€5 pension increase would 'eat up' all funds says Leo Varadkar

Promises to increase the state pension look set to be stalled after Social Protection Minister Leo Varadkar admitted a rise of €5 a week in next month’s budget would eat up all his funds.

The revelation that a €5 increase in the state pension next year is off the cards throws into doubt the Fine Gael pre-election commitment to a €25 hike in pensions by 2021.

Mr Varadkar’s confirmation that a €5 hike would take up all the Social Protection spending comes as Taoiseach Enda Kenny this week warned the budget must be Brexit-proofed.