The Government looks set to agree on a €10 increase to the State pension and core welfare payments as discussions around Budget 2027 continue.
A number of departments are likely to sign off on the final details of their budget allocation over the next 24 hours.
Tuesday’s Budget is framed against the backdrop of a combination of record tax takes and rising energy and grocery bills.
The Coalition is now moving beyond an initial proposal to raise primary welfare payments and the pension by €7.50 to €10 instead.
It is understood that a €300 one off payment to fuel allowance recipients is under active consideration this weekend.
It also seems likely that moves will be made in the Budget to reduce the cost of gas for households, and this might involve a VAT reduction.
Along with this, the likelihood now is that there will not be any further increases to carbon tax on gas and home heating oil (kerosene) during the lifetime of this Government.
A cost-of-disability payment of more than €400 annually has been largely agreed, and the Living Alone allowance is also expected to increase.
A €100 culture card for 16 and 17-year-olds is also still likely to form part of the Budget, as money to develop it will be provided.
That means it remains a priority, but relevant venues and best way of delivering the card must be identified first.
The talks in the lead-up to the Budget have repeatedly been described as robust and even bruising as the Department of Public Expenditure seeks to keep the overall spending increase for next year at 6%.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
The view from the department is that the cycle of huge annual spending hikes had to be broken.
As the Budget continues to take shape, the Tánaiste and Finance Minister Simon Harris and his wife Caoimhe have welcomed the arrival of a baby girl, who was born yesterday.
A press conference on the pre-budget White Paper had to be cancelled on Friday afternoon as Mr Harris had to attend the birth of his daughter.
Separately, a fuel protest group is calling for emergency budget measures around fuel and energy costs, which it said are needed to help businesses remain viable and protect employment.
The group has submitted its proposals to Minister for Finance Simon Harris, which include measures on carbon tax, relief for households and private car owners, agriculture and fisheries, construction and housing, couriers and commercial transport, as well as tourism.
Engaging with unions
Meanwhile, discussing public sector pay talks, Fianna Fáil TD Catherine Ardagh, Minister of State at the Department of Justice, defended Minister for Public Expenditure Jack Chambers, saying that negotiations will commence immediately after the Budget.
Speaking on Saturday with Cormac Ó hEadhra on RTÉ Radio One this afternoon, Sinn Féin TD Mairéad Farrell said that Minister Chambers must engage with unions, adding that it was “madness” that he had yet to do so.
George Lawlor, Labour TD, said that the Government has not shown leadership to get people around the table and have talks on public pay.
But Minister Ardagh said that Minister Chambers is “refusing to sit down with preconditions”, adding that the Government has always been willing to engage with unions.
