Key measures of Budget 2021: No increase for pensioners, welfare 'Christmas bonus' to be paid

The Department of Finance has revised its outlook for the economy this year significantly upwards. Picture: Gareth Chaney/Collins

There will be no €5 increase in the old-age pension or any return to the top €350-a-week pandemic unemployment payment (PUP) in next month’s budget, senior ministers have warned.

Cabinet sources from across the Coalition have said there is just €900m in unallocated spending for ministers to fight for, meaning very few new initiatives will be approved.