Dáil Éireann Debate, Wednesday - 18 January 2023
843. Deputy Seán Canney asked the Minister for Social Protection if she will index link all social protection payments to meet the cost of living going forward; and if she will make a statement on the matter. [63283/22]
View answerAs part of the Roadmap for Social Inclusion 2020-2025, Government 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 are in response to the recommendations from the Commission on Pensions and 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 this year.
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, my Department will examine potential benchmarking approaches to other social welfare payments during the course of this year.
I trust this clarifies the matter for the Deputy.
