Social welfare recipients can expect to see a bump in payments in October, Tanaiste Leo Varadkar has signalled.
It comes as the Government is under pressure to give further financial assistance to households across the country who are facing soaring bills.
When asked if increased social welfare payments may be introduced instantly once the Budget is announced, Mr Varadkar said: “That is possible.
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“The Budget is announced on Budget Day and then there's the Finance Act and there's a social welfare act as well.
“But actually a lot of the weekly rates can be increased by ministerial order so it doesn't require legislation to go through the Dáil.
“So that can be done more quickly.
“The tax measures, for example, and you know, from previous budgets before sometimes tax measures are done on the night, and you'll know that in the Budget last year, we actually brought in the fuel allowance increase right away so that can be done and that's certainly an option.”
The Fine Gael leader wouldn’t be drawn on whether social welfare recipients would get more than last year’s Budget - €5.
However, he said last year’s Budget was based on inflation that was at the time running at 2% but inflation is now running at almost 8%.
He added: “So I think it stands to reason that the pension increases and social welfare packages will have to be greater in 2023 than they were this year.
“That's only right.
“The cost of living is rising and the economy's in good health.
“We've got more people at work than ever before.
“Trade is breaking old records and the public finances are in pretty good nick.
“So you know, when the Government can protect people's living standards, it should seek to do so.”
Despite stating last week that interim cost of living measures could be introduced before October due to the rising cost of living crisis, Mr Maradkar appeared to row back on such plans.
It comes as Finance Minister Paschal Donohoe and the Taoiseach ruled out any movement before October.
When asked about the u-turn, Mr Varadkar said: “Well, we've taken action already, as you know, so we've implemented 4.4 billion euros worth of measures to help with the cost of living from reductions in taxation, excise VAT, to assisting people on the lowest incomes in particular with an increase in the fuel allowance.
“So we have already intervened €2.4 billion euro in intervention so far this year.
“We have nothing planned until Budget Day.
“We want to focus really now on a package for Budget Day.
“But those are measures that could come into effect, you know, almost immediately within the days after the budget in October, for example, and then others that would then take effect next year.
“So it's not that measures will be announced in October and none of them introduced in January.
“We're looking at the ones that we can introduce in October and November.”
