Elderly are among the biggest winners

The old age pension is to increase by £10 a week from April 2001 and everybody aged 70 and over will receive a medical card regardless of income from July next.

Free schemes, covering television, electricity, gas and telephone rental allowances, will be extended next May to all pensioners aged 70 or older, regardless of household circumstances and income.

The Irish Medical Organisation said it was "perverse" to give the medical card to everyone over 70 regardless of how well off they may be while it was denied to more than 250,000 people whose income was just above the means-test limit.

In his Budget speech, the Minister for Finance, Mr McCreevy, said the Government wished to recognise "the part played by the workers of yesterday in laying the foundation for so much of our current economic success".

For pensioner couples, aged 66 years and over, a £20-£25 weekly increase has been granted. An additional £10 a week will be paid to pensioners living on islands.

The fuel allowance has been brought forward to apply from the first week of October and will be payable until late April. Income disregard for those qualifying for the allowance is being increased from £30 to £40.

An additional measure is the elimination of the existing gap between the old age contributory pension and the contributory pension for widows aged 66 years and over. Widows who qualify for the benefit will receive an extra £12.90 a week next year, bringing the widow's contributory pension to £102.

The extension of free schemes will apply from next May. The invalidity pension and blind person's pension for people aged 66 and over has been increased by £10 for single people and £25 for couples.

The Minister said the Government was reducing the tax burden on the elderly and increasing the income tax exemption limits by £1,000 for a single person and £2,000 for a married couple.