Dáil Éireann Debate, Thursday - 19 June 2025
124. Deputy Liam Quaide asked the Minister for Social Protection if his attention has been drawn to a report (details supplied); his plans to address the gap between the better off and those on the lowest welfare and work incomes; and if he will make a statement on the matter. [33109/25]
View answerI am aware of the Social Justice Ireland Report analysing how the gap between individuals on Jobseeker's Benefit and individuals earning €40,000 per year and €100,000 per year is affected by Budget measures and cost of living initiatives each year.As Minister for Social Protection, I am acutely aware, as we all are, of the pressures faced by those on the lowest welfare and work incomes given increases in the cost of living over the last number of years.As part of Budget 2025, a €2.6 billion Social Protection package was secured. This was, for the third year in a row, the largest in the history of the State.This package provided a mixture of lump sum cost of living payments, along with across the board €12 weekly rate increase in primary payments.As well as one-off measures and rate increases, Budget 2025 included the introduction of a Newborn Baby Grant; an increase to the income disregard for Carer’s Allowance, which becomes a qualifying payment for Fuel Allowance; increases to the Working Family Payment income thresholds; the extension of the Hot School Meals scheme to all remaining Primary Schools; and the commencement of the Jobseeker’s Pay-Related Benefit Scheme.Each year, the ESRI produces a post-Budget analysis of the main tax and welfare changes in the Budget. This analysis shows that the package of measures introduced under Budget 2025 will result in average gains in income for most households next year. It also shows that incomes have remained largely stable since 2020 despite a number of crises including the COVID-19 pandemic and the rise in the cost of living. I am, therefore, satisfied that the most recent Budget protected the most vulnerable in our society, particularly children in low-income families.The Irish social protection system continues to perform well in terms of its redistributive effect and reduction in the at-risk-of-poverty rate.The latest 2024 CSO Survey on Income and Living Conditions (SILC) data show that social transfers (excluding pensions) reduced the at-risk-of-poverty rate from 34.1% before social transfers to 11.7% after social transfers.This equated to a poverty reduction effect of 62.7% in 2024.In July, I will meet with stakeholders at our annual pre-Budget forum with a view to continuing this progress. I will listen to views on their priorities in the forthcoming budget. This will be a key input to my thinking on Budget formulation and the measures that I will bring forward for consideration of Government.I am fully committed to making the case for a fair budget that protects the people most in need in our society - particularly families on low incomes and those people, including pensioners and carers, who are dependent on social welfare payments.
