Dáil Éireann Debate, Thursday - 7 December 2023
134. Deputy Joan Collins asked the Minister for Social Protection to confirm that core social welfare rates will be raised to at least the rate of inflation since 2013 when once-off cost-of-living payments end, so that core social welfare rates have not been cut in real terms since 2013 (details supplied). [53993/23]
View answerA simple comparison between core welfare rates with inflation does not take into account that, over recent years, changes in these core rates have been underpinned by increases in targeted payments which further support those most vulnerable to poverty.
Since March last year, as the Cost of Living increased, this Government has provided unprecedented supports to protect people and families.
In October, I secured a package of €2.3 billion for Social Protection measures as part of Budget 2024. This represents, for the second year in a row, the largest Budget package for the Department of Social Protection in the history of the State and will help to support our pensioners, carers, people with disabilities, lone parents and families during this difficult period.
The Budget Package included:
• Weekly Personal and Qualified Adult Rates increases by €12
• Increase for a Qualified Child increased by €4 per week
• Increase of the Working Family Payment income thresholds for all families by €54 per week
• Extension of Hot School Meals to non-DEIS primary Schools who applied under an Expression of Interest
• Extension of Parent's Benefit from 7 weeks to 9 weeks
• Extension of Child Benefit to 18 year olds in full time education
• Increased rate of Domiciliary Care Allowance by €10 to €340 per month
• A reduction to the minimum weekly hours threshold for employers to avail of the Wage Subsidy Scheme from 21 to 15 hours
• An increase to the earnings disregard for Carer's Allowance to €450 for a single person and €900 for a couple
• Additional funds to include provision for Free Travel for people medically certified unfit to drive
As part of this package, a wide range of lump-sum payments are have been paid. Including:
• €400 to Working Family Payment recipients
• €400 to recipients of Disability Allowance, Blind Pension and Invalidity Pension
• €400 to recipients of the Carer’s Support Grant
• €200 to recipients of the Living Alone Allowance
• €300 to all Fuel Allowance recipients in 2023
• €100 for each child in respect of whom an Increase for a Qualified Child is in payment
This week will see two further lump sum payments being made:
• A double payment of Child Benefit
• A 100% Christmas Bonus
And in January, a 100% double payment, at higher weekly rates, will be made to recipients of long term social protection payments.
The ESRI analysis shows that Budget 2024 rate increases, combined with the cost of living measures, are effective in protecting most households from rising prices through the winter. The analysis also shows that lower income households are better off than if they had just received an inflation indexed increase in basic rates.
The ERSI analysis states that the package of tax cuts, welfare increases, cost of living payments and indirect tax changes introduced under Budget 2024 is progressive with higher gains for low-income households compared to high income households.
The combination of once-off and ongoing measures will support vulnerable groups including pensioners, carers, people with disabilities, lone parents and families. For example, a lone parent with two young children, will be €2,448 better off due to Budget 2024. A pensioner couple will see their income increase by more than €2,514. A person with a disability living alone will be €2,020 better off after Budget 2024.
The Budget is independently assessed as being progressive, targeted at lower income households and will protect these households against rising costs.
