Kenny rules out cut to weekly pensions

A cut to weekly pensions in the upcoming budget has been firmly ruled out by Taoiseach Enda Kenny.

Concerned at the damage that could be done by claims an across the board €10 a week slash to the payment was in the offing, the Government broke with its usual pre-budget silence to reassure pensioners and head off any backlash.

With budget horse-trading intensifying between the Coalition parties, Labour TDs warned any move against pension rates would be a “political death sentence” for the Government.

Mr Kenny moved to calm the fears of pensioners that their weekly payments would be hit in the looming October budget.

“The programme for government contains a clear commitment not to touch the old-age pension. The Government believes that the necessary cuts and savings required can be secured without reference to the old-age pension,” said the Taoiseach’s spokesperson.

However, it remains unclear whether other benefits, such as widow’s pensions and TV allowances, remain on the table for cuts.

One Labour TD said any move against pensioners would be disastrous.

“It would be the death sentence for this Government. There is just no way we could go along with that,” the deputy said.

Fianna Fáil has demanded senior Cabinet figures make a clear public statement that pensioners will be spared in the budget which is aimed at achieving €3.1bn worth of cuts and taxes.

Sources in Joan Burton’s Social Protection Department said that the pension was covered by the programme for government commitment to protect “core” welfare payments as it was a weekly benefit, not monthly like child benefit, which was sliced back in last year’s budget.

Coalition parties have been fighting a public battle over the direction of the budget, with Labour insisting the Anglo prom note deals means there is more room for manoeuvre and less need for austerity-led cuts, while Fine Gael has insisted extra resources should go to job creation.

Ms Burton has made it clear she feels it is not possible to meet the target of €440m in her department’s funding for this year as the education and health budgets come under renewed focus for cutbacks.

The Government is under pressure from the Troika to stick to its plan to slash €3.1bn from the economy in the budget, while some ministers argue the Coalition could cut less and still reach its percentage targets for deficit reduction over the coming two years.

The last Fianna Fáil/Green government was forced into a humiliating U-turn on medical cards for the elderly after its cutbacks were met with a surge of “grey power” anger as thousands of pensioners demonstrated on the streets.