€500 Cost of Disability payment falls far short of the weekly costs disabled people face

We wish to share Disability Federation (DFI) of Ireland's response to Budget 2027 announcement of a Cost of Disability payment. As a member of Disability Federation Ireland, Muscular Dystrophy Ireland contributes to collective advocacy to advance the rights of disabled people. 

€500 Cost of Disability payment falls far short of the weekly costs disabled people face, says DFI

Formal recognition of the extra cost of disability is a hard-won principle, but €500 a year covers less than 5% of the extra costs disabled people face.

October 6, 2026: The Disability Federation of Ireland (DFI) has said the €500 Cost of Disability payment announced in Budget 2027 is worth less than €10 a week, a fraction of the extra costs disabled people face week in, week out. 

DFI acknowledged the payment as a step towards recognising the additional costs of disability but said it was deeply disappointed that the Government has not introduced the weekly €55 payment called for by DFI, its member organisations and disabled people. For those in receipt of a long-term disability payment, the new payment will largely restore the €400 Disability Support Grant removed in Budget 2026. DFI had called for that grant to be reinstated and, separately, for a weekly payment of €55, worth €2,860 a year, six to seven times what has been announced.

DFI also criticised the decision to link the Cost of Disability payment to social welfare, arguing that it risks confusing two distinct issues. A Cost of Disability payment should recognise the additional costs arising from disability, regardless of a person’s welfare status. While social welfare increases help people manage the rising cost of living, the additional costs associated with disability are a separate and ongoing financial burden that requires a distinct response.

Elaine Teague, CEO of DFI, said that the costs of disability are not annual. They arise week after week and throughout people’s lives, across transport, housing, health, education and employment, which is why they require a whole-of-government response. 

“For the first time, the State is formally recognising through a dedicated payment that disability brings additional costs,” she said.  

“But the costs of disability do not happen once a year. They are part of disabled people’s everyday lives. After more than 20 years of campaigning, the principle has been won. But less than €10 a week is not prioritising disabled people. 

“After a year of consultation, a national summit and a report on the cost of disability, the Government had the evidence it needed. It is deeply disappointing that, despite this work, disabled people are still waiting for a payment that reflects the weekly reality of the costs they face. 

“An annual payment of €500 cannot be the final answer to a cost that disabled people face every week, every month and every year, particularly when that payment is linked to Social Welfare.”  

Conor McAuley, a disability advocate, speaking about his lived experience, said: “Living with a disability means facing extra costs all the time. There are things I need to pay for that other people simply don’t have to think about, and there have been times when I have had to go without things that would make my life easier because I couldn’t afford them. That affects your independence, your choices and your quality of life. 

“This payment recognises that reality, but less than €10 a week will not change it for people like me. 

“The costs we face are much greater than this payment can cover. This must be the beginning of a commitment to increase the payment and make sure that everyone who faces the additional costs of disability can benefit from it.” 

Dr Emer Begley, Director of Advocacy at DFI, said: “Disabled people who are working continue to face significant disability-related costs. Excluding them will create a poverty and employment trap, penalising people for working and discouraging them from entering or progressing in employment. These costs do not stop at retirement age either. 

“The Government’s consultation heard clearly that people wanted a payment that supports people to work rather than creates barriers to employment, and that people did not want another assessment process. 

“Eligibility should not exclude people who face significant additional costs simply because of their employment status.” 

DFI is calling on the Government to publish a roadmap before Budget 2028, setting out a timeline for moving to a weekly Cost of Disability payment, with annual reviews reflecting inflation, real-world costs and evidence of the additional costs of disability. DFI also stressed that the initial payment must be a starting point, not a limit, and that disabled people need a sustained commitment to a payment that reflects their additional costs.

DFI and its members will continue to engage with Government on a fair, evidence-based payment model, with clear timelines and a commitment to increasing the payment over time to support disabled people’s independence, participation and equality.