A new childcare package and an increase in the State pension means the youngest and eldest in the country will benefit under Budget 2017 writes political reporter Elaine Loughlin.

Minister for Public Expenditure and Reform, Pashcal Donohoe has announced the details of the new childcare package which was hammered out with Children’s Minister Katherine Zappone.

Pensioners will receive an extra €5 per week from March.

There will also be increases in the carer’s allowance, disability allowance and job-seeker’s benefit. These payments will jump by €5 a week, in line with the increase in the State pension.

Mr Donohoe added: “In addition, I am pleased to announce the payment of an 85% Christmas bonus for Social Welfare recipients in 2016.”

Early years funding will rise from €345m in 2016 to €465m in 2017 – an increase of 35%.

Mr Donohoe said: “It is good for children, good for families and good for our economy.”

He added: “The increases in funding allows for an additional €35m to support the provision of both universal and targeted services for the care, development and well-being of children and young people.

“This included the introduction of a new Single Affordable Childcare Scheme from September 2017, which will provide both means-tested subsidies, based on parental income, for children between six months and 15 years and universal subsidies for all children aged six months to three years,” Mr Donohoe told the Dáil.