Catherine Callaghan (Carlow-Kilkenny, Fine Gael)
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13. To ask the Minister for Employment Affairs and Social Protection if he will increase his departmental budget allocation in budget 2027 to those in receipt of the State pension, in response to the increased cost of living as a result of the conflict in the Middle East; and if he will make a statement on the matter. [31283/26]

Dara Calleary (Mayo, Fianna Fail)
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I thank Deputy Callaghan for her question.

As part of budget 2026, I announced a €1.15 billion package of new social protection measures, which included a €10 weekly increase across social welfare schemes from 1 January 2026. This raised the maximum personal rate of State pension contributory to €299.30 per week and non-contributory to €288.00 per week.

These increases were set above the prevailing consumer price index, CPI, with pension rates rising by 3.46% for contributory and 3.60% for non-contributory.

In determining these budget increases, consideration was given to the most recent available consumer price index data and the broader cost of living pressures were also assessed in areas such as housing, energy and food.

I am very conscious of the impact that increases in the cost of living are having on those who rely on social protection supports, particularly older people who may not have the ability to get extra income, but also carers, those with disabilities and low-income families.

Additional relevant measures contained in budget 2026 included a €5 increase in the fuel allowance, which brought it to €38 per week, and a Christmas bonus was paid to pension recipients in December. In March, as the Deputy knows, the Government also approved an extension of the 2025-26 fuel allowance season by four weeks, which will see it continue to the end of this week, as part of the temporary and targeted measures to help those most vulnerable to rising energy costs. That included pensioners, and over 460,000 households are in receipt of the fuel allowance payment.

While it is not possible at this stage to set out specific budget parameters for budget 2027, we are very much closely monitoring developments. All changes to the current rate of payment for contributory and non-contributory payments will be considered in a budgetary context but with a very sharp eye on the pressures our pensioners are facing.

Catherine Callaghan (Carlow-Kilkenny, Fine Gael)
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Gabhaim buíochas leis an Aire for that response. I absolutely welcome all the measures he outlined that were contained in budget 2026 and that had a good impact on the State pension and those in receipt of it. However, what I really need to stress is that we are not living in ordinary times. There is a war raging in the Middle East. It is affecting everyone across Europe and in Ireland. There is no end in sight. What I am hearing from State pensioners in Carlow and Kilkenny is their worry and anxiety about what the winter is going to bring and how they are going to manage. We are all aware that people who are in receipt of the State pension, be it contributory or non-contributory in nature, have contributed to this country. They paid into the pot in the hope that they would be able to sustain themselves in their latter years, not in the context of living any kind of extravagant lifestyle but just so they would not have to worry about paying household bills and everyday expenses. If it is not going to be possible to increase the pension, what will it be possible for the Department to do?

Dara Calleary (Mayo, Fianna Fail)
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I am not saying that it is not going to be possible to do anything. We are obviously not in the budget situation yet, but I am very aware of the pressures people are under and that those pressures will increase during the winter. That is why, in the context of our initial €750 million response, we have made it clear that we may have to produce further responses. However, it is important that we give ourselves the ability to be in a position to respond, and do so quickly, if this energy crisis continues through the winter.

I had a very good discussion with Deputy Colm Burke earlier around the fuel allowance and the living alone allowance. I am going to be particularly focused on the living alone allowance because, for many older people who are left alone by being widowed or through separation, their expenses and the cost of running large houses remain but their income has been halved. I am going to be very focused on the living alone allowance as well as looking at how we continue to use the fuel allowance on in a targeted manner to support those most at risk of energy poverty, which includes our pensioners.

Catherine Callaghan (Carlow-Kilkenny, Fine Gael)
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I welcome the Minister's focus on the fuel allowance. It is a very good scheme but is not agile enough to cope with the increases that are going to happen. The Minister said, "if this ... [war] continues". It will no doubt continue into the winter and it might still be with us this time next year. That is what I understand and feel, and our State pensioners are feeling that too. They would like more communication and a chance to know what measures might be possible to alleviate the worry and anxiety they are feeling. Bear in mind that said worry and anxiety are then passed on to their adult children, which means that entire families are concerned about this. It is also really important to recognise that these State pensioners, and pensioners in general, are on fixed incomes. They do not have any option or any other avenue whereby they can supplement the income they have. In fact, I sat with a lady last week who was in tears because she is dipping into her savings - money she thought she would be able to give as an inheritance to her children and grandchildren. Now she is utilising it for everyday cost-of-living expenses. I appreciate the work the Minister is doing, but I would love it if we could have some communication to allay the fears of our older generation, the people who helped to build this country.

Dara Calleary (Mayo, Fianna Fail)
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I agree, particularly in relation to the fixed nature of pensioners' incomes and the challenges they face. They will be a priority for me in the context of budget 2027. I assure the Deputy of that, not just in the context of 2026 but also with regard to the increased energy costs they will face. I am very much aware of their need to have security.

In respect of information, unfortunately, we will not be able to do that until budget day, but the Deputy should be very aware that I look forward to working with colleagues across the House in relation to providing them with security and support. They should not have to have that worry at this point in their lives. They have given enough. They have done and worked hard enough for this country and we should give them comfort and security now that they are in retirement. As Minister for Social Protection, I will certainly continue to invest in our pensioners - not just in the weekly rate but the supports and other payments that are available, such as the living alone allowance, the fuel allowance and access to other payments.

As I have said throughout the morning, we have done a lot of work in recent weeks to give information to Oireachtas Members about additional needs payments and community welfare supports that are available. I encourage Members to use those supports.