The State Pension is likely to increase by at least €7.50 in the upcoming Budget.
Last year, the State Pension was increased by €10 a week, but this year’s rise is expected to be lower as the Government considers directing more money towards targeted supports for households facing higher energy costs.
The final increase has not yet been confirmed, with ministers continuing discussions ahead of the Budget announcement. The weekly rise could be higher than €7.50, although it is expected to remain below €10.
Other core social welfare payments, including Jobseeker’s Allowance and Maternity Benefit, are also being considered as part of the Budget package.
The Government is looking at additional measures to support people affected by rising household costs. These could include an increase in the Fuel Allowance, a possible winter bonus payment and a higher Living Alone Allowance.
A new cost-of-disability payment is also being considered, while ministers are examining measures aimed at tackling child poverty.
Childcare is another key area of the Budget discussions. The Government is considering increasing the subsidy available through the National Childcare Scheme, which would reduce the amount parents pay. The changes are expected to take effect from January rather than later in the year.
The scale of any increase in welfare payments will also have a significant impact on Government spending. Each €1 increase in the core welfare rates costs the Exchequer approximately €75m, meaning a €10 rise would cost around €750m.
Energy costs are expected to remain a major focus, with the Government examining a number of measures to help households cope with higher bills.
These include a possible reduction in carbon tax on home-heating oil, which could benefit up to 700,000 households, as well as a potential €5 increase in the weekly Fuel Allowance.
Reduced excise duties on petrol and diesel are also expected to remain in place into early next year, providing motorists with some certainty while international energy pressures continue.
Ministers have acknowledged that the Government cannot completely protect households from changes in global energy prices. Instead, the focus is expected to be on directing available funding towards those most affected by the increased cost of living.
