The Programme for Government commits to increasing the State pension and the living alone allowance above the rate of inflation. It also supports increases in payments to people with disabilities and carers.
Budget 2017 provided for a €5 increase in the maximum rates of payment across all weekly schemes, with proportionate increases for qualified adults and those on reduced rates of payment. For pensioners, this was the equivalent of a 2.1% increase. For most working age recipients, this was the equivalent of a 2.65% increase.
The Department of Finance's Summer Economic Statement reports a Harmonised Index of Consumer Prices (HICP) inflation rate of 0.6% for 2017 and forecasts HICP inflation of 1.2% for 2018, resulting in a cumulative inflation rate of 1.8%. Accordingly, the Programme for Government commitment has been met in respect of increases to the weekly rates of payment.
The appropriate levels of weekly rates of payment for 2018 will be considered by Government in the context of the resources available in the forthcoming Budget.