Dáil Éireann Debate, Thursday - 7 October 2021
23. Deputy Róisín Shortall asked the Minister for Social Protection her views on the minimum essential standard of living data compiled by an organisation (details supplied); her views on the validity of the research behind the data; and if she will consider using the data as evidence in determining the level of core social welfare payments. [45864/21]
View answerMy Department funds work undertaken by the Vincentian Partnership for Social Justice to develop and calculate the Minimum Essential Standard of Living (MESL). My officials work closely with the MESL team and I find this work very useful in informing policy. The outputs from this research complement data produced from other analyses such as the Survey on Income and Living Conditions produced by the Central Statistics Office.
The MESL research provides an estimate of the income requirements of different family types in both urban and rural locations. It provides a comparison of welfare payments against these calculated requirements to identify what the Vincentian Partnership terms adequacy gaps. In 2020, the study concluded that pensioner couple households have no adequacy gaps but other households demonstrate gaps of various magnitudes.
This research also highlights issues that may also be addressed by improvements in services. In this regard, improved services, such as the extension of GP visit cards for children and the affordable childcare scheme can result in significant reductions in the minimum income standards needed by households.
In recent years, the Department has used the study as a key input into consideration of Budget options. Budget 2019 introduced a new, higher rate of increase for qualified children aged 12 and over, across all social welfare schemes. Budgets 2020 and 2021 again provided for a higher increase for older children. Changes have also been made to enhance the Working Family Payment and One Parent Family payments. In addition, the Living Alone Allowance increased by a total of €10 per week over Budgets 2020 and 2021 in response to the research highlighting adequacy gaps, particularly for pensioners living alone.
Measures taken by this and previous governments ensure that social welfare payment rates in Ireland are among the highest in Europe. Social transfers contribute very significantly to reducing poverty rates in Ireland. According to the Central Statistics Office, in the absence of social transfers and pension income, the at-risk-of-poverty rate would be 41.4%. After social transfers, the rate is 12.8%. This is a poverty reduction effect of 68.5% for all social transfers and pensions, one of the highest in Europe.
I can assure the Deputy that any measures being considered for Budget 2022 will be guided by research, including the minimum essential standard of living research, to target resources at those who are identified as being in most need.
