There is "merit" in unemployment benefit not rising at the same rate as other social welfare payments, the Tánaiste has said.

Fine Gael leader Simon Harris said he is not convinced there is a need for a "significant rise in the dole", when we are near full employment, compared with pension rises.

He said he is keeping an "open mind" in relation to budgetary measures, saying there is "only so much money in the pot".

He was speaking amid a government row over student fee changes. Speaking to reporters yesterday, Harris said: "I do always think there’s merit in not looking at social welfare payments with a uniformity across the board, because we’ve been talking a lot about college fees in the last few days, unexpectedly perhaps.

"Roughly speaking, the equivalent of €1.20-€1.25 on every social welfare payment is roughly equivalent to reducing college fees by €1,000.

"So budgets are all about choices, they’re all about balance, and there’s only so much money in the pot.

"I’m not convinced you need to see as significant a rise in the dole as you do in the pension, for example, when our country is in full employment.

"[There are] lots of supports out there for people getting into work, when there’s other supports out there for people who can’t work," he said.

Photo: Simon Harris. (Pic: Leah Farrell/© RollingNews.ie)