Ministers are pushing for a €12 weekly pension increase by Budget 2026, against a backdrop of tighter financial conditions and potential backtracking on tax cuts. The focus remains on fulfilling promises made during the election concerning pension increases to €350 per week. Some ministers express doubt about sidestepping this commitment. Additionally, debates are emerging around other welfare payments and targeted support for vulnerable families. Considering ways to reduce child poverty through a second-tier child benefit, costing €773m, is also high on the agenda, highlighting the government's careful approach amid fiscal constraints.
Despite tighter budget constraints, the government aims for a €12 weekly pension increase by Budget 2026, reflecting commitments despite potential income tax cuts being reconsidered.
Taoiseach Micheál Martin emphasizes support for children in poverty and the disabled, indicating a preference for targeted payments over basic increases to welfare programs.
Failure to deliver on pension increases could lead to public backlash, as ministers acknowledge the financial envelope will likely be tighter than hoped.
The ESRI underlines that a second tier of child benefit is essential to combat child poverty effectively, costing €773m but significantly reducing poverty metrics.
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