Dáil Éireann Debate, Thursday - 7 October 2021
275. Deputy Bernard J. Durkan asked the Minister for Social Protection if she can foresee an increase in the various allowances operated by her Department; and if she will make a statement on the matter. [48988/21]
View answerThe Deputy will be aware that I will be considering a range of options for Budget 2022 over the coming days, taking account of available resources.
It is important to emphasise that the Government takes a range of data and research into account in formulating its budget. The last two Budgets have 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.
For example, in recognition of research which indicates that those who are aged 65 years and over are more likely to be at risk of poverty, deprivation and consistent poverty if they live alone, the Living Alone Allowance was increased by €10 per week over the course of Budgets 2020 and 2021. This brought the rate from €9 to €19 per week.
To take account of increased costs arising as a result of increases to the carbon tax, the Fuel Allowance was increased by €2 per week in Budget 2020 and a further €3.50 per week in Budget 2021, raising the weekly rate of payment from €22.50 in 2019 to €28 currently.
In addition, Minimum Essential Standard of Living (MESL) research has consistently shown that households with children, and particularly older children, face higher costs than those without. Since 2019, the IQC rate in respect of children aged under 12 has been increased by €4 per week, while the rate for children aged 12 and over was increased by €8 per week, bringing the current rates to €38 and €45 respectively.
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 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.
Any increases to the core rates of social welfare payments will be considered in an overall budgetary and policy context.
