Dáil Éireann Debate, Tuesday - 22 March 2022
623. Deputy Fergus O'Dowd asked the Minister for Social Protection if her Department is monitoring the impact of recent cost of living measures with a view to their effectiveness given both inflation and also increases in energy prices; and if she will make a statement on the matter. [14604/22]
Amharc ar fhreagraOn an ongoing basis, as part of the normal budgetary cycle, my Department takes careful note of trends in price and wage levels and also takes account of research data including that of the Minimum Essential Standard of Living from the Vincentian Partnership for Social Justice. The social impact of budget measures is also modelled using the SWITCH model developed by the ESRI. It is through this approach that, over the past 10 years, budget measures have exceeded inflation and have also been targeted to support those most at risk of poverty.
Having said that, I am very aware that due to the geo-political situation the increase in consumer prices, especially the increase in fuel and other energy prices, has exceeded even the highest forecasts for price increases.
That is why this Government did not await a further budget cycle but acted early. To help mitigate the effects of these rising costs, the Government announced a package of measures in February, which will have a positive impact on the incomes of all households in our country. This package will cost in excess of half a billion euro.
These measures include an additional lump sum payment of €125 to all households in receipt of the Fuel Allowance payment which was paid last week at a cost of approximately €49 million. This means that low-income households will see an increase of 41% in Fuel Allowance support provided during this Fuel Allowance season compared to last season. When added to the Electricity Costs Emergency Benefit Payment of €200, which will be paid to each household in April, the combined value is €325, which is the equivalent of just under ten weeks of Fuel Allowance payment.
The increase of €10 to the weekly income threshold of the Working Family Payment is also being brought forward. This measure will now take effect from early April 2022 rather than from June.
These measures are in addition to those introduced as part of Budget 2022, which included the largest social welfare Budget package in 14 years. In January, around 1.4 million people received a €5 increase in weekly payments, and more if they have dependents.
In addition to improvements in core social welfare rates, there were a number of targeted measures designed to protect the most vulnerable from poverty. These included further increases to the rates of fuel allowance, qualified child payments and the Living Alone Allowance.
My Department also gives support through the supplementary welfare allowance scheme to provide discretionary payments to people who face difficulties in meeting energy bills.
The Committee on Budgetary Oversight recently reported that the current high rate of inflation is mainly due to external factors.
While, given these factors, there is a limit to what any Government can do, we will continue to monitor this evolving situation very closely.
