Social Protection Minister Leo Varadkar has expressed his frustration at being constantly linked with the leadership of Fine Gael, writes Daniel McConnell, political editor.

Speaking this morning at an event at Dublin Castle, Mr Varadkar denied his plan to radically overhaul the social welfare system is part of his bid to succeed Taoiseach Enda Kenny, who will not lead the party into the next General Election.

Many saw his comments, which have not been signed off by Cabinet, as the effective launch of his challenge.

However, in typically unguarded fashion, Mr Varadkar said that such a view is not accurate.

“No matter what I say or do for the past six months, some people are linking to the leadership of Fine Gae…I am just waiting on the day when I sit on the toilet and some commentator somewhere decides that is part of some strategy,” he said.

“It is not. I am the Minister for Social Protection, these are my responsibilities."

Mr Varadkar said he would not “lose any sleep” over the speculation he was bidding for the leadership through a series of announcements.

The Dublin West TD has regularly topped opinion polls on who people want to succeed Mr Kenny, when he steps down.

However, given the parliamentary party within Fine Gael will have a significant say in deciding the race, some observers say Housing Minister Simon Coveney has the edge.

Mr Varadkar confirmed that his welfare reform proposals had not been brought up at Cabinet.

However, he said he had spoken to some of his ministerial colleagues on an individual basis about his plans.

Mr Varadkar said it would not affect this year’s Budget so the conversation would have been premature.

He was speaking at a pre-Budget forum on Social Welfare.

Under his plan, social welfare payments would be linked to the cost of living or to average earnings under the proposals which would be likely to see annual increases in payments as the rate of inflation rises.

“Just because something isn’t in the Programme for Government doesn’t mean we can’t do it. It is not that it is rejected in the talks,” he said in Donegal this week.

The extent of increases will however depend on which barometer social welfare payments are linked to.

Mr Varadkar said: “I am open to having the conversation on whether it is linked to average earnings, inflation, and what type of inflation. But my proposal is that it should be indexed, it shouldn’t be at the whim and gift of politicians on budget day.”

Social Justice Ireland welcomed the plans but said the current rate of €188 would have to be increased by €6.50 a week just to regain the value it has lost to inflation since 2011.

Social Justice director Dr Sean Healy estimated that this would cost an additional €274m annually.

Mr Varadkar said: “I don’t think we could achieve an increase of that scale, I don’t think that’s doable.”

Welcoming the plans, Fianna Fáil’s Social Protection spokesman Willie O’Dea said: “Fianna Fáil has long called for new mechanisms to be put in place to safeguard people’s living standards into the future. The Government now appears to be examining such proposals.”

Mr Varadkar added that he does not want to increase child benefit payments as a €5 per week rise across the board would cost €60m a year.

“The same amount of money invested in reducing the cost of school, childcare or healthcare, would in my view go a lot further,” Mr Varadkar said.