The Taoiseach says it is too early to say whether he will have the money to increase the State pension in the next Budget.

That is despite clear government commitments that the state pension will continue to rise, at least in line with inflation.

Leo Varadkar says Budget Day - which is on October 10th - is still too far away to have decisions nailed down.

Meanwhile the Fianna Fáil leader Michael Martin has weighed in on the issue following an article in the Sunday Independent.

He has described a story in the paper as 'both ridiculous and without foundation'.

The article in question reports a 'war of words' between Micheál Martin and the Taoiseach over increases to the old age pension.

Deputy Martin said the issue has not even been discussed at this stage: "The Confidence and Supply Arrangement provides for an increase in the old age pension over the next number of years, and last year we were successful in securing a €5 increase as part of that agreement.

"Neither party has entered into discussions on the specifics of the next budget – but as was made clear in the article, Fianna Fáil wants to see pensioners looked after in Budget 2018.  However, no specifics have been discussed at this stage.

"Today’s report is disingenuous and fails to reflect the reality of the situation".