Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context

As Minister for Social Protection, I am acutely aware, as we all are, of the pressures faced by pensioners given increases in the cost of living over the last number of years.

On Tuesday 7th October 2025, I announced a €1.15 billion package of new social protection measures for Budget 2026.

The Government has prioritised targeted permanent measures as part of Budget 2026 to support pensioners, which are as follows:

• A €10 increase in the maximum weekly rate of all State pensions from January 2026, with proportionate increases for Qualified Adults and those on reduced rates of payment. This will bring the maximum personal rate of State Pension (Contributory) to €299.30 per week, and the maximum personal rate of State Pension (Non-Contributory) to €288.00 per week.
• A €5 increase in Fuel Allowance from €33 to €38 per week from January 2026. This will provide an additional €140 during the annual fuel allowance season which will help to offset the impact of increasing energy costs.

As part of Budget 2026, people in receipt of State Pension (Contributory) or the State Pension (Non-Contributory) will also receive a Christmas bonus payment in December 2025.

Data from the Central Statistics Office (CSO) show that consumer prices have increased by 2.7% over the 12 months to September 2025. The €10 increase to State Pension rates represents a 3.46% increase in State Pension (Contributory) and a 3.6% increase in State Pension (Non-Contributory). This rate increase will continue to assist in mitigating the impact of the sustained period of price increases for pensioners.

I note the publication of the Budget 2026 MESL Impact Briefing by the MESL Research Centre at the Society of St Vincent de Paul. Their briefing examines the impact of Budget 2026 on adequacy levels for different types of households. Several recommendations in the MESL pre-Budget submission have been delivered or exceeded in Budget 2026. For example, the MESL submission did not recommend an increase in either the rate of State Pension or qualified adult rates. Both of these rates have increased. Under the MESL proposal, the core payment to a two adult pension household would have stayed at €548.70 per week. This has increased by €19 to €567.70 per week.

The Government is aware of the impact of inflation on families and households, particularly for people who are on a fixed income, and people who rely on a social welfare payment for all or most of their income.

That is why the Government has committed, under the Programme for Government - "Securing Ireland’s Future", to increase core welfare payments over the lifetime of the Government. As per the Programme for Government commitment, in Budget 2026 we are progressively increasing weekly pension payments and the Government will protect core welfare rates while ensuring that available resources are targeted.