I note the recent publication of the Report of the Commission on Taxation and Welfare, "Foundations for the Future," which independently considers how best the taxation and welfare systems can support economic activity and promote increased employment and prosperity in Ireland.
I also note that there are a broad range of recommendations for Government to consider, including the recommendation the Deputy refers to on a benchmarking exercise for working age schemes.
As part of the Roadmap for Social Inclusion 2020-2025, Government has committed to finalising an approach for the benchmarking and indexation of pension payments.
A smoothed earnings method to calculating a benchmarked/indexed rate of State Pension payments was also recommended by the Commission on Pensions.
In September, I announced a series of landmark reforms to the State Pension system. The measures, which were approved by Government, are in response to the recommendations from the Commission on Pensions. The set of measures represent the biggest ever structural reform of the Irish State Pension system.
As part of this, a smoothed earnings method to calculating a benchmarked/indexed rate of State Pension payments will be introduced as an input to the annual budget process and will be submitted to Government in September each year (from 2023).
My Department has also committed to considering and preparing a report for Government on the potential application of the benchmarking approach to other welfare payment areas. Now that Government has approved an approach in relation to pension payments, and the report of the Commission on Taxation and Welfare has been published, my Department will examine potential benchmarking approaches to other social welfare payments.
I trust this clarifies the matter for the Deputy.
