will lead a full review of Ireland’s disability service model, working with families and representative organisations to shape long term reforms to 2030. The Irish Wheelchair Association criticised the absence of a permanent cost-of-disability payment, describing the lack of progress as disappointing.
