The finance minister has predicted a deal will be reached today over plans to increase the state pension in tomorrow's Budget.

Fianna Fáil has been objecting to plans to delay any increase and not have it kick in in January.

But Fine Gael has been keen to either delay or reduce the proposed increase, in order to keep money aside for other areas.

A proposed €5 weekly increase - as Fianna Fail has been demanding - would cost in the region of €150 million a year. 

Social protection minister Leo Varadkar is understood to be unwilling to commit this amount to the state pension, as it would reduce his spending power for other 'targeted' payments such as those to windows, carers or the blind.

Our political correspondent Gavan Reilly reports: