Breathing space for Northern Ireland families and businesses
Families and businesses in Northern Ireland will get breathing space from Budget 2026.
- Heating oil costs lowered for almost half a million households and 5p cut to fuel duty extended.
- Growth and jobs backed with Northern Ireland Investment Summit and £7.5 million investment in cybersecurity jobs and skills.
- The Northern Ireland Executive will have an extra £270 million for public services until 2030.
Families and businesses in Northern Ireland will get breathing space from Budget 2026.
Against a backdrop of global uncertainty, rising energy costs and pressure on household finances, Chancellor John Healey has acted on the cost of living, fuel prices, and local jobs — alongside continued funding for the Northern Ireland Executive to provide public services.
In the Budget, John Healey announced:
- Heating oil: The removal of the 4% tariff on kerosene will support the 61% of households in Northern Ireland that rely on heating oil to heat their homes.
- Fuel: The extension of the 5p cut to fuel duty for a further six months until 30 June 2027. The 3.7p cut to red diesel duty continues, which matters for farmers, rural hauliers and other fuel-heavy users across Northern Ireland. He also announced a permanent increase to the generosity of mileage rates to support those who drive for work.
- Food prices: Tariffs axed on over 100 food products, including chocolate and fruit juice. Combined with tariff suspensions earlier this year, this will save households up to £21 annually.
- Pensions: by the end of this Parliament, roughly 40,000 low-income pensioners in Northern Ireland will pay less tax or none at all on their State Pension income, as a result of reducing the disproportionate administrative burden of paying small amounts of tax.
- Wages: Increasing the National Living Wage by 3.9% to £13.21 per hour and the National Minimum Wage by 3.9% to £11.27 per hour for 18 to 20-year-olds and by 3.9% to £8.31 per hour for 16 to 17-year-olds and eligible apprentices. 140,000 workers in Northern Ireland saw a direct pay rise following April 2026’s increase to the National Living Wage and National Minimum Wage.
Backing growth in Northern Ireland
- £7.5 million of new funding for Queen’s University Belfast’s CSIT Cyber AI Hub. This is new investment in jobs and skills in Belfast’s cyber security and AI sector.
- £1 million new funding for a Northern Ireland Investment Summit to show investors what Northern Ireland can do.
- The Northern Ireland Executive is receiving funding to set up its own version of the British Industrial Competitiveness Scheme, to lower electricity costs for manufacturers that use a lot of power.
- The Budget strengthens the UK’s national security by fully funding the £15 billion Defence Investment Plan, including £4.7 billion that was previously unfunded. Defence spending supports 1,000 industrial jobs in Northern Ireland, up 25% since 2025.
Secretary of State for Northern Ireland, Chris Bryant said:
This Budget will give families and businesses in Northern Ireland more financial breathing space by reducing heating oil bills, extending fuel duty relief, supporting pensioners and those on the National Living Wage and National Minimum Wage.
The £270 million through the usual Barnett consequentials enables the Northern Ireland Executive to match public services elsewhere in the UK.
The UK government is looking to the future, investing in Northern Ireland’s strengths through the £7.5 million cyber security boost for CSIT’s Cyber AI Hub and showcasing its amazing goods and services through £1 million in funding for an Investment Summit.”
Funding for public services
Northern Ireland gets money for public services through the block grant. This is money collected from taxpayers across the UK – including from people in Northern Ireland – which the Executive can then spend on devolved services like health, education and housing.
The Northern Ireland Executive will have an additional £270 million for public services over the Spending Review period. That comes on top of the additional £740 million provided through Budget 2025 and Spring Forecast 2026.
This funding is in addition to the UK Government’s £1.5 billion offer over three years to help the Executive agree a budget.