Deputy Kerrane is sharing time with colleagues.
Food Price Rises: Motion [Private Members]
I move:
That Dáil Éireann:
recognises that:
— food prices are continuing to rise, with groceries expected to cost €780 more over the next 12 months;
— new research has found that 62 per cent of people feel they will have to cut back on food spending over the coming year; and
— Sinn Féin have proposed a suite of solutions that would provide badly needed relief to households, to include:
— putting a month's rent back into renters' pockets;
— reducing childcare fees by two-thirds;
— increasing the minimum wage and social welfare rates;
— establishing a discretionary fund to assist households with utility debt;
— relaxing the rules around Exceptional Needs Payments; and
— re-introducing walk-in access to Community Welfare Officers;
notes, with increasing concern, that the rising price of food and groceries is forcing many families to go without and is evidenced by the steep increase in the number and range of families now seeking assistance from food banks;
acknowledges that:
— some of the drivers of rising prices are outside of this Government's control, but the actions necessary to protect people from its worst effects and to ensure the outworkings of international factors are experienced fairly and without avoidable hardship are within this Government's gift; and
— the Government cannot protect everybody from every price increase, but they can and should do more; and
calls on the Government to introduce a cost of living cash payment of €200 for every adult with an income less than €30,000 and €100 for every adult with an income between €30,000 and €60,000.
"Almost two-thirds of people to cut back on food spending over the cost of living crisis". "Working families skipping meals as demand increases at food banks". "Food shopping drops as grocery inflation reaches nine-year peak". "62% cutting food spending as prices rise". "'People putting rent ahead of grocery spend' as 350,000 impacted by food poverty". "Almost one in five people living in poverty amid cost of living crisis". These are just some of the headlines that we have seen over just the past four days. This is Ireland of 2022. We are one of the richest countries on the planet, yet families, workers and others are cutting back on eating. We have to sit back for a second and think about the implications of that. Households, families and workers who are paying their taxes are getting up in the morning and choosing to go without. They have no choice but to cut down daily and weekly on eating. That we have reached such a point in this day and age is a great shame.
Research published today by Kantar shows that households are cutting back on the amount of food they are buying. Grocery inflation is at its highest level in almost nine years. Prices in supermarkets have risen by 5.5% in the past 12 months, the largest increase since August 2013. Coinciding with this is a fall in take-home grocery sales of 6.5% in the past 12 weeks. This shows that people are already cutting back, and the situation is due to get worse as inflation continues. These figures reflect data from the Central Statistics Office, CSO, which show that staples like milk, bread and cheese have increased in price in the past year.
An organiser of a food bank in Dublin today stated that the food bank was seeing record demand, having doubled in recent weeks alone, and that full-time workers were skipping meals and visiting food banks. Research from Permanent TSB shows that more than 60% of people feel that they will have to cut back spending on food in the coming year due to the cost of living crisis. CSO data show that groceries will cost an extra €708 over the next year. This is on top of increases in the cost of diesel, petrol, electricity, oil, gas, childcare and rent. The list goes on.
This State has a real poverty problem, and it is one that is growing. Recent survey on income and living conditions, SILC, data published by the CSO this month showed an increase across the board, with levels of consistent poverty, at risk of poverty and deprivation having increased for those aged over 65 years and for those with disabilities. These are alarming increases. Deprivation levels have increased to 44% among long-parent families, who already experience sustained consistent poverty rates. Yesterday, a report from Social Justice Ireland showed that almost 1 million people were living in poverty. It is incredible and shameful to think that we are in this situation.
The Minister of State will talk about the budget of eight months ago and so on, but no matter what the Government says, not enough has been done. Where we in Sinn Féin have been able to, we have welcomed what has been done so far, but this motion seeks a cost of living cash payment. We need to put money into people’s pockets as quickly as possible. I hope that the Government will be able to support the motion.
We know that the cost of living is rising. We know the severe pressure that people are under to heat their homes as well as to put fuel in their cars in order to get to work and do the bare minimum that most people need to do. However, we are facing a new part of the cost of living crisis, that being, food poverty. People are finding it increasingly difficult to put food on the table. More than 60% of people say that they are now making choices in terms of food. This is a crisis point. No spin can be put on this. It is a crisis when people cannot pay for food to put on their tables or when they have to make a choice about whether they will put food on their tables, fill their cars, heat their homes or meet life’s basic necessities.
One would imagine that the Government would say that it needed to take action quickly and that it would do everything it could to help the most vulnerable in society. Every Deputy has been approached by constituents who are suffering greatly because of the major increase in the cost of living. We in Sinn Féin ran a survey on the cost of living crisis. Of those who had come to us saying that they were struggling with food, one pensioner replied that it was not possible to live on what was left after paying the electricity bill by card at An Post. The pensioner could not afford groceries, was eating the bare minimum and said that life was very hard. This is the reality for people. A woman in her 40s said that there was a major difference – approximately €30 of an increase – in her weekly shopping compared with a year ago. People do not have €30 at their disposal. This is something that makes a difference in the kind of food, and how much of it, they can put on their tables.
In our motion, Sinn Féin is making constructive proposals to help people who are struggling and those who are the most vulnerable. We have consistently made constructive and credible proposals on how to tackle the cost of living crisis. We in this Chamber must be united on the crisis because that is what people need us to do. A cost of living cash payment of €200 for every adult with an income of less than €30,000 must be introduced, as must a payment of €100 for every adult with an income of between €30,000 and €60,000. We have also made a range of other proposals.
This issue cannot be allowed to fall on deaf ears anymore. Immediate action is necessary to tackle the cost of living crisis so that people can eat when they need to.
While I was sitting down today writing this speech, I thought about the difficulties that many people were experiencing at the moment because of the cost of living crisis and about how they were suffering.
They are finding it hard and life should not be hard. If you are going to work every day and doing everything right you should be able to put food on the table, heat your home and look after your family, especially your children. The other day I listened to the Tánaiste talking about full employment but where is the full story? What about all of those people who are working and who are in poverty? How can this Government accept that people are going to work every day and that they cannot pay their rent, put diesel in the car or pay their electricity bills? People are struggling but if you listen to the Tánaiste and the Taoiseach, they say how great things are. For a lot of people things are not great.
We are putting forward a constructive proposal. We understand that the Government cannot do everything; we know that but providing €200 for people today makes a difference. Providing €100 for people who are earning over €30,000 and under €60,000 makes a difference and pays a bill. The Minister of State talks about the €2 billion the Government provided but that was too little and was not targeted at the people who needed it. There are people struggling. I was talking to people and they are angry. They are looking for leadership and for their Government to listen to them and to act. People are intelligent; they know the Government does not have a magic wand but they also know that the Government should be doing more and it is not doing so. In Sinn Féin we are saying that we are elected by the people and for the people and that we need to deliver for the people. We ask that the Government would finally recognise the solutions we are putting forward, including the ones Deputy Kerrane has spoken about today. We cannot sort out everything but we can make a difference if we choose to do so. I ask the Minister of State and the Government to listen to people because they need help and they are hurting and it should not be like that.
Sinn Féin is bringing forward this motion on the rising food prices as we recognise the plight every single worker and low-income family is going through at this moment in time. Food prices are continuing to rise, with groceries expected to cost almost €800 more over the next 12 months. New research has found that 62% of people feel they will have to cut back on food spending over the coming year, with increasing concern that the rising price of food and groceries is forcing many families to go without, as evidenced by the steep increase in the number and range of families now seeking assistance from charities or food banks. The cost of living has risen so much that people are choosing whether to skip a meal or two just so they can pay utility bills or the rent. Spiralling housing costs are pushing increasing numbers of people into poverty, with lone parents, people with disabilities and renters depending on housing supports the worst affected. Data published by the CSO this month state that the overall poverty rate in the State, when housing costs are included, is 19%. Some 952,185 people - almost 1 million - or one in five of the total population are in poverty.
I will look at my constituency of Meath West as a prime example of what is wrong. Last week an Economic and Social Research Institute, ESRI, report showed that a lone parent with two children, earning €25,000 per year and living in County Meath will pay a €450 top-off on HAP to his or her landlord, compared with the same families living in neighbouring counties, which are paying €252, or in other cases, €226. That is an additional €2,500 per year for a lone parent with two kids in County Meath, or an additional 10% of his or her total income. Surely this is not right or fair? The HAP system is out of date and has not been updated since 2016. In Sinn Féin we want to help families that are stressed with bills. We would put a month's rent back into renters' pockets, reduce childcare fees by two thirds and increase the minimum wage and social welfare rates. We would establish a discretionary fund to help households with utility bills. I call on the Government to introduce these measures as a matter of urgency. This would not even go close to paying the bills people have but it would help ease some of the stress they are going through.
The cost of living crisis is getting worse by the day. People are being financially crippled by the rising costs of groceries, petrol, childcare, rent and heating for their homes. Food prices have increased by nearly 4% in the first three months of this year. We understand that the crisis is global but we need to do what we can to help the people now. Food banks are seeing more and more people turning up and looking for help every week. New research by Permanent TSB found that 62% of people feel they have to cut back on food spending because of the rising costs. The Government claims that it feels the pain of the people but it is clearly out of touch and it is failing to grasp the real challenges that families are facing. People are struggling week to week and having to make decisions about whether to heat their homes or put food on their tables.
In Sinn Féin we have brought forward a package of measures which would help people who are at their wit's end and the Government could act on these measures with the stroke of a pen. The Government could introduce a cost of living cash payment today, which would see those earning less than €30,000 receive €200, while those earning between €30,000 and €60,000 would get €100. This is all part of a package of proposals which would seek to tackle the cost of living. Proposals like putting a month's rent back in renters' pockets and relaxing the rules around exceptional needs payments, as well as reintroducing access to the community welfare officers, CWOs, could also be implemented. The Government needs to get a handle on this. Families are struggling and they cannot wait for the Government’s budget in October. Help is needed in the here and now. Ministers must do all in their power to protect people from the sharp edge of these increases and to keep food on their tables.
I welcome the opportunity to speak on this motion. The cost of living crisis is causing serious financial hardship for ordinary families and workers. Some of this is beyond the control of the Government but some of it is not and this evening, Sinn Féin is proposing one solution that would provide some relief and a much-needed break. In response to the most recent surge in the costs in the food sector, we are proposing that those earning less than €30,000 would receive a once-off payment of €200, while those earning over €30,000 and under €60,000 would get €100. No one should face that choice between putting food on the table or paying essential bills. Our proposal is an attempt to ease the pressure on those who are most financially exposed. Sinn Féin is also calling for other cost-of-living solutions to be implemented. These include the introduction of a living wage, a rent freeze and a tax rebate of 8.5% for renters, equal to one month's rent. This Government has done nothing for renters, the most hard-pressed section of society. We want a discretionary fund to be established to help with utility bills and to provide a cut in childcare costs.
We also need to go further and to start addressing the causes of inflation and what can be done as a country to protect people from external supply chain issues. A lot of our food is imported and is transported long distances, which results in more energy being used and costs being increased. Supply issues and global conflicts are driving up prices. The uncertainty and breakdown in production and supply lines are making the supply of some products problematic. Part of the solution to inflation and supply issues is more localised production. We need, therefore, to see greater investment in and focus on organic farming, which only makes up a small percentage, 1.8%, of all agricultural production, despite the fact that we have a target of 7.5% for it. We also need to re-examine the production of sugar and flour in this country. Some 80% of our flour and 100% of our sugar are imported, despite the fact, as the Minister of State knows, that we had a State industry producing those products less than two decades ago. The Government needs to establish a working group to assess the viability of re-establishing those key industries and establishing jobs in them.
That should be the long-term plan. The short-term plan must be to implement these Sinn Féin proposals.
The cost of living is out of control and families are under real financial pressure as a result. Food costs are soaring while people's incomes stay the same. Every day, people who are struggling come into my constituency office on Neilstown Road. Their struggle is not just with the cost of living. People are contacting my office who are struggling because of the housing crisis, whether that be the lack of housing, sky-high rents or because they are among the thousands languishing on never-ending public housing lists. In addition, 10,000 people are now homeless, thousands of whom are children. We are back to 2019 levels of homelessness under this Government.
There are countless parents who are desperately trying to access care for their children, who have been left on waiting lists for speech and language therapy, occupational therapy and psychology services. Representatives of the Quarryvale food bank, which is located in my area, told the children's committee earlier in the year that people are accessing that service because they have to pay privately for the care for their children that should be provided under the public health service. This is an absolute disgrace. Ordinary workers and families are exhausted even before they are hit by the cost-of-living crisis. No one should ever have to face the choice between putting food on the table or paying the rent. People are under real pressure. The Government must listen to ordinary workers and families and it must act to address the issues they face.
I commend my colleague, Deputy Kerrane, on bringing forward this motion. It is a simple one, which proposes to put money back in the pockets of the people who are most affected by the cost-of-living crisis. It would give workers and families a break and the ability to breathe, put food on the table and recharge their batteries for fighting all the other difficulties the Government has put on them. Sinn Féin is offering not one solution but a raft of solutions, including putting a month's rent back in people's pockets and cutting childcare costs by two thirds. These measures would make a real difference to people in the here and now. We need to listen to what ordinary workers and families are saying and we must put the measures in place to help them. It is up to the Government to act on this.
I thank the Deputies for putting forward this motion. I understand their motivation in doing so and welcome the opportunity for discussion on the issue of rising food prices. We are concerned with protecting our people from the severe financial and economic consequences of the recent worldwide spike in inflationary pressure. We are all aware that people are finding it harder to make ends meet. All of us in this House, regardless of party affiliation, want to respond as comprehensively as we can. The Government will not oppose the motion, but I wish to make a number of points on its content and on the Government's record in addressing the cost-of-living issues to date.
With the annual rate of increase in the consumer price index, CPI, standing at 8.2% in May, it is clear that the long period of stable prices has, at least temporarily, come to an end. This is an issue that is not limited to Ireland. Indeed, it is a trend that is being seen across most advanced economies in the euro area. Inflation has reached a record 8.1% in those economies and it is of a similar magnitude in the United States. The emergence of inflationary pressures over the course of the past year is largely explained by international factors outside the control of the Government and governments elsewhere. These factors include post-Covid supply chain bottlenecks, increased savings, which people wish to spend now that Covid restrictions are eased, and an increase in wholesale oil and gas prices because of the rapid rebound in global demand. The war in Ukraine has added to these pressures.
The Government did not wait for a further budget cycle to address these challenges. Instead, we acted early, earlier in fact than most other governments. We brought in measures worth €2.4 billion to help this year. We introduced a package of significant measures in February, costing more than €500 million, that were designed to ease the impact of rising costs on households, particularly those on fixed and low incomes. These measures included energy credits, excise and VAT reductions on fuel and energy, the extension of the low VAT rate for tourism and hospitality services, a reduction in the caps on school transport fees for multiple children, maintaining the enhancement of the diesel rebate scheme and reducing public transport fees by 20%.
In addition, we took a number of measures targeted specifically at low-income households. Additional fuel allowance payments were provided in March and May to more than 370,000 households. The fuel allowance is not designed to pay 100% of a household's fuel costs but it is a substantial contribution from the Exchequer, through the carbon taxes we raise, to those 370,000 households, each of which receives more than €1,000 through the scheme. The approach of focusing on lower-income households is important as we know they have less capacity to absorb price increases. That is why we complemented general social welfare and taxation measures in recent budgets with measures specifically designed to help those at risk of poverty. The social welfare package in budget 2022 was the highest in 14 years, with 1.4 million people receiving a €5 increase in weekly payments, and more if they have dependants or are living alone. We also introduced a number of targeted measures designed to support those most vulnerable to poverty and the rising cost of living.
Budget measures combined with the February cost-of-living mitigation have significantly increased the incomes of all social welfare household types. The Economic and Social Research Institute, ESRI, and the Central Bank have indicated these measures have been of particular benefit to the lowest-income households. Fuel allowance recipients, for example, have seen their payment increase by more than 55%. I have already indicated the scale of that figure. The full impact of the measures taken to date has yet to feed through, but the Government will continue to monitor the situation in planning future actions and in preparing for the budget.
I turn now to the proposals in the motion from Sinn Féin. The proposal to establish a discretionary fund suggests we do not have one. In fact, we do. The community welfare service makes discretionary payments every day of the week to help people with additional costs they cannot reasonably be expected to meet. These include urgent need payments to people who would not normally qualify for supplementary welfare allowance, including those in full-time employment. The supplementary welfare allowance scheme is not budget-capped; it is demand-led. While I understand the intent of the proposal, there is no need to establish a separate fund. Instead, it is intended to increase awareness of the existing scheme through more intensive media communications over the coming weeks. I want to make the situation clear for people who might not understand the phrase "demand-led". If more people need the payment, that cost will be met by the Exchequer. There is no cap on the amount that can be paid out through the supplementary welfare allowance scheme. If more people need it or there is a need for higher payments, those payments will be made. There is no cap on the budget for that provision.
The motion asks that walk-in access to the community welfare service be reintroduced. This suggests there is currently no walk-in access. In fact, although telephone-based services were introduced as part of the Covid-19 response and are still in place, a community welfare officer is available in all main Intreo centres around the country, during business hours on each working day, for walk-in services. An officer is also available to attend smaller Intreo centres or branch offices or, indeed, at the person's home in emergency situations. The telephone contact service operates alongside the in-person service. This means citizens no longer have to meet in person with a community welfare officer to make a claim. Indeed, many claims can be taken and decided over the phone. In many of these situations, as Deputies know, the community welfare officer has knowledge of people, their background and situation, and is in a position to make a prompt decision. Even if there is no meeting in person, a decision can be made once the person is spoken to over the telephone.
The proposal to introduce a three-year refundable tax credit for all existing and new tenancies, which it is claimed would put "a month's rent back into renters' pockets", is an old idea and one that would have a significant cost to the Exchequer. The question we must ask is whether it would, in fact, put money in the right hands. A previous rental tax relief was abolished in budget 2011. The view of the independent Commission on Taxation and Welfare was that this relief would increase the cost of private rented accommodation. In effect, the Exchequer was increasing the income of landlords rather than reducing pressure on tenants. That is an essential point and I am surprised this proposal is included in the motion. If the Government introduced such a measure, we would be accused of assisting landlords and developers by providing more funds to that sector. As Deputies know, it would result in putting more income in the hands of landlords.
There is a real risk that pumping more money into the rental sector in this way will just inflate prices and will not help renters.
The Housing for All strategy sets out a target to deliver 33,000 new units per annum. The application of Exchequer resources to support housing, should, in the first instance, be used to fund this new housing. In the 12 months to the end of March, over 22,000 new homes were completed. This year, the Government's target is 24,600 homes. We recognise that there are ongoing challenges to the delivery of housing but we are confident that this plan can deliver and we are completely focused on its implementation.
The Government acknowledges that fees for early learning and childcare can place a financial strain on families and has already set out a range of actions to address this issue. Significant progress has already been made. More than 100,000 children now avail of two years of preschool education each year under the early childhood care and education, ECCE, programme and the national childcare scheme provides subsidies to more than 80,000 children. Findings from a recent review reveal that people using the scheme have saved money - 38% have saved at least half of their childcare costs- are making greater use of early learning and childcare services, and are working more hours themselves. The Government is committed to continuing to invest in this scheme with spending to increase to at least €1 billion this year.
Ireland has one of the highest rates of minimum wage in the EU, which is good. In addition, the share of workers on or below the minimum wage as a percentage of the total workforce has reduced from over 9% to about 6% in quarter 4 of 2020. Since the establishment of the Low Pay Commission, the national minimum wage has increased by 21%. This compares with an increase in consumer prices of 7% in the six years to December 2021. We acknowledge that prices have increased substantially since then. The Government is supportive of the Low Pay Commission and believes that changes to the minimum rate should be informed by the work of this commission.
Future actions should complement these measures and build on the services already in place, rather than set up parallel or duplicate streams of work. That is not to say that we believe no further measures are necessary. The Government has not been found wanting and will continue to monitor the situation. We will take on board the advice of bodies such as the Low Pay Commission and the suggestions from this House to respond appropriately at the right time, as we have done to date.
I listened to the Minister of State's speech. While the Government may claim it is doing everything it can to assist people, the reality is that assistance is not reaching many of them. That is the experience I come across every day of the week and I am sure the Minister of State and other Deputies come across the same experience.
Last week a lady called to my constituency office. I will call her Anne. She has two children and is renting. The landlord said he was selling the house and she needed to go elsewhere. She could either go to a place that would not take housing assistance payment, HAP, or get nowhere. Because she ended up with a landlord who would not take HAP, that resulted in a 35% increase in her rent. She works in a fast-food chain on minimum wage. She is trying to raise two children, one of whom is on the autism spectrum with all the additional costs that come with that. Her experience is the same as that of thousands of others who are in desperate situations. The cost-of-living crisis is grinding them into the ground. This woman told me that some days of the week they eat beans because there is nothing else. If she does not do that, she will not have enough to pay the rent.
We need to find means to address that type of situation, other than telling people to go to the community welfare officer. She has gone to the community welfare officer several times when there were other crises and she knows that she will be refused if she keeps going back there. The reality is that we cannot treat people in this manner. We need to recognise that poverty is real for these people. The only way we can deal with it is to ensure we have adequate support for them and move these people into better employment on proper wages. While the Government can talk about the minimum wage increasing, the reality is that the minimum wage is a trap in poverty for most of them.
The Minister of State spoke about the fuel allowance and other things. Most of those are for people who, unfortunately, are in receipt of social welfare and have no other option. Many of us meet other people who are not on social welfare and are in low-paid jobs. They are also in a trap, trying to raise a family, trying to pay mortgages or rent, and caught in a situation they simply cannot get out of. We need action from Government. We put forward firm proposals and the Government needs to embrace those proposals. The Government should support the Bill by implementing it.
I commend my colleague, an Teachta Kerrane, on all the work she has done to highlight the reality of people in such circumstances under this Government. The Minister of State cannot pretend that he does not know there is a problem. He has acknowledged that there is a problem. He is telling people something will be coming for them in October. People cannot wait until the budget. They need urgent action now. The Minister of State advised people to shop around. I think he has acknowledged how hurtful that comment was for people struggling to make ends meet. I want to quote the food writer Caitríona Redmond:
If you’re on a tight budget you are already buying own brand products. In most cases you’d be hard pressed to find a branded item in your shopping basket ...
If you take home €500 per week but need a full tank of petrol to get to/from work which cost €65 a fill this time last year but costs €98 a week this year that’s €33 less you have per week (€1,716/year), before you go shopping [even if you shop around].
Something has to give. It is not a question of the price difference between Brennan's bread and a value loaf. Families are going hungry today.
I listened to the Minister of State's speech. I especially liked the part where he said the Government has not been found wanting. I would love him to take that message to the people that I represent who are making the choice between heating their homes and having food on the table or putting fuel in the car to get their kids to school versus being able to pay their utility bills. They know that the Government has been found wanting because they are living with the reality of what it has done and how much it has been found wanting. Instead of trying to explain to families that there is no problem or that somehow they are at fault, I urge the Minister of State to listen to the lived reality of people in his community and in mine. They are struggling now and cannot wait for the budget.
Workers and families across the State, including in my community in Cork city, cannot catch a break. They are forced to make incredibly difficult choices which no family should have to make between paying a bill and putting food on the table. That issue will rise further up the agenda as time goes on. They have to choose between turning on the heating or filling the car to go to school or work. For months we have been urging the Government to tackle the cost-of-living crisis. The cost-of-living crisis did not arise yesterday or the day before. We have been talking about it for months. It is not just about fuel. It is about childcare, rent and all the additional costs that families have to fork out for because we do not adequately fund our public services.
We have been urging the Government to act on this. Instead, we are faced with a Minister of State telling people to shop around and stop complaining. Shopping around is no answer when childcare costs are akin to a second mortgage. It is no answer when increasing food prices will affect every retail outlet and the same is true with energy prices. It will do nothing for runaway rents or for the back-to-school costs that families will experience this summer in the hundreds of euro and often over €1,000.
It speaks volumes that we have seen a Tory government in Britain moving to address the cost-of-living crisis to a greater effect than anything from Fianna Fáil and Fine Gael. The Government needs to stop dragging its heels. We need to get cash into the pockets of workers and families who need it. Ministers have made much of the social welfare supports available. The current social welfare rates do not match rising energy and food prices. The majority of workers are not benefiting from some of the increases, such as the fuel allowance increase.
We need targeted measures for families and workers who need help. We need reductions in the cost of home heating oil. We need increased social welfare rates to match the rate of rising prices. We need a reduction in childcare costs which are crippling families and keeping people back from work. We need a ban on rent increases. Waiting for budget day will not cut it.
The time to act was yesterday, and the next best time to act is today. I urge the Minister not only to pass this motion but to implement it.
I commend Deputy Kerrane. I will focus on child poverty. The impact of food poverty on children is a major concern. This is not a new phenomenon. It is something we have had for years in this country. Even before the most recent increases in the cost of living, the Joint Committee on Children, Disability, Equality, Integration and Youth was examining child poverty. Guests presented to the committee on the increase in the use of food banks. There is an impact on children when they do not get access to the proper and basic three meals a day. It is a reality for many families and children.
Let us think about that for a second. How would any of us feel if our children or our family's children were going to school hungry or with no lunch? In some cases, parents may be making the decision not to send their child to school because they know they do not have the lunch to put in their bags and do not want them to be embarrassed. The costs of school trips have increased. There is pressure on children to try to pretend that everything is okay in their world when they are struggling. There is an impact on children if they are not getting adequate food and nutrition. We all know that is not good for learning. It is not good if children are going into school cold or if they are trying to do their homework where there is not adequate heating. Perhaps they do not have access to all the things they need, including broadband and everything else. Many people take those things for granted.
We need to stop for a second and think about what we are talking about. We are talking about children here. We are talking about very young children who are seriously struggling. Parents are under serious pressure. They are heartbroken that they cannot provide food and facilities for their children. Perhaps they cannot provide the right books, uniforms, coats or shoes. That is as basic as the situation is getting in Ireland in 2022.
I will challenge the point that 38% of people have saved at least half of their childcare costs. I would love to know who they are and where that figure is coming from. I dispute that figure.
CWOs provide an excellent service. However, that service is not for everybody. People in any sort of employment, whether part time or for a few hours a week, will be told they do not qualify for a CWO payment. It is as simple as that. It is not right to say that people can go regularly to the CWO because that does not apply in the case of many people. We know that because people are coming to our constituency offices and asking us to contact the Society of St. Vincent de Paul on their behalf because they have already tried the CWO.
I welcome and support the motion. I will start by responding to the Minister's response to the point that is raised in the motion about the establishment of a discretionary fund. It is true to say that the community welfare service makes discretionary payments and nobody would argue against that. What worries me, however, is the fact that the number of people who are receiving payments is not very high, especially with regard to exceptional needs payments and urgent needs payments. In a response I received directly from the Minister, I was told that in 2021, more than 2,300 exceptional needs payments amounting to €750,000 were made to assist with household bills and heating costs. To the end of March of this year, some 780 exceptional needs payments amounting to €167,000 had been made across the entire State to assist with household bills and heating costs.
Most of us in this House have been around a long time. We all deal with CWOs and the Department of Social Protection but something is not computing in respect of the volume of figures I have shared. I have noticed a trend in the past five or six years, while also noting the excellent work that individual CWOs do for their clients, service users and people who come to them, in exercising their discretion. We do not have the exact evidence for my assertion yet but one hopes one's political gut hopefully serves one well. A centralising tendency is creeping into the Department of Social Protection, which is trying to reduce the number of payments that are going out under the supplementary welfare allowance or through exceptional needs payments and urgent need payments. People's access to those payments is being suppressed. That is not happening at CWO level, but when dealing with people who come to my office, I find I am more often ringing the 0818 number. There is increasingly a suppression of that human interaction between the person who is applying and the deciding officer. The point is that I believe strongly that the Department is by stealth trying to take the discretionary element out of those key payments. We agree they exist but we also agree, now we are all interacting with each other again, that we need to go back to a model whereby people can have a walk-in service. That is what we are talking about. We want the walk-in service to be resumed. We need the element of discretion to be embedded into the structures again.
I do not understand why applications are more often going up the line to somebody who has no relationship whatsoever with the applicant or has not had a human interaction with the applicant. It runs contrary to the foundations of the supplementary welfare allowance scheme as it was established by former Deputy Frank Cluskey all those years ago. We need to go back to that. There is unmet demand out there. People find it difficult to engage directly and increasingly we, as Deputies, are interfacing to try to contextualise people's individual stories. We all know what the stories are. We know exactly where people are struggling. It is well evidenced at this stage and is plain for everybody to see.
It is not just people who depend on the Department of Social Protection for their income who are struggling. The working poor are also struggling. We need to find some mechanism, through schemes such as the supplementary welfare allowance, for example, to provide for a greater number of urgent needs payments. I am poring over numbers. In October 2021, 24 urgent needs payments were made, if the figures I received in response to a parliamentary question are to be believed and we take the figures provided by the Department absolutely at face value. In November, 36 such payments were made. In December, 38 were made. In January, 26 were made. In February, 25 were made. In March, there was an upward spike to 45. Those are the figures for urgent needs payments, which is a specific category. Those numbers worry me. I can conclude there is a deliberate suppression in the number of people who are applying and refused payments. We do not have those figures but they will come out in due course, I am sure, when the right questions are asked. The alternative conclusion is that the level of discretion has been taken away. Neither God nor man could convince me that in March only 45 people throughout the country applied specifically for urgent needs payments. That is based on a reply to a parliamentary question I received lately. If I am misquoting figures, somebody will correct me. I am happy to be corrected, but I have the information here in black and white.
We keep raising the issue of the fuel allowance and access to it. I know it is not the most important topic during these summer months. However, it will not be long until we are into the autumn and winter months again and the issue will be high on the political agenda.
I have called previously in this House for some sort of scheme to be put in place for certain people. While it is acknowledged that there has been an increase in the fuel allowance for those in receipt of it, there is a whole category of people who have worked all their lives, put children through college and are living in C-, D- and E-rated houses. They do not have access to grants and do not have the means to upgrade their houses, but they could very well do with an additional supplementary payment for fuel. If the Government were to create a second category to encapsulate those people who have a modest occupational pension or a contributory pension and who do not meet the criteria for access to the fuel allowance, it would be a good day's work.
Very many of the people to whom I refer, because they are of a certain age, would have voted Fianna Fáil historically. It would be a fair assessment to extrapolate that they have probably turned away from Fianna Fáil but maybe Fianna Fáil could go back and look at that category of people, if at all possible. I urge the Green Party and Fine Gael to do the same because this is all coming into sharp relief at a time when there is a fuel crisis. That is a very obvious thing to say but if it is possible to create a second category for the fuel allowance that would encapsulate far more people, that would give them just a little bit of headroom and see them through the next winter. The same Minister of State was in the House the last time I raised this during the debate on a previous motion. I hope to address the line Minister with policy responsibility for this in due course as well. We have to look after those people. They made the biggest sacrifices in this country in the 1970s and 1980s when they paid big money in taxation and still they were able to educate children and put them through college. I am probably a product of that system, dare I say it.
I support the motion. It is a worthwhile motion but we must look again at the role of the community welfare officer. We need to buttress that facility. The community welfare officers that I deal with know the people they are dealing with well. They know the personalities and they are embedded within their communities. The level of discretion they have is paramount and is key to protecting people and we need to go back to that, back to the well.
The rising cost of living, especially as it relates to the cost of food, is an incredibly serious issue affecting households across Ireland. I thank Deputy Kerrane and Sinn Féin for the opportunity to discuss this important matter and for the practical and considered solutions they are offering.
Rising energy costs, skyrocketing rents, childcare fees that are more expensive than mortgages and families forced to pay for expensive private healthcare because public services are practically non-existent are all contributing to the cost-of-living crisis. Recent research from Permanent TSB has found that over 60% of people feel they will have to cut back on food spending in the coming year due to the cost-of-living crisis. Social Justice Ireland has shown that when housing costs are counted, almost one in five people in Ireland is living in poverty. This is the perfect storm. Decades of underinvestment in State services by successive Fianna Fáil and Fine Gael Governments, combined with the failure to tackle the housing crisis, have left households exposed. Now the energy crisis and looming food crisis have pushed very many people to breaking point.
It is important to acknowledge the steps taken by the Government. The reductions in excise duty supported by most of the Dáil, cuts to public transport fees and cuts and an improved drugs payment scheme are all welcome but in many cases these and other measures, such as social welfare increases, were long overdue anyway. The Social Democrats have repeatedly proposed measures such as a ban on rent increases, increases to the national minimum wage, a €300 refundable tax credit to those on incomes below €50,000 and a further increase in core social welfare rates. Families need temporary measures to address the current crisis but more substantially, they need a fundamental reform of our State services to address the real issues underlying the cost of living. We are in desperate need of a Government that will tackle housing, childcare and healthcare costs, including for those with disabilities and long-term illnesses. If we want to improve people's quality of life and put money back into their pockets, then there must be a comprehensive and strategic approach to addressing the chronic deficits that exist in our public services.
In our alternative budget we proposed the concept of universal basic services and the idea that everyone is entitled to a range of public services that are free at the point of use. In progressive societies there is a minimum standard of living below which nobody should fall. This is the social contract. In return for the rates of tax people pay, the very least they should expect is a decent level of public service. Sick and elderly people should be able to get a bed in a public hospital, children with disabilities should get the therapies they desperately need, families should have affordable childcare and all communities should have access to affordable and frequent public transport. These are basic standards. They are the least people should expect, but, due to continued underinvestment, understaffing and dependence on families or private means, our State services are so insufficient it makes life more expensive for ordinary people every day. Rent, medical expenses, education costs, and childcare fees all underlie the current cost-of-living crisis. To ease the burden on households, there must be a new approach to public services.
The housing and rental crisis is getting worse, adding increasing financial and psychological burdens on already hard-pressed families. The number of people in emergency accommodation surpassed 10,000 in April, including almost 3,000 children but in reality we know the homeless figures are even higher. In the past eight years, house prices have doubled. They have increased by more than 12% in the past year alone. Rents have also doubled in a decade, while housing costs have skyrocketed. We are seeing a growing number of people stuck renting who would like to be able to afford to buy their own home. We are seeing house prices about to reach record levels, surpassing their Celtic tiger peak. Home ownership levels are in free fall under this Government and home ownership among adults of prime working age, between 25 and 54, has collapsed, according to the Parliamentary Budget Office. Young people and families are being priced out of the rental market and home ownership is a pipe dream for many. The Government's response has been wholly inadequate. Renters cannot continue to pay more and more. We have some of the highest rents in the European Union which are a major cost for individuals and families and are also a significant economic cost. We need a radical increase in the supply of cost-rental and affordable homes to meet the housing needs of people, as well as a ban on rent increases and improvements in security of tenure for renters.
Childcare costs range on average from €800 to €1,350 per month, per child. This often forces a parent - invariably the mother - to reduce her involvement in or leave employment. At the same time, childcare workers are very poorly paid and retention in the sector is extremely difficult. The problem stems from underinvestment in children by successive Governments for decades. Core funding for early learning and care and for school going children is so inadequate that families have to sacrifice just to get by. The State spends just 0.3% of GDP on early years, which is well below the European average of 0.8% and the UNICEF recommended benchmark of 1%. This underinvestment is felt most acutely by one-parent families and those in disadvantage. This underinvestment is not only a substantial component of the cost of living for young families, it also perpetuates inequality.
The cost of living is even higher for disabled people. The Cost of Disability in Ireland research report, which was commissioned by the Government, revealed that people with disabilities face extra costs of up to €12,300 annually for transport, fuel, equipment, aids, medical expenses and much more. As a result, Ireland has one of the highest rates of poverty and social exclusion for disabled people in the EU. The Progressing Disability Services for Children and Young People programme is failing children and their families. Waiting lists for assessments and therapies mean that private services are the only hope of intervention for some families. This forces parents to make impossible financial choices and sacrifices, while for others it is simply not an option and they can only stand by as their child is denied vital therapies and supports. Those with the means to pay for private services do so and those who cannot afford it are just left on those never-ending waiting lists.
The situation is no different for adults with disabilities. The Ombudsman's report criticising personal transport supports described the available scheme as "inadequate, unfair and inequitable". This failure increases social isolation and reduces employment opportunities. There is a need for targeted, social health interventions to enable people with disabilities to live independent lives.
This motion's focus on food is incredibly important. Too often it is forgotten that food is a matter of public policy, just like education, transport and housing. The availability, cost and quality of food are all shaped by Government and EU policy. Food prices are rising. This hits all households. We are seeing more families having to turn to food banks. These fantastic organisations provide vital work but they are indicative of the poverty so many people face. Parents are forgoing meals in order to ensure that their children are fed. Families are cutting back on groceries to pay rent. This is deeply worrying. It is simply wrong and it is incredibly unhealthy. The least we should expect in a wealthy country is that all people should have access to sufficient healthy food.
Our current food system benefits larger processors and retail giants, not normal people and certainly not producers. While food prices are rising, producers are not making more. Small farmers, inshore fishers and small producers are barely getting by. The Government spends hundreds of millions of euro annually subsidising food production, but how much of that actually benefits farmers and consumers? We are all aware of cartel-like practices in some areas of the agricultural sector. Farmers are entirely dependent on processors and factories for prices, which often bear no relation to production costs.
A food system that respects farmers and fishers, and helps consumers to access healthy foods produced as locally as possible, benefits ordinary people at both ends of the process: farmers and consumers. For too long, large retailers and processors have controlled the sector by setting prices, changing contracts, and simply operating for their gain only. Food is fundamental. It is a basic need that shapes our health and well-being. We need much greater regulation of our food system. We need fair prices for food producers and affordability for families.
This motion for a proposed cost-of-living cash payment is a practical and much-needed intervention that would help to alleviate the burdens on families and ordinary people until we get a Government that is willing to systematically take on the vested interests and reform our State public services.
Debate adjourned.