Dáil Éireann Debate, Thursday - 7 October 2021
12. Deputy Willie O'Dea asked the Minister for Social Protection the increase in the State pension and other social welfare rates that will be required in Budget 2022 to match inflation since the last increase in rates. [44885/21]
View answerThe Deputy will be aware that I will be considering a range of options for Budget 2022 over the coming week, taking account of available resources. The Central Statistics Office, in its most recent statistical release on prices, shows that the average level of prices over the 12 months to August 2021, as measured by the Harmonised Index of Consumer Prices, was broadly the same as for the 12 months ending August 2020. Having said that, I am also mindful that annual, or 12 monthly, data, can lag the lived experience of people and that monthly data indicates that price levels have increased recently. This is obviously a factor to be taken into account in finalising the budget. It is, I believe, important to emphasise that the Government takes a range of data, not just price data, into account in formulating its budget. For example, the last two Budgets have, in fact, seen a series of evidence based increases in some social welfare payments targeted to improve the situation of the people who are most at risk of poverty and to ensure the most vulnerable were protected.These included increases in the Living Alone Allowance of €10 per week, the Fuel Allowance being increased by €5.50 per week, and increases to the weekly qualified child rates of €4 for children aged under 12, and €8 for those aged 12 and over.In addition, the earnings disregards for the One Parent Family Payment, Jobseeker Transition Payment and Disability Allowance have been increased, allowing lone parents and people with disabilities to earn more from employment without their payment being affected.As a result of these targeted measures, some of the most vulnerable social welfare recipients have already seen increases significantly above the rate of inflation over this period. For example, during the fuel season, a pensioner or person with a disability living alone is up to €15.50 per week better off. In the case of a lone parent or a person with a disability, this could increase further if they are working, as they can benefit from the increased earnings disregards introduced and the improvements made to the Working Family Payment.In considering options for the forthcoming Social Welfare Budget package, I will once again be guided by evidence-based research produced by organisations such as the CSO, the ERSI and the Vincentian Partnership for Social Justice. Taking an evidence-based approach ensures that available resources are used to deliver maximum impact in terms of reducing poverty and disadvantage.
