The Social Protection Minister Leo Varadkar has warned that it will not be possible to deliver on all demands for increases in social welfare payments in Budget 2017.

It was reported yesterday that Minister Leo Varadkar is considering bringing in some increases to payments at the middle of next year instead of in January, in order to save money.

Both Fianna Fáil and Fine Gael have previously stated that the Old Age Pension should be increased by €5 a week.

However, a mooted six-month delay to planned pension hikes is at the centre of a last-minute budget battle between the parties, reports Irish Examiner political correspondent Fiachra O’ Cionnaith.

Social Protection Minister Leo Varadkar clashed with Fianna Fáil’s finance spokesman Michael McGrath and Public Expenditure spokesman Dara Calleary yesterday after suggesting the delay is needed to ensure people with disabilities, the blind, widows, and carers also benefit from next year’s financial plans.

On Thursday night, after a special Cabinet meeting saw the majority of budget proposals signed off by ministers, Mr Varadkar said he wants to delay a widely suspected €5 pension rise until the second quarter — April to June — next year.

While officially the decision, which remains under discussion this weekend, is about ensuring that the most vulnerable benefit from the economic recovery, it has been widely seen as an attempt to reduce Fianna Fáil’s chances of gaining public support as any push to impose a pensions hike from the start of the year would be framed as ignoring other at-risk groups.

Mr McGrath warned any pension hike stalling would not be “credible” as rises traditionally take effect from January 1. However, he last night said his party “would certainly listen” regarding a short delay until April.

The move emerged as it was confirmed the amount of money available to Government next year will be €200m more than planned, with the total sum available for Budget 2017 now standing at €57.97bn.