I propose to take Questions Nos. 220, 221, 224 and 229 together.
The cost of increasing the qualified child increase by €3.20, from €29.80 to €33 per week, is estimated at €62.4 million in 2018 and a full year. This includes the costs associated with the Back to Work Family Dividend (€2.3 million), the weekly rate of which is based on the rate of the qualified child increase.
The full year cost of increasing the qualified child increase by €5.20, from €29.80 to €35 per week, is estimated at €101.4 million in 2018. This includes the costs associated with the Back to Work Family Dividend (€3.7 million).
The cost of increasing the Living Alone Allowance, from €9 per week, by €5 per week, by €6 per week and by €11 per week is estimated at €52.2 million, €62.6 million and €114.8 million respectively in 2018 and a full year.
The full year cost of increasing the age-related reduced rates of Jobseeker’s Allowance, from €102.70 per week (for 18 to 24 year olds) and €147.80 per week (for 25 year olds) to €193 per week is €108.9 million in 2018 and a full year. The full year cost of increasing the age-related reduced rate of Jobseeker’s Allowance from €102.70 per week (for 18 to 24 year olds) to €147.80 per week is €50.1 million in 2018 and a full year. These costs include bringing the qualified adult rate for those on the €102.70 rate up to the maximum of €128.20 per week, and increasing the equivalent age-related reduced rates for Supplementary Welfare Allowance.
The Department of Finance’s Summer Economic Statement provides a 2018 forecast for HICP of 1.2%. Increasing all weekly payments (as listed below) by 1.2% would cost €177 million in 2018 and a full year. The Central Bank’s most recent Quarterly Bulletin (Q3, 2017) forecasts CPI in 2018 at 1.3%. Increasing all weekly payments by 1.3% would cost €193 million in 2018 and a full year.
A €5 increase in the weekly rates of payment across all schemes would cost €350 million in 2018 and a full year. The breakdown of cost by scheme is detailed in the following table. The costs include proportional increases for qualified adults and for those on reduced rates of payment.
Weekly payments
|
Cost of €5 increase
(€m)
|
State Pension (Contributory)
|
103.2
|
Widow/er's or Surviving Civil Partner's (Con) Pension
|
28.7
|
Deserted Wife's Benefit
|
2.2
|
Invalidity Pension
|
17.1
|
Guardian's Payment (Contributory)
|
0.3
|
Death Benefit Pension
|
0.2
|
Disablement Pension
|
1.2
|
Illness Benefit
|
14.5
|
Injury Benefit
|
0.4
|
Incapacity Supplement
|
0.3
|
Jobseeker's Benefit
|
8.4
|
Carer's Benefit
|
0.7
|
Health and Safety Benefit
|
0.0
|
Maternity & Adoptive Benefit
|
5.2
|
Paternity Benefit
|
0.2
|
State Pension (Non Con)
|
25.2
|
Blind Person's Pension
|
0.3
|
Widow/ers or Surviving Civil Partner's (Non-Con) Pension
|
0.4
|
Deserted Wife's Allowance
|
0.0
|
One-Parent Family Payment
|
10.1
|
Carer's Allowance
|
15.9
|
Guardian's Payment (Non-Contributory)
|
0.1
|
Jobseeker's Allowance
|
55.5
|
Pre-Retirement Allowance
|
0.0
|
Disability Allowance
|
37.7
|
Farm Assist
|
2.4
|
Employment Support Schemes (BTWEA & BTEA)
|
5.3
|
Employment/Internship Schemes (CE, Tús, RSS etc.)
|
10.4
|
Supplementary Welfare Allowance
|
4.7
|
TOTAL
|
350.0
|
It should be noted that all of these costings are subject to change over the coming weeks in the context of emerging trends and associated revision of the estimated numbers of recipients for 2018.