I propose to take Questions Nos. 603 to 607, inclusive, and 617 together.
The costings sought by the Deputy are detailed in the following series of tables.
The Harmonised Index of Consumer Prices used in the tables below are sourced from the Department of Finance’s 2018 Budget Day book. This provides forecasts for inflation for the four years 2018 to 2021 inclusive, and these are the latest published forecasts. However, as there are no projections available for the years 2022 or 2023, costings are provided for the years 2019 to 2021 inclusive only.
All of the costings below are based on 2018 recipient numbers, and include the cost of proportionate increases in reduced rates and the qualified adult rates of payment, where applicable. It should be noted that the costings do not take into account changing trends (increases or decreases) in recipient numbers from 2019 onwards.
The rate increases in line with inflation are calculated based on the Budget 2018 rates that will be paid from the week commencing 26 March 2018.
Table 1: Increases (for certain schemes) linked to the forecast 2019 inflation rate of 1.4% and a €5 increase
Scheme
|
2019 Inflation (1.4%) rate increase
€
|
Cost of this increase
€m
|
Additional amount with a €5 increase €
|
Cost of the additional amount €m
|
Overall cost of a €5 increase €m
|
Jobseeker’s Allowance – maximum rate payable
|
2.80
|
25.2
|
2.20
|
19.8
|
45.0
|
Jobseeker’s Allowance –rate payable to those aged 25 years of age
|
2.10
|
0.4
|
2.90
|
0.5
|
0.9
|
Jobseeker’s Allowance –rate payable to those aged 18 to 24 years of age
|
1.50
|
1.5
|
3.50
|
3.4
|
4.9
|
Jobseeker’s Benefit
|
2.80
|
4.8
|
2.20
|
3.8
|
8.6
|
Supplementary Welfare Allowance
|
2.70
|
2.6
|
2.30
|
2.2
|
4.8
|
Farm Assist
|
2.80
|
1.3
|
2.20
|
1.0
|
2.3
|
One Parent Family Payment
|
2.80
|
5.7
|
2.20
|
4.5
|
10.2
|
Carer’s Allowance – rate payable to those aged under 66
|
3.00
|
8.3
|
2.00
|
5.5
|
13.8
|
Carer’s Allowance – rate payable to those aged 66 and over
|
3.50
|
1.5
|
1.50
|
0.6
|
2.1
|
Carer’s Benefit
|
3.00
|
0.5
|
2.00
|
0.3
|
0.8
|
Table 2: Increases (for certain schemes) linked to the forecast 2019 inflation rate of 1.4% and a €6 increase
Scheme
|
2019 Inflation (1.4%) rate increase
€
|
Cost of this increase
€m
|
Additional amount with a €6 increase €
|
Cost of the additional amount €m
|
Overall cost of a €6 increase €m
|
Disability Allowance
|
2.80
|
21.1
|
3.20
|
24.0
|
45.1
|
Blind Pension
|
2.80
|
0.2
|
3.20
|
0.2
|
0.4
|
Invalidity Pension
|
2.80
|
9.6
|
3.20
|
10.9
|
20.5
|
Table 3: Cost of Percentage Increases for Working Family Payment (formerly Family Income Supplement – FIS)
Scheme
|
2019 Inflation (1.4%) increase
€m
|
5% increase
€m
|
10% increase
€m
|
Working Family Payment
|
6.0
|
21.6
|
43.1
|
There are no set weekly rates of payment for this scheme as payment is calculated based on 60% of the difference in the weekly net earnings of a recipient and the weekly threshold applicable to them. The costs detailed above are calculated using the estimated 2018 expenditure on the Working Family Payment as provided in the 2018 Revised Estimates.
Table 4: Increases for Jobseeker’s Allowance reduced rates of payment linked to the 2019 forecast inflation rate of 1.4% and a €10 increase
Scheme
|
2019 Inflation (1.4%) rate increase
€
|
Cost of this increase
€m
|
Additional amount with a €10 increase €
|
Cost of the additional amount €m
|
Overall cost of a €10 increase €m
|
Jobseeker’s Allowance –rate payable to those aged 25 years of age
|
2.10
|
0.4
|
7.90
|
1.3
|
1.7
|
Jobseeker’s Allowance –rate payable to those aged 18 to 24 years of age
|
1.50
|
1.5
|
8.50
|
8.3
|
9.8
|
Table 5: Increases for pension schemes linked to the 2019 inflation rate of 1.4% and a €4.50 increase
Scheme
|
2019 Inflation (1.4%) rate increase
€
|
Cost of this increase
€m
|
Additional amount with a €4.50 increase
€
|
Cost of the additional amount
€m
|
Overall cost of a €4.50 increase
€m
|
State Pension Contributory
|
3.40
|
69.3
|
1.10
|
22.5
|
91.8
|
State Pension Non Contributory
|
3.20
|
16.1
|
1.30
|
6.6
|
22.7
|
Widow/er’s / Surviving Civil Partner (Con) Pension (aged 66 and over)
|
3.40
|
14.3
|
1.10
|
4.6
|
18.9
|
Deserted Wife’s Benefit (aged 66 and over)
|
3.40
|
0.4
|
1.10
|
0.1
|
0.5
|
Death Benefit Pension (aged 66 and over)
|
3.50
|
0.06
|
1.00
|
0.02
|
0.08
|
Incapacity Supplement (aged 66 and over)
|
3.00
|
0.2
|
1.50
|
0.1
|
0.3
|
Carer’s Allowance (aged 66 and over)
|
3.50
|
1.5
|
1.00
|
0.4
|
1.9
|
Table 6: Cost of increasing all weekly social welfare payments in line with inflation, 2019-2021
All weekly Social Welfare payments
2019 – 1.4%
€m
|
2020 – 1.8%
€m
|
2021 – 1.9%
€m
|
225.4
|
306.7
|
350.4
|
The costs for all weekly social welfare payments includes increasing the qualified child increase, the Living Alone Increase and the over 80s allowance in line with projected inflation. It also includes increasing the rates for the employment programmes including Community Employment, Tús and the Rural Social Scheme but it does not include increasing the top-ups paid on these schemes. Furthermore, it includes increasing expenditure on the Working Family Payment (formerly Family Income Supplement) in line with projected inflation.