Dáil Éireann Debate, Thursday - 6 July 2023
277. Deputy Bernard J. Durkan asked the Minister for Social Protection the extent to which it continues to be possible to address particularly sensitive issues in respect of family income and the cost-of-living impact; if she is satisfied regarding the adequacy of her Department's resources to address such circumstances; and if she will make a statement on the matter. [33374/23]
View answerI fully recognise the challenges the increased the cost of living has brought to many people and families, particularly one parent families who are a group at greater risk of poverty. That is why, last September, I announced the largest social protection Budget package in the history of the State - comprising measures worth almost €2.2 billion.
Most weekly social welfare payments include provision for an additional payment – an Increase for a Qualified Child (IQC) – in respect of each qualified child up to the age of 18, which is extended to encompass older children to age 22 under certain circumstances. This measure provides targeted support to low-income families.
In Budget 2023, the IQC rates increased by €2 – to €42 per child for under 12s and to €50 per week for those aged 12 and over. Over the last three Budgets, these rates have increased by €6 and €10 per week respectively.
These increases were provided in the context of an overall package which included a €12 personal rate increase for weekly schemes, in addition to once-off measures to help ease the cost-of-living pressures for low-income households. For example, a lone parent with two young children will have seen a €16 increase in their weekly rate from January 2023. The improvements to the Working Family Payment thresholds also targets low-income families with children, resulting in a weekly increase of up to €24.
Recipients of long-term social welfare payments, including One-Parent Family Payment, received a double weekly payment in October as well as the Christmas Bonus double payment in December. Lone parents in receipt of the Fuel Allowance will have also received three fuel lump sums last year, and those receiving the Working Family Payment would have received a €500 lump sum last November and a higher rate of the payment from January as the income thresholds on that scheme were increased. All families with children received a double payment of Child Benefit last November.
After the Budget the Government has continued to monitor the situation and that is why we announced additional support for people in February which provide a further €410 million in supports to households and families in need.
This included a €200 lump sum payment in April for people on long term social protection payments, a €100 Child Benefit lump sum payment for each child paid just last month and an additional payment of €100 to be paid for each child for whom Back to School Clothing and Footwear Allowance is paid again this year, as well as a further extension of the Hot School Meals programme.
Analysis by the ESRI shows that, combined with the increase in core social welfare payment rates, lump sums and energy credits has been effective in protecting most households from rising prices and, in fact, that lower income households are better off than if they had just received an inflation indexed increase in basic rates.
