Dáil Éireann Debate, Tuesday - 24 October 2023
93. Deputy Sean Sherlock asked the Minister for Social Protection if she agrees with the principle of restoring the State pension to its 2020 spending power; and if she will commit to doing this within the lifetime of this Government. [46388/23]
View answerI am very aware of the impact that the increased cost of living has had on households over the last two years. This is why Government has provided an unprecedented response that aims to ease the financial pressure on households throughout the State.
Over the last three Budgets, the personal rate of the State Pension (Contributory) has increased by €29 per week and €55.10 for a couple with a qualified adult allowance in payment. While these increases in the weekly rate did not on their own match the sharp increase in prices over the period, the combination of these weekly rate increases with significant cost of living payments more than bridges this gap.
Similar to last year, the 2.3 billion euro Budget 2024 package provides a mixture of exceptional cost of living payments delivered over the coming weeks, along with a significant rate increase in January. This approach will ease the pressure that many households, particularly pensioners, face over the winter months, and provides for the weekly rate increase from January.
Post-Budget analysis from the ESRI shows that the package of measures introduced under Budget 2024 will insulate most households from rising prices next year.
The double payment to be made in January will be paid at the higher 2024 rate, having a value for a single pensioner of €277.30 – equivalent to over €5 per week over the year, as does the double payment to be made at Christmas – so over €10 per week in additional annualised value from these two payments alone.
Pensioners living alone, and in receipt of Fuel Allowance will also receive combined bonus payments of €500 – equivalent to a value of about a further €10 per week when spread across the year.
Many pensioners have also benefitted from the significant changes in eligibility for Fuel Allowance, and all pensioners will also receive the additional energy credits in the coming months.
