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Social Welfare Code

Dáil Éireann Debate, Tuesday - 13 February 2018

Tuesday, 13 February 2018

Questions (627, 628, 629)

John Brady

Question:

627. Deputy John Brady asked the Minister for Employment Affairs and Social Protection to set out in tabular form the estimated annual cost of index-linking each payment (details supplied) to inflation over the next five years. [6922/18]

View answer

John Brady

Question:

628. Deputy John Brady asked the Minister for Employment Affairs and Social Protection to set out the estimated annual cost of index-linking all weekly social welfare payments to inflation over the next five years. [6923/18]

View answer

John Brady

Question:

629. Deputy John Brady asked the Minister for Employment Affairs and Social Protection to set out the estimated annual cost of index-linking all social welfare payments to inflation over the next five years. [6924/18]

View answer

Written answers

I propose to take Questions Nos. 627 to 629, inclusive, together.

The Harmonised Index of Consumer Prices used in the following table is sourced from the Department of Finance’s 2018 Budget Day book. This provides forecasts for inflation for the four years 2018 to 2021 inclusive. However, there is no projection available for 2022 or 2023 and, thus, no costings are provided for the years to 2021.

The costings are based on 2018 recipient numbers, and include the cost of proportionate increases in reduced rates and the qualified adult rates of payment, where applicable. It should be noted that the costings do not take into account changing trends (increases or decreases) in recipient numbers from 2019 onwards.

Additional Cost of Rate Increases linked to the Harmonised Index of Consumer Prices, 2019 to 2021

-

2019 – 1.4%

€m

2020 – 1.8%

€m

2021 – 1.9%

€m

Jobseeker’s Benefit

4.8

6.1

6.6

Jobseeker’s Allowance

27.1

34.8

37.6

Supplementary Welfare Allowance

2.6

3.4

3.6

Illness Benefit

8.1

10.4

11.2

Disability Allowance

21.05

27.0

29.3

One Parent Family Payment

5.7

7.3

7.9

Carer’s Benefit

0.45

0.6

0.6

Carer’s Allowance

9.8

12.8

13.7

State Pension (Contributory)

69.25

103.1

128.5

State Pension (Non-Contributory)

16.1

21.1

22.6

All weekly Social Welfare payments

225.4

306.7

350.4

All Social Welfare payments

262.3

354.8

401.4

The costs for all weekly social welfare payments includes increasing the qualified child increase, the Living Alone Increase and the over 80s allowance in line with projected inflation. It also includes increasing the rates for the work programmes including Community Employment, Tus and the Rural Social Scheme but it does not include increasing the top-ups paid on these schemes. Furthermore, it includes increasing expenditure on the Working Family Payment (formerly Family Income Supplement) in line with projected inflation.

In addition to the weekly social welfare payments, the costs for all social welfare payments include the monthly Child Benefit and Domiciliary Care Allowance payments, and the annual Carer’s Support Grant. Provision is also made for an increase in expenditure in line with inflation for the Fuel Allowance, the Household Benefits scheme and the Widowed Parent Grant.

All of these costings are based on 2018 estimated recipient numbers.

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