Families and businesses in Northern Ireland are set to receive breathing space from Budget 2026, as the government moves to ease living costs, support jobs and back public services amid global uncertainty and higher energy bills.

Chancellor John Healey announced measures addressing fuel costs, food prices, wages and pensions, alongside continued funding for the Northern Ireland Executive.

The 4% tariff on kerosene is being scrapped, benefiting the 61% of Northern Ireland households that use heating oil. The 5p cut to fuel duty is extended for a further six months to 30 June 2027, while the 3.7p reduction to red diesel duty remains in place for farmers, rural hauliers and other high-usage sectors. There will also be a permanent enhancement to the generosity of mileage rates for people who drive for work.

To help with grocery costs, tariffs have been removed from more than 100 food products, including chocolate and fruit juice. Together with suspensions introduced earlier this year, households could save up to £21 a year.

By the end of this Parliament, around 40,000 low-income pensioners in Northern Ireland will pay less or no tax on their State Pension income, reflecting a reduction in the disproportionate administrative burden of collecting small amounts of tax.

Pay will rise again, with the National Living Wage increasing by 3.9% to £13.21 per hour. The National Minimum Wage will also go up by 3.9% to £11.27 for 18 to 20-year-olds, and by 3.9% to £8.31 for 16 to 17-year-olds and eligible apprentices. Following April 2026's thresholds, 140,000 workers in Northern Ireland saw a direct uplift. Growth measures include £7.5 million of new funding for Queen's University Belfast's CSIT Cyber AI Hub, creating jobs and skills in cyber security and AI. A further £1 million will support a Northern Ireland Investment Summit to showcase the region's strengths to global investors. The Northern Ireland Executive will also receive funding to establish its own version of the British Industrial Competitiveness Scheme, aimed at cutting electricity costs for energy-intensive manufacturers.

The Budget fully funds the UK's £15 billion Defence Investment Plan, including £4.7 billion that previously had no allocation. Defence spending supports 1,000 industrial jobs in Northern Ireland, up 25% since 2025.

The Executive will receive an additional £270 million for public services over the Spending Review period to 2030. This comes on top of the £740 million provided through Budget 2025 and Spring Forecast 2026, and is in addition to the UK Government's £1.5 billion offer over three years to help the Executive agree a budget. Northern Ireland's devolved services, including health, education and housing, are funded via the block grant drawn from UK-wide taxation.

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."