No €15 increase to old age pension in upcoming budget
Charities have sought pension increases of up to €23 a week for pensioners. File Picture
A €15 increase in the old age pension has been ruled out by the Government, with a €10 rise now likely.
Senior sources familiar with the budgetary process have said a much-anticipated increase of €15 a week is “a bit of a stretch”, with just €1.3bn of unallocated funds available for new measures.
Charities and community groups have sought increases of up to €23 a week for pensioners, and others relying on welfare, in order to fully counteract the impact of inflation — a €15 increase was viewed as the minimum required.
However, the limited resources and the need to focus on the energy crisis means other measures, such as increasing the living alone allowance, fuel allowance, and non-core welfare payments, are being prioritised.
The also understands that there is likely to be a further reduction to the pupil-teacher ratios in the budget.
While a meeting between Public Expenditure Minister Michael McGrath and Education Minister Norma Foley is not scheduled until next Thursday, it is understood that she is seeking more funding for additional teachers to reduce class sizes from the current average of 24 pupils per teacher.
It is also understood the temporary reduction in public transport fares is to be extended well into 2023, with a view to making the reduced fares permanent.
Back in May, public transport fares were reduced by 20% for Dublin Bus, Luas, Go-Ahead Ireland, Iarnród Éireann, and Dart services.
Meanwhile, the Taoiseach has said the Government will use its dividend from soaring profits at ESB to help people struggling with energy bills.
“Given the scale of the profits on the back of the energy crisis, I think Government can look forward to a much higher dividend than would have been the case prior to the crisis," he said.
