€10 increase for pensions as well as carer's and disability allowances in next budget

A €10 increase in the State pension alone would cost the State around €377m extra each year.

A €10 increase for pensioners and those on carer's and disability allowances is expected as part of a social welfare package in the budget.

Social Protection Minister Heather Humphreys has confirmed that she will be seeking increases to the three payments and has not ruled out improvements to other welfare supports.

It comes as tensions are already mounting within the coalition over budget measures, with Tánaiste Micheál Martin strongly hitting out at three Fine Gael junior ministers who suggested a €1,000 tax cut for workers.

A €12 across-the-board increase to social welfare payments was rolled out as part of Budget 2023 along with a number of lump sums payments aimed at easing the cost of living.

Coalition sources have now said a further weekly increase of around €10 is being considered for those receiving the State pension, but admit it would be "impossible" to do this without providing the same level of top-up to people in receipt of carer's allowance and disability allowance.

"There are many who need support, particularly our pensioners, particularly people who have disabilities, and particularly the carers," Ms Humphreys said.

"I expect there will be an increase, but again, I have to sit down and I have to talk to [Public Expenditure] Minister [Paschal] Donohoe in that regard."

Ms Humphreys also strongly indicated there will be improvements in the budget for those in receipt of other allowances, including jobseekers' payments.

"I'd be looking right across the board at the different payments that we make.

"I've always been ambitious in my ask, let's say.

"We did have a lot of lump sum payments this year and last year, and I think it wouldn't be unreasonable to expect an increase in social welfare payments," added Ms Humphreys.

Coalition tensions

While no indication has yet been provided as to whether child benefit will change, measures to help struggling families are also being considered, with Ms Humphreys signalling a desire to further expand the hot school meals programme.

Social Protection Minister Heather Humphreys believes 'it wouldn't be unreasonable to expect an increase in social welfare payments'.

A €10 increase in the State pension alone would cost the State around €377m extra each year.

However, the amount is far short of the €20 increase that a number of organisations, including Age Action and the National Disability Authority, had lobbied for ahead of the last budget.

Fianna Fáil TD John McGuinness called for an increase in the pension of €15 to €20 at a meeting of the parliamentary party last night.

Tensions have spiked in the coalition after three Fine Gael junior ministers — Jennifer Carroll McNeill, Martin Heydon, and Peter Burke — stated in a newspaper opinion article that the budget should include a €1,000 tax cut for workers, a proposal that has been slammed as "nuts" by senior Fianna Fáil figures.

Tánaiste Micheál Martin strongly criticised the three during a private Fianna Fáil meeting last night. 

Mr Martin made it clear that Finance Minister Michael McGrath should be given the space and respect to work on budgetary measures and he would ensure that this happens.

However, Fine Gael members last night told the Taoiseach that the party must push for its own budgetary tax wins despite disquiet from Fianna Fáil.

A number of Fine Gael members stressed that tax is "Fine Gael policy territory" at a meeting of their parliamentary party.

John Paul Phelan, Paul Kehoe, and Alan Dillon were among those who called for an increase in the entry point to the highest rate of tax to reward those workers who are faced with significant childcare fees and mortgage repayments.

It is understood Michael Creed told the meeting that Fine Gael should not be taking lectures from Fianna Fáil who "crashed the country" and the Green Party who are "still on probabtion".

Meanwhile, Ms Humphreys said she is "fully committed" to introducing a pensions auto-enrollment scheme from next year.

"I know that there are 750,000 people in this country that do not have any pension provision. As far as I'm concerned, I have the train on the tracks now."