Pensioners, carers, people with disabilities, and poor set to benefit from 'broad' budget package

An all-inclusive social benefits package is close to being agreed for the budget which will see increased payments shared among pensioners, carers, people with disabilities and impoverished families.

A rush to claim credit for the wins for vulnerable groups is now under way ahead of the Fine Gael-led government unveiling the budget next Tuesday.

The Cabinet held a special meeting last night where increased amounts for the budget were discussed, believed to be around €1.2bn.

The increased spend from the original €1bn flagged is likely to go into health and social protection, said a government source last night.

Fianna Fáil, who support the Government, also look set to concede ground on their €5 pension rise demand if budget gains are instead spread among other recipients dependent on the State.

A half a percent cut has also been more or less agreed for the lowest three levels of the USC, sources said.

But Government partners the Independent Alliance are understood to be outraged over their demands on disability allowances and rural payments not being met.

Taoiseach Enda Kenny was forced to intervene and attended two meetings of Alliance ministers yesterday in Government Buildings over the budget impasse. Junior minister John Halligan also participated in a conference call from Japan.

Alliance ministers are fighting for the restoration of the bereavement grant, higher farm assist payments, more employment in rural social schemes and fuel allowance increases among other issues. The Alliance want a €19 million domiciliary package that will benefit around 11,500 people.

Alliance ministers are preparing for a series of intense phonecalls over the weekend but one source said they may not support the budget.

Instead, Fine Gael and Fianna Fáil look set to claim any credit for a broad social benefits package.

Social Protection Minister Leo Varadkar revealed yesterday that he and Public Expenditure Minister Paschal Donohoe both believe any budget gains made by pensioners must be shared by others: “We are both of the view that if there is an increase in the weekly pension paid to people over 66 it’s very important that other vulnerable groups also receive an increase.

“And that includes carers, people with disabilities, people on the blind pension, widows under the age of 66, people in receipt of illness payments, and of course families who have children in poverty. It’s really important that the budget passes the fairness test,” he said.

Those categories accounted for somewhere between 400,000 and 800,000 people, added the Fine Gael minister.

Elsewhere, state aid rules are understood to be delaying agreement on Brexit-proof measures to help companies. The Government want special credit and resources allocated to Irish exporters impacted by sterling decreases and looming Brexit problems. Any financial aid though which benefited Britain over other EU member states could be problematic, said a Department of Finance source.

Government sources also confirmed the first-time buyer grant will apply on new homes up to the value of €400,000 and not second hand homes, as desired by Fianna Fail. First-time buyers could be in line for a tax rebate of up to €20,000 or 5% of the new home’s value.

Mr Donohoe also hinted yesterday that the childcare package in the budget will be limited. This is despite Fine Gael TDs pushing for subsidies for middle income earners as well as low income families.

Fianna Fáil’s demand for €100m to be allocated to third level in the budget also looks defeated.

The Department of Education has already committed to hiring an extra 650 teachers and will partly restore pay for newly-qualified teachers which will begin to kick in from January.