Budget battle as pension hikes set to be delayed

A mooted six-month delay to planned pension hikes next year is at the centre of a last-minute budget battle between Fine Gael and Fianna Fáil as both parties struggle to control the Budget 2017 electoral rewards.

Social Protection Minister Leo Varadkar clashed with Fianna Fáil’s finance spokesman Michael McGrath and Public Expenditure spokesman Dara Calleary yesterday after suggesting the delay is needed to ensure people with disabilities, the blind, widows, and carers also benefit from next year’s financial plans.

On Thursday night, after a special Cabinet meeting saw the majority of budget proposals signed off by ministers, Mr Varadkar said he wants to delay a widely suspected €5 pension rise until the second quarter — April to June — next year.