Tanaiste 'not convinced' that pension and dole Budget increases should equal

Irish Daily Mirror

3 days ago

Tánaiste Simon Harris has suggested that the rate for those receiving Jobseeker's Benefit should not increase as much as the pension rate in the budget.
It comes as Finance Minister Paschal Donohoe warned that choices will have to be made in Budget 2026 as he remained non-committal on the prospect of tax cuts for workers.
In the last budget, Fine Gael and then social protection minister Heather Humphreys had sought to increase the Jobseekers' payment and the pension by different amounts. At one point, it was suggested that the dole could rise by €10 a week and the pension could go up by €15.
However, there was pushback by the Green Party, who said that they were 'uncomfortable' at the idea of making a distinction. There was a smaller level of resistance from Fianna Fáil.
Senior Government sources told the Irish Mirror that it is too early to make any decisions on any budget matter, noting that the Summer Economic Statement has yet to be published to set out the parameters of Budget 2026.
Speaking to reporters after a meeting of the Government Trade Form, the Tánaiste opened the door to a distinction being made between pension increases and Jobseeker increases in Budget 2026.
Mr Harris told reporters that he did not want to 'open another budget line' at the press conference.
He continued: 'Other than to say I do always think there's merit in not looking at social welfare payments with uniformity across the board.
'We've been talking a lot about college fees in the last couple of days, unexpectedly, perhaps.
'But, roughly speaking, the equivalent of €1.20, €1.25 on every social welfare payment is roughly the equivalent of reducing college fees by €1,000.
'Budgets are all about choice and they're all about balance and there's only so much money in the pot.
'So I'd keep an open mind on that. I'm not convinced that you need to see as significant a rise in the dole as you do on the pension, for example, at the time when our country's in full employment and there's lots of supports out there for people getting into work.
'There's other supports out there for people who can't work for very many good reasons. 'That's my view. We'll thrash all this out in the budget. We've quite a way to go.'
At the same press conference, Finance Minister Paschal Donohoe warned that the impact of tariffs will have an impact on the growth of the Irish economy.
He suggested that while there will still be budget surpluses, the surplus amount will be revised.
He also repeated that while new jobs will still be created, they are likely to be created at a lower level because of the potential impact of tariffs.
Minister Donohoe also warned that choices will have to be made as part of Budget 2026 and would not commit to changes to tax rates and bands for workers.
He stated that the Programme for Government stated that these things will be reviewed in case of an economic shock and that people's take home pay should increase as a result of actual wages going up.
He said: 'In relation to Budget 2026 it is a budget that is going to prioritise the creation and the retention of jobs and keeping our public finances safe while investing in our future.
'We will make decisions closer to the time regarding what is the way in which we will do that. 'Clearly, if the government does decide to make investments and decisions in particular areas, we will then decide there are other things that we cannot do.
'That's the right thing to do and we'll make the case for that on Budget Day.
'But this will be a budget that will contain important measures with regard to investment in our country's future and in terms of people's appetite.'
The row over college fees and whether or not they will return to €3,000 following Budget 2026 continued to dominate Dáil proceedings on Wednesdays.
In response to Sinn Féin leader Mary Lou McDonald, Higher Education Minister James Lawless noted that it is July and the budget will be announced in October.