Dáil Éireann Debate, Thursday - 28 April 2022
58. Deputy Pearse Doherty asked the Minister for Finance if he will introduce further targeted measures to support lower- and middle-income families in response to the level of inflation projected for 2022; and if he will make a statement on the matter. [21476/22]
Amharc ar fhreagraThis question relates to the willingness of the Government to introduce further targeted measures to support lower- and middle-income families in response to the high levels of inflation that are projected for 2022 and if he will make a statement on the matter. We are looking for further measures. I am sure the Minister of State's script will include references to everything the Government has done but as he has heard from everybody on the front line, it is not enough.
I thank the Deputy for raising the matter. I do not have a prepared response to his question. Most of the issues he has raised have been dealt with by way of motions in this House. There have already been two such motions this week. There were resolutions last night with respect to Revenue issues. The debate we have had this morning has covered a number of issues around the cost of living and the impact of inflation. Everybody accepts that the projections for inflation are much higher now than they were before the war in Ukraine. This is a matter that can have implications for everybody in Ireland. The people know that no government can fully insulate a country from the effects of the ongoing war in Ukraine. However, this Government is putting in as much effort as it can with the significant €2.1 billion in funding that was announced last October and which will run until the summer. Most of that money has been targeted towards the areas that need it most, which is important.
Of course, all of this is coming at a time when we have emerged, or are still emerging, from the pandemic. The worst effects of Covid, and the allied restrictions on the economy, have been lifted. There is pent-up demand. Many people were waiting to get work done and that has led to a surge in prices because everybody knows it is difficult to get tradespeople to do work in the construction industry and in many other sectors of the Irish economy. That in itself is a good point. There are now 2.5 million people in the workforce, which is the highest number ever in the workforce in Ireland. That figure is even higher than it was before the onset of the pandemic. People are getting back to work. More people are working now than were working before the pandemic. A wage is the best way of helping people with inflation, along with the targeted measures the Government has been introducing. Those measures were outlined at length last week and have been outlined this morning.
The Minister of State made the point that not every part of inflation can be offset by the Government and I recognise that. We have made that point over and over again. Not everybody can be insulated from the effects of inflation. However, a government should make sure the most vulnerable in society are protected first and protected the most. I put it to the Minister of State that the Government is washing its hands of the poorest in society and those who have the lowest incomes, particularly those who are dependent on a fixed income. Social welfare recipients saw an increase of approximately 2% in the most recent budget. Inflation is going to run at over 6% for the year and will be higher than that over the coming summer months. The Government is telling those families it is okay that they are going to be poor. Those families are going to be poor this year. The likes of the people in this House who are well paid, and Ministers who are very well paid, will suffer from inflation as well but they have the resources to deal with it. People who depend on social welfare, disability payments and fixed incomes do not have the ability to deal with the high cost of living and the fact that the Government has not brought forward a social welfare package is disgraceful. Will the Government consider dealing with those who are most affected by inflation and have the fewest resources to deal with it by bringing forward a social welfare package that increases core social welfare payments by at least €5?
A social welfare Bill is not required to bring a social welfare package through the House. We have seen that with respect to taxation and we saw it on several occasions with respect to Covid-19. I already mentioned the free fuel allowance. The scheme was extended by a number of weeks, which was worth more than €1,000 to the 390,000 people who are in receipt of that payment. That is a high figure and the people who benefited are the most vulnerable in the country. It is a fuel allowance. Since its inception, it was never meant to cover the entire cost of fuel. It is an allowance towards the cost of fuel. It was never intended to cover 100% of the cost of fuel. However, that figure is substantial.
I accept that people could do with more assistance and that is why everybody got the €200 energy credit, including people availing of social protection, low-paid workers and those on minimum wage. An additional lump sum of €125 for the fuel allowance will be paid to those 390,000 participants. People who have a free travel card have the benefit of that. A 20% reduction in many public transport fares will come in at the end of this month. The maximum amount that people who avail of the drugs payment scheme must pay has reduced from €144 per month to €80 per month, which is affecting 70,000 families.
I am not sure if the Minister of State does not get it. I do not know if he does not care or if the Government does not care. I do not want to personalise this criticism to the Minister of State. It must be accepted across the political divide that those who are most in need are those who are on low incomes and those who are on social welfare fixed incomes. The Government has not responded by increasing core social welfare payments. That means the decision that has been made by the Government, with which it is satisfied for the next number of months, is that these families will become poor. Many of those families were already in poverty or at risk of poverty in the first place. Many are in homes that are poorly insulated and, therefore, have higher energy costs than many other homes. The Government is turning its face against an increase in social welfare payments. Let me be clear when I say I do not care if a social welfare Bill is required or a measure is introduced. What I want is the political will to do it. The legislative process is not blocking the Government making a change. There is a lack of political will on the part of the Minister of State and his Cabinet colleagues to actually understand that we need to target initiatives and interventions at those who are most in need.
In case some people did not hear my earlier response, I reiterate that the Government has introduced the energy credit which effects everybody the Deputy has spoken about. The lump sum of €125 for the fuel allowance will be paid to 390,000 people. That scheme has already been extended by a number of weeks. There will be a temporary reduction in public transport fares and many, though not all, of the people the Deputy has referred to have free travel passes. Those who have to pay for public transport will benefit from the 20% reduction in the cost of fares. Any people who do not have a medical card will benefit from reduced costs under the drugs payment scheme in terms of what they must pay the pharmacy. The working family payment budget increase has recently been brought forward from 1 June to 1 April. That was a budget day measure that, under the Social Welfare Act, was intended to come in on 1 June. We have already brought that increase forward because it helps working families with children. That is one of the most important benefits we have introduced to the system. There has also been a reduction in the cost of school transport.
We will now go back to Question No. 15.
