A proposed €7.50 rise in the State pension would be a “paltry increase which doesn’t even keep pace with inflation”, the Dáil heard a week ahead of Budget 2027 as speculation continued about what measures it would contain.
Social Democrats deputy leader Cian O’Callaghan said leaks about the €7.50 pension increase had been “notably consistent” but it would be a “clear betrayal” of pensioners by Fianna Fáil and Fine Gael.
In the last election “you made a firm commitment to increase the State pension to €350 a week over the lifetime of your Government”, he told Taoiseach Micheál Martin.
Fianna Fáil “went even further” and “you said you would increase core social welfare payments by at least €12 a week”.
He said pensioners were relying on the Taoiseach to keep his word. Last year pensions “were only increased by €10 and now it looks like you will be betraying pensioners again”.
The Taoiseach told him reports about pension increases “may not be accurate at all”.
He stressed “we’re conscious of the cost of living, conscious of the impact on a whole range of people”. The social protection budget had grown exponentially to close to €2 billion and €10 “was well above inflation for the old-age pension”.
O’Callaghan said “leaks on the budget aren’t coming from the Opposition, they’re coming from the Government”.
The headlines “have pensioners worried sick” and he asked if it was a “cynical ploy to manage expectations”.
That amount would “tip a huge number of older people – many of whom are already barely scraping to get by – into poverty”.
He said pensioners are “very anxious and upset” at the reported increase. “The price of their food shop is going up every other week, and their energy bills are through the roof.
“Many are living in fear of the coming winter because they have no idea how they are going to keep themselves warm.”
Their budgets were “already stretched to the limit” and the Government is preparing to “deal them another hammer blow”.
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Social Democrats deputy leader Cian O’Callaghan. Photograph: Sam Boal/Collins Photo Agency
The Dublin Bay North TD called on the Taoiseach to either “stick to your word” and provide a €12 increase or follow the Social Democrats’ alternative budget and award a €15 increase.
The Taoiseach reiterated reports in the newspapers about pensions “may not turn out to be accurate”.
He added: “Other supports that we introduce through social protection” and through taxation would be “very beneficial” for pensioners.
He insisted “we believe strongly in a strong social safety network” and in supporting pensioners and had done that in successive budgets in the last six years.
Martin added that Ireland is in the “top tier” across the EU “in terms of social welfare distribution”.
He insisted they “will fulfil the programme for government over the lifetime of this Government”.
In the programme, the Government promised to “progressively increase pension payments”.
Later the Taoiseach told Independent TD Mattie McGrath it would make no sense to stop the carbon tax.
If the tax goes below a certain threshold, “you then have to pay carbon tax to Europe” and that made no sense because the carbon tax “is used for farmers, it’s used for the retrofitting and the energy saving measures”.
The Tipperary South TD said home heating oil had more than doubled in price. The carbon tax “must be halted, not paused” and there must be further “immediate supports” for fuel and home heating oil.
Fuel supports provided by Government are “like snow off a ditch, they’re gone. There’s no impact at all from them”, he added.
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