Dáil Éireann díospóireacht -
Tuesday, 14 Feb 2023

Vol. 1033 No. 3

Cost-of-Living Supports: Motion [Private Members]

Deputy Pearse Doherty

I move:

That Dáil Éireann:

acknowledges that:

— the cost-of-living crisis continues to put workers and families under significant financial pressure and there is a growing urgency to ensure supports are adequate, available, and accessible; and

— emergency action must be taken to give workers and families a much-needed break from the cost-of-living crisis;

notes with concern that:

— almost 595,000 people (11.6 per cent) in the State live on an income below the poverty line, with difficulties in making ends meet now a feature of the daytoday life for many households across different income distributions;

— a report launched by Barnados Ireland this month shows that food poverty is worsening, with 10 per cent of parents surveyed forced to use food banks in 2022 and 29 per cent reported skipping meals to ensure their children could eat;

— average gas bills have gone up by around 140 per cent over the past two years, while the average electricity bill has increased by around 115 per cent; and

— recent figures from the Economic and Social Research Institute estimate that the estimated share of households in energy poverty has increased to 29 per cent, a record high;

notes that:

— the most recent Budget, designed by then Minister for Finance, Paschal Donohoe TD, and Minister for Public Expenditure and Reform, Michael McGrath TD, knowingly chose to not fully protect people on lower and fixed incomes from rising inflation and the growing cost-of-living pressures;

— Fine Gael Minister for Social Protection, Heather Humphries TD, and Cabinet colleagues cut social welfare rates in real terms given the current rates of inflation; and

— this is further evidence that the Fine Gael, Fianna Fáil and the Green Party Government is out of touch with the struggles facing ordinary workers and families alike;

condemns their collective decisions which have forced large numbers of parents to skip meals so their children have enough to eat, and led to record numbers of families requiring support from voluntary organisations to provide food parcels and vouchers; and

calls on the Government to introduce the following measures as part of a broader suite of actions to support workers and families throughout 2023:

— commit to the payment of a "Spring Bonus" for those relying on working age social welfare payments, including pensioners, people with disabilities, carers and lone parents;

— extend the Fuel Allowance eligibility to Working Family Payment recipients, to reach families who are in work on low incomes;

— establish a discretionary fund to provide financial support to households experiencing severe utility debt; and

— ensure Community Welfare Officers are available in the community to provide urgent supports and in-person appointments.

I welcome Ryan O'Connor, who is in the Gallery watching these proceedings.

The cost-of-living crisis continues to bear down on workers and families. Inflation affects everybody but it does not affect everybody equally. Those on lower incomes suffer a greater reduction in living standards given that they spend a greater proportion of their income on essentials such as energy and food. Those essentials have seen the steepest rise in cost over the past year and more, and this is pushing households to the brink.

Workers and families have stretched and managed their incomes to the last cent but there comes a point for every family when there is nothing left to cut. This is what we are seeing today in many families across the State. There has been an increase in hardship, financial difficulty and poverty. Almost 600,000 people now live on incomes below the poverty line. The latest report by Barnardos should be a real wake-up call for the Government. The Government should not be second-guessing this report. These are people on the front line telling the Government what it is like in the real world - not in the ivory towers where Ministers sometimes reside. Barnardos found that of the parents surveyed, the number using food banks had doubled to 10%. It found that one in five parents did not have enough food to feed their children at some point in the past year and parents were skipping meals to ensure their children were able to eat. Many of these parents are in work - earning their poverty, as it is now known. This is an appalling picture of life for so many.

Spiralling food prices are compounded by energy bills that are throwing household budgets into chaos. A report last year by the ESRI found that one in three households was living in energy poverty. Behind these statistics are the grim choices faced by households day in, day out; for example, whether to cut back on food or turn the heating off. Over the past two years, the average gas bill has increased by 140% and the average electricity bill has increased by 115%. This is more than double for these households. For those on low or fixed incomes, these costs can simply not be absorbed so something has to give. We are witnessing a tale of two Irelands.

Yesterday the European Commission updated its growth forecasts for this year with economic growth here now expected to reach 4.9%. This was celebrated by many, including Ministers. Some people really need a reality check. They need to come down and recognise the challenges people are facing in their daily lives. What is there to celebrate when a Government cannot convert this economic growth into decent living standards for our people? That is the question people ask. What does it tell us about the health of our society and the performance of this Government when it celebrates high economic growth while the number of parents using food banks doubles and households are plunged into energy poverty? Every parent who is forced to use a food bank to feed their children indicates a failure not on the part of the parent but on the part of the State. Every household that is forced to deprive itself of warmth in the winter months is a failure not of the household but of the State. It is the clearest evidence that the Government has failed to tackle the cost-of-living crisis and that Fine Gael, Fianna Fáil and the Green Party are out of touch with the struggles faced by ordinary families day in, day out.

Action must be taken to address the hardship so many are suffering, to ease the pressure on them and to provide support. The State has the resources to protect the most vulnerable and support those on low and fixed incomes. In this motion, Sinn Féin is calling for the payment of a spring bonus. This is a double payment for those relying on a working-age social welfare payment, for pensioners, for people with disabilities, for carers and for lone parents; some 1.3 million people in total. We are calling for the fuel allowance to be extended to those in receipt of the working family payment in order to support working families on low incomes and for the establishment of a discretionary fund to provide financial support to those experiencing utility debt. This package is not only doable; it would go a long way to support those who are suffering at the sharp edge of the cost-of-living crisis. This needs to be part of a wider package of supports in respect of the cost of living. Any Government that is serious about tackling financial hardship and poverty would support these proposals and implement them. This is what Sinn Féin is calling on the Government to do. We are asking it to bring forward the necessary cost-of-living measures and as part of those measures, incorporate a spring bonus, an extension of the fuel allowance, a discretionary fund and a number of other measures we have identified.

Deputy Mairéad Farrell

I saw yesterday how the Government was in celebratory mode. It was celebrating that Ireland has the fastest growing GDP in all the EU. I am sure this news must have come as great comfort for all of those currently struggling to pay their bills. I am sure all those anxiously waiting for the eviction ban to be lifted must have slept a little easier last night. I am sure spontaneous street parties broke out among the 11,000 citizens who are homeless. In the mind of this Government, the boom times are getting even boomier. I am sorry to burst the Minister's bubble but nobody outside of this out-of-touch Government would embarrass themselves by cheering about our headline GDP numbers at a time like this. Maybe Fine Gael has forgotten about the phenomenon known as "leprechaun economics", but the rest of the State has not. Here in the real world, we have families who have to go without certain daily necessities like heat, food and electricity. We have people on low and fixed incomes who have been pushed to the pin of their collar because of inflation. We have renters terrified that the eviction ban is ending and they cannot find alternative accommodation because - guess what? - the Government has not supplied the required housing.

That is why we would introduce a spring bonus for those on working-age payments, including lone parents, pensioners and people with disabilities. We would extend fuel allowance eligibility to working family payment recipients to reach families who are in work but are on very low incomes. We would extend the eviction ban so that those who are currently terrified of losing their homes can sleep a bit easier. We would also grant relief to those whose mortgage costs have exploded with the recent ECB interest rate increases.

We know that the Government can help those who are struggling. It cannot in one breath tell us how well the economy is performing and then in another, tell us the funds are not there to support very vulnerable people who are being pushed to the pin of their collar because we are talking about real lives. Sometimes we get caught up in statistics but these are people who are really struggling and hurting.

Deputy Imelda Munster

This motion is very important for hundreds of thousands of families and individuals on low and fixed incomes. We are constantly trying to ensure that every section of Irish society gets some sort of relief during this cost-of-living crisis. We are forced to do this because the Government has been too slow or completely unwilling to act.

Last week, we put forward a motion for mortgage interest relief. It was rejected out of hand by the Government. Rents in 2022 were 13.7% higher than in the same period in 2021. The average rent at the end of last year was €1,733 per month. It is almost €1,000 more expensive per month than it was in 2011. In reality, we all know rents are much higher than that. Again, when we put forward proposals that included reducing rents and providing real security of tenure, that was also rejected out of hand by the Government. Thank God we managed to block water charges because I dread to think what the Government would be charging people for water at this point in time.

This motion is very important for hundreds of thousands of families and individuals on low and fixed incomes, who are under severe financial pressure trying to make ends meet; for the 595,000 people with incomes below the poverty line; for the 10% of parents who are forced to use food banks; and for everybody who dreads the thought of opening their gas bill. The ESRI stated that this has caused a record high of 29% of households to go into energy poverty. This motion is important for the majority of workers and their families who do not have access to the fuel allowance. Even if they did have access to it, applications are taking up to four weeks to be processed. Four weeks in a cold winter is a long time and the Government has still not rectified that delay. For once, it must act in time by supporting this motion and introducing a spring bonus and cost-of-living supports in line with it.

Deputy Kathleen Funchion

When I was putting notes together for this debate, I realised that we had a debate on a cost-of-living motion on 15 February 2022. Twelve months later, unfortunately things have got much worse for people. I commend Deputy Doherty on bringing forward this motion.

We have to ask ourselves how we are still in this position. Why are energy companies being allowed to profiteer off the backs of severely struggling families? Barnardos was mentioned by Deputy Doherty. Tomorrow at 11 a.m., its representatives will visit Leinster House and I will host them in the audiovisual room. I encourage the Minister and all Deputies to attend. Government Deputies, too, must be hearing about this in their clinics and constituency offices. Everybody is struggling, and none of us can say we are not aware of the issue.

As was mentioned, there has been a threefold increase in the number of parents resorting to food banks, while 30% of parents have reported they have skipped meals to provide meals for their families and children. That is one in five parents stating that within the past 12 months, they did not have enough food to feed their children. On the one hand, there are celebrations over how well the economy is doing; while on the other hand, people are not able to provide basic meals for their children. I am concerned that tens of thousands of lone parents, in particular, will be pulled further into deprivation. One-parent families are predominantly female led, experience the lowest levels of disposable income and are at the highest risk of poverty. That needs to be looked at.

The fuel allowance, which was mentioned, needs to be extended to recipients of the working family payment because they are, obviously, families on very low incomes. Families cannot pay their electricity bills. This is a continuous issue and people are really struggling. Another issue relates to people not being able to access the community welfare service or to get any assistance or support from it. Moreover, we need to see community welfare officers again based in local health centres, with people able to access face-to-face meetings. That service seems to be totally gone in most areas since Covid, which is being used as an excuse. It is much more beneficial for people to be able to talk to a human being and explain their situation. We have been approached by countless people who are embarrassed to go to the community welfare service or to contact the Society of St. Vincent de Paul, so they ask for our help with that. The Government should hang its head in shame for what it is standing over.

Deputy Chris Andrews

I commend my party colleague Deputy Doherty on bringing forward the motion. The pressure being felt in every community in the State needs to be addressed in a meaningful way whereby ordinary workers and the most vulnerable members of our society will feel the benefit. We see little to no change from energy providers or on the shelves of supermarkets. What we do see are record-high energy bills and record-high profits for the energy sector, with food and energy companies having more than doubled their profits in 2022. Many residents feel utterly crippled in the face of these bills. The residents of Shelbourne Plaza have been hit with colossal bills in recent months because they were locked into astronomical energy rates by the building’s management company. The Government needs to intervene and ensure ordinary people will not be crucified by high energy prices above the already-high charges such as those in Shelbourne Plaza.

We often use figures to reflect the cost of living, but behind every figure is a real person who is being crippled by the energy crisis. Nurses are leaving the country because of high costs and that is having a significant impact on our health service. Earlier I met Amanda Boland and Janice Kiernan. Their dad, Joe Griffin, a 74-year-old man, died in St. James's Hospital on 4 January. They are convinced, and showed me compelling evidence, that their dad would still be alive if staffing levels were the way they should be. The staffing in our hospitals is strained because of the high cost of living, which means nurses are moving abroad. This is the impact that the soaring cost of living is having on ordinary people. It is the human impact of soaring costs.

For those reasons, we need the measures outlined in the motion, such as a discretionary fund to provide financial support to households experiencing severe utility debt. We also need to expand the fuel allowance to those in receipt of the working family payment.

Deputy Martin Kenny

I commend Deputy Doherty on bringing forward the motion. The cost-of-living crisis is biting every community in the country. In my constituency, I regularly deal with people coming to my clinic with various issues relating to bills they cannot pay. Recently, a single mother whose rent has been increased by almost €300 a month came in. She receives the housing assistance payment, HAP, but her landlord, of course, wants a certain amount under the table. She cannot afford to go anywhere else and there is nowhere else to be found that is cheaper than where she is at the moment. She even considered giving up her part-time job to be able to get more HAP to try to cover the payment. There is a crisis throughout the country for many people, and the Minister is aware of that, as all of us are.

I recently spoke to a man working at a filling station who told me there has been an increase in the number of people who no longer fill their tank. They arrive on a Friday or Saturday with a number of five-gallon drums in the boot of the car and fill them with oil to keep their tank topped up, because they can pay for that as they go along. Many people are in a similar position. I recently spoke to the principal of a local school who told me that every year, the school operates a book rental scheme but that in the past three years, many parents have been unable to pay for the scheme and have been asking the school whether they can pay in instalments and sort it out some other way because they do not have the money available. This is a crisis throughout the country for many working families who are doing their best but simply cannot afford these huge increases in energy costs, number one, as well as increased rents and mortgage interest rates. People may have bought a home and be trying to pay for it, but they see more pressure coming on them in that regard.

The Government can afford to do more. Statistics are put out there and there was a mention earlier of the notion that the is economy going well, but summary statistics hide a lot of individual difficulties, and an awful lot of people have individual difficulties. If a millionaire were to move into my home parish, it might appear as though the incomes of everyone in the parish had increased, but that is not the case. The income level would increase only for that one person and that is the tyranny of statistics. The Minister and the Government need to look past the statistics to the reality of people who are trying to survive but struggling greatly, and take on board the measures we have put forward in the motion. They should give a spring bonus to those who are on social welfare payments and try to find mechanisms, as we have suggested here, to help people who are working hard and trying their best but simply cannot afford to live in this economy. They should take on these measures and deliver for the people who need it so badly.

Deputy Dessie Ellis

My constituency, Dublin North-West, has a varied socioeconomic demographic. Those areas of the constituency that are more economically disadvantaged are vulnerable at the moment to the escalating costs of energy and basic foodstuffs. People are justifiably fearful and anxious about their future. There has been a deluge of rising costs across the board, from increased mortgage rates and spiralling rents to rising energy bills and food becoming more expensive, all of which have made it very difficult for many households to keep their heads above water. People have seen a significant fall in their living standards as well.

Nevertheless, it is generally accepted that poorer households face an even higher effective inflation rate because they spend more of their incomes on essentials such as energy and basic goods. Pensioners are especially vulnerable and at risk. Better-off households can generally adapt more easily when faced with escalating costs of goods and services by changing their spending habits, spending less on non-essentials or reducing how much they put aside in savings each month. Many poorer households in my constituency are facing extreme hardship because they are unable to keep up with the rising energy prices and the rising cost of groceries. Such households are disproportionately affected by this crisis.

The measures the Government has taken so far to help struggling families have not been effective and have not kept pace with inflation or with the increases in energy and other costs. There needs to be an urgent response from the Government to alleviate the hardships of families who are facing this daily. Families are being forced to choose between heating their home or putting food on the table, decisions no family or individual should ever have to make. Proper supports from the Government are urgently needed. It had the opportunity to do this and to help struggling families in budget 2023 but failed to do so. It can now help these families by adopting our proposal for a spring bonus. This would help the vulnerable in our society, who are at greater risk during the cost-of-living crisis and who are most in need of supports. There are long-term consequences for many of these struggling families, not least with regard to their well-being and mental health, as they sink deeper and deeper into debt and arrears. The proposed spring bonus is a measure that would go some way to alleviating some of the pressures on struggling families and individuals and should be adopted by the Government if it is serious about helping vulnerable families during this cost-of-living crisis.

Minister for Social Protection (Deputy Heather Humphreys)

I move amendment No. 1:

To delete all words after "Dáil Éireann:" and substitute the following:

"acknowledges that this Government has, since its formation in 2020, provided unprecedented supports to protect people and families, first through the Covid-19 pandemic and now through the increase in the cost-of-living, including:

— a €9.2 billion Pandemic Unemployment Payment support scheme and a further €9.2 billion on Employment Wage Subsidy Schemes to protect workers and families during the Covid-19 pandemic;

— a €2.2 billion Social Protection package in Budget 2023 – the largest in the history of the State, including eight lump sum payments to a value of over €1.3 billion comprising:

— an Autumn double payment of weekly social welfare and Pension payments;

— a double payment of Child Benefit;

— a €400 lump sum payment of Fuel Allowance;

— a €500 lump sum payment to families receiving Working Family Payment (WFP);

— a €500 lump sum payment to people in receipt of Disability Allowance, Blind Pension or Invalidity Pension;

— a €200 lump sum payment to people in receipt of the Living Alone Allowance;

— a €500 lump sum payment to carers; and

— a Christmas Bonus double payment of weekly social welfare and Pension payments;

— a €12 increase in weekly social welfare and Pension rates from January 2023 – the largest increase to weekly payments since the mid-2000s;

— the largest ever expansion of the Fuel Allowance scheme with a particular focus on supporting older people over 70; and

— increased income thresholds for the WFP, so that more families can qualify;

notes that these Budget measures are in addition to previous measures introduced to assist people and families throughout 2022 with the cost-of-living, including:

— a major expansion of the hot School Meals Programme to 320 recently designated Delivering Equality of Opportunity in Schools facilities;

— a €100 increase in the Back to School Clothing and Footwear Allowance;

— two Fuel Allowance lump sum payments of €125 in March 2022 and €100 in May 2022;

— a universal energy credit of €200 introduced in April 2022, followed by three further €200 energy credits, with the next credit due in people's bills in March and April this year;

— a reduction in student fees;

— a 20 per cent reduction in public transport fees;

— a reduction in costs of the Drug Payment Scheme; and

— reduced Value Added Tax and excise duties rates; and

further notes:

— the wide array of measures it introduced clearly demonstrate the huge focus the Government has placed on assisting ordinary people and families with the cost-of-living;

— the unprecedented lump sum supports provided immediate and timely support to pensioners, carers, people with disabilities, lone parents, jobseekers, working families on low-income and those living alone;

— analysis by the Economic and Social Research Institute shows that, combined with the increase in core social welfare payment rates, these lump sums effectively compensated lower income households for price increases and, in fact, were more effective than a price-index linked increase in core rates;

— that the money needed to fund these measures was available due to sound economic management by this Government which has contributed to historically low levels of unemployment; and

— that the Government has already clearly stated that it is keeping the cost-of-living situation under review and is currently considering what further measures may be required."

I welcome the opportunity this evening to discuss the important issue of the cost of living. At the outset I would like to make one important point: no party or person in this House has a monopoly on compassion. There has been a worldwide spike in inflation caused by the war in Ukraine and all of us recognise the very real challenges that people and families are facing. People's utility bills have gone up and the cost of the weekly shop has increased. It is not easy for people at the moment. We know that and it is why this Government has taken unprecedented steps to support our citizens.

To listen to the Deputies opposite, you would swear that we had not done a tap and that we had sat on our hands for the last two years and done nothing to help. The reality is since this Government was formed, it has, more than any government in the history of the State, put in place billions of euro in measures to protect and support our people. We did it during the pandemic. Some €18 billion was paid out through the pandemic unemployment payment and the wage subsidy scheme. That was €18 billion to support and protect ordinary workers and families. But Sinn Féin dismissed that, just like it dismissed all the other measures we have taken to help people with the cost of living: a €2.2 billion social protection package, the largest in the history of the State; a €12 increase in all weekly payments, the highest increase in payments since the mid-2000s; €1.3 billion in targeted lump-sum payments before Christmas to support our most vulnerable; a €500 working family payment; a €500 grant to support our carers; a €500 grant for people with disabilities; €200 for those living alone; a €400 payment for all those receiving fuel allowance; and double payments in the autumn and at Christmas for all pensioners, carers, lone parents and people with disabilities.

Lump-sum payments of that nature have never happened before and contrary to what Sinn Féin says, the independent analysis from the ESRI clearly shows that the approach taken by the Government means that low-income households are better off than if increases in core payments had simply matched inflation. Do not take my word for it. That is the independent analysis from the ESRI.

This Government moved at speed to issue those lump-sum payments throughout November and December yet Sinn Féin stands here tonight as if that €1.3 billion package of targeted measures to support our most vulnerable had never happened. Nor does it want to acknowledge the universal measures we have taken to support working families. Sinn Féin has no time for ordinary people who get up every day and go out and do a day's work.

Deputy Seán Crowe

That is insulting. That is insulting to our supporters.

Deputy Heather Humphreys

We know that. That has long been the party's policy. It wants to tax the working man and woman into oblivion. This Government takes a different approach. We want to support ordinary working people and their families. That is why we had a double payment of child benefit and why we brought in three universal energy credits so that families can get €600 off their energy bills. It is why we have reduced income tax. It is why we have reduced childcare costs by 25%. It is why we have reduced school transport costs and the student contribution fees. This Government stands by working families and we will never apologise for supporting them. Sinn Féin wants to abandon them.

I have listened to the Sinn Féin Deputies pontificate about what the Government should be doing. Let us look at Sinn Féin's record. Sinn Féin is the largest party in Northern Ireland and it has been in office there for decades. So what has it achieved? One in five people in Northern Ireland live in poverty. One out of every four children live in poverty. Half of all households in Northern Ireland are facing fuel poverty. That is the record of Sinn Féin in office. The basic state pension in Northern Ireland is £141. The contributory pension here is €265. If you qualify for the fuel allowance and the living alone allowance, it could be up to €320 per week. That is more than double what pensioners in Northern Ireland receive. As far as the two faces of Sinn Féin are concerned, €320 is not good enough for the pensioner in Castleblaney but £140 is more than enough for the man or woman from Crossmaglen. Sinn Féin is trying to ride two horses. It comes in here tonight and it shouts that our social welfare rates are inadequate but it is a very different story when it is campaigning in the North. There it is going around telling everybody how much better off they will be in a united Ireland. Well, it would be better off now when it comes to their pension and social welfare but that would soon change if Sinn Féin got into Government. Its Deputies talked about what this Government did not do in the budget so I am going to have to look at Sinn Féin's budget submissions. Sinn Féin did not propose any expansion of the fuel allowance for older people. It let old people who have worked all their lives go cold. This Government has expanded the fuel allowance in a major way for people over 70 years. Then Sinn Féin Deputies talked about the working family payment when its own budget proposals would have seen thousands of families have their working family payments cut. That is because it did not increase the income thresholds to take account of the rise in the minimum wage. It is the same old story with Sinn Féin. Its sums do not add up. It always forgets to carry the one.

Its motion spoke of a discretionary fund. This is the third time it has talked about this. The first time it suggested it, it wanted a €5 million fund. Then it proposed a €15 million fund and now it is back again but this time it has not even bothered to put a figure on it, just to set up a discretionary fund: no costings; no criteria; nothing. Now, if a school child handed that in, you would tell them to go back and do their homework. For information, the Government has paid our €58 million in additional needs payments targeted at people in financial difficulties. Sinn Féin always seems to forget one simple fact of life which is that everything has to be paid for. The reason this Government was able to support people during the pandemic, why we have been able to support people over the last year with the cost of living and why we will be able to provide further supports over the coming weeks is due to sound economic management. Unemployment is at a record low. Ireland has the fastest growing economy in Europe. Listening to Sinn Féin speakers tonight, they seem to think that having a strong economy is a bad thing and that it is something to be ashamed of. Do they realise we need a strong economy to pay for all these supports? Sinn Féin cannot even grasp that basic economic reality. At every step of the way, on every policy it has opposed us. None of these supports would be possible under Sinn Féin because its policies are trash and would crash the economy. Sinn Féin is very good at telling everybody how to spend money but it is not so good at telling us where to find it or how to pay the bills. Sinn Féin does not seem to believe in paying some of its bills. You just have to look at the paper today.

Deputy Pearse Doherty

Talk to some of your own Ministers about some of that; some of your former Ministers.

Deputy Heather Humphreys

This motion tonight is a political stunt. The Government is already looking at a further package of measures to help with the cost of living and as has been the case for the last two and a half years, we will not be found wanting when it comes to supporting the people.

Deputy Pearse Doherty

If there was ever a lesson in how out of touch you are, Heather, that was it. Fair play to you. Not a mention of the people at the food banks. An ivory tower politician.

Debate adjourned.