Dáil Éireann Debate, Tuesday - 22 March 2022
9. 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 increases in energy prices; and if she will make a statement on the matter. [14569/22]
Amharc ar fhreagraI am taking this question on behalf of Deputy O'Dowd. Is the Department of Social Protection monitoring the impact of recent cost-of-living measures with a view to their effectiveness, given both inflation and the recent increases in energy prices?
On an ongoing basis and as part of the normal budgetary cycle, my Department takes careful note of trends in price and wage levels and 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 Economic and Social Research Institute, ESRI. It is through this approach that, over the past ten years, budget measures have exceeded inflation and have been targeted to support those most at risk of poverty. Having said that, I am aware that, due to the geopolitical 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 that will have a positive impact on the incomes of all households in our country. This package will cost in excess of €500 million. 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 low-income households will see an increase of 41% in fuel allowance support provided during this fuel allowance season compared with 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 had dependants.
I thank the Minister for her response and I welcome the steps she, the Department and the Government have taken so far to help with the rising costs of living. That includes, as the Minister pointed out, the 60% increase in fuel allowance, the rise in social welfare payments and that €200 electricity rebate. I know the Government cannot completely cushion or shelter everyone from the impacts of rising energy costs and inflation and we all recognise that many elements of this are outside of our control and driven by global turmoil. It is very important we make sure the steps we take are having the desired impact. The Department of Social Protection is best placed to recognise those who are most at risk. Is the Minister considering any further interim measures to assist with the rising cost of living? How many people are already benefiting from the extent of fuel allowance and that 60% increase in same?
In or around 400,000 people benefit from the fuel allowance. When I changed the means test criteria, that brought around another 30,000 people into it. It has brought more people into the fuel allowance net. The Government has sought to protect the most vulnerable from the rising costs of living through targeted increases to ancillary social welfare payments such as the fuel allowance, the living alone allowance and qualified child payments. There was an extensive budget package which we sometimes forget about. It was the biggest budget in 14 years and we had a €5 increase across the board. In addition to that, the living alone allowance went to €22 per week. Changes were made to the working family payment and those changes are being brought forward to April. Many things have been done.
