Unemployment has reduced from over 15% in early 2012 to 6.3% in August 2017. On the basis of the improving labour market, there have been reductions in expenditure on providing income supports for people who are unemployed.
In arriving at estimates of fiscal space, an assumption is made about the level of Live Register related savings each year. The Expenditure Report 2017 set out costs of €0.3 billion for 2018 in relation to demographics net of estimated savings of €0.15 billion in Live Register related expenditure arising from continued improvement in employment. This estimated saving has already been built into net fiscal space calculations and has been taken account of in the Department of Social Protection’s pre-Budget ceiling for 2018.
My Department constantly monitors the level of spending across all areas of Government, including Live Register related costs. Overall spending in the Department of Social Protection was €77 million under profile at end-August 2017. There is ongoing detailed analysis into the related costs of the Live Register, and this analysis will feed into the Budget Estimates process and the setting of expenditure allocations for 2018, with any savings in Live Register related expenditure, in excess of the amount of €0.15 billion factored into the pre-Budget position, being available for other expenditure priorities.