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Senior Govt figures meet to finalise Budget details

Leinster House in Dublin

Getty

Some Government backbench TDs privately voiced concern today over the increase in the pension not matching last year's figure

A meeting of Coalition leaders ahead of next week's Budget has concluded at Government Buildings.

It is understood a proposal to raise the weekly State pension by €7.50 was still on the table for the party leaders, despite it falling below last year's rise of €10.

This was "in order to do more in other areas" one Coalition source stressed, while it is understood there was no discussion tonight of the potential to introduce energy credits.

Some Government backbench TDs privately voiced concern today over the increase in the pension not matching last year's figure while also expressing support for some form of targeted one-off payment to help householders with rising energy bills.

The leaders also discussed extending the rent-a-room scheme to incentivise people to rent out more than one room.

At present, homeowners can let a room tax-free up to €14,000 although this threshold could rise to €20,000.

One source described the talks as "cordial" with Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers due to hold further bilateral discussions with their Cabinet colleagues through the rest of the week.

Minister for Agriculture Martin Heydon is also likely to discuss with Mr Chambers how the fuel support scheme for farmers will be extended, a conversation which has taken on added political significance given the threat of further demonstrations from the organisers of April's fuel protests at a meeting in Co Westmeath last night.

Ahead of the meeting, Fianna Fáil Minister of State for Agriculture Niall Collins urged the Coalition leaders to introduce a significant package for rural Ireland that would deal with the spiralling costs of petrol, diesel and home heating oil.

Mr Collins said last year's Budget had not been "rural-proofed".

Opposition parties are pushing for targeted energy credits but the Taoiseach has ruled out the return of universal payments. However, there is support among some ministers and Government backbench TDs for some form of credit or one-off payment in next week's announcement.

Speaking in Cork today, Mr Martin said the Government would deal with the cost of living in next week's announcement in so far as it could with the resources available to it.

"We are hoping over the next two weeks to put the final touches to the budgetary package - which will deal with the cost of living in so far as we can with the resources available to us across a broad range of measures," he said.

"From income tax to childcare to the cost of disability and other measures in respect of energy. The details of that have yet to be worked out."

Mr Martin was speaking after a meeting in Co Westmeath last night organised by the group involved in fuel protests earlier this year.

The gathering heard calls for the Government to "abolish carbon tax across the board" and was attended by Coalition and Opposition TDs.

One of the organisers, John Dallon, confirmed he handed a document of budgetary proposals to Simon Harris at a Fine Gael event in Navan last Friday.

It is understood the document includes calls for energy credits in next week's Budget as well as increased supports for farmers and an extension of solar and retrofitting grants to reduce householders' reliance on fossil fuels.

Minister for the Environment Darragh O'Brien is already expected to extend a solar grant scheme later this week.

Minister for Social Protection Dara Calleary is to also meet the Minister for Public Expenditure later this week as the Coalition mulls what increase to core social welfare rates might be possible and whether it can match last year's rise of ten euro.

A cost of disability payment is also to be included in the Budget but its monetary value and eligibility criteria still need to be confirmed.

Separately, Sinn Féin is to use its Dáil time this week to call on the Government to "immediately cancel all planned public transport fare increases" and to "introduce free public transport for all children and young people under 18 years of age".

Adult fares for public transport will increase by an average of 15% from January 2027 under new fare structures announced by the National Transport Authority earlier this month.