Dáil Éireann Debate, Thursday - 28 April 2022
84. Deputy Pádraig O'Sullivan asked the Minister for Public Expenditure and Reform if additional supports will be introduced to support families most impacted by the increases in the cost of living; and if he will make a statement on the matter. [21373/22]
Amharc ar fhreagraWill any additional supports be introduced to support families who are most impacted by the increases in the cost of living? It is opportune that this question follows that of Deputy Cahill, which skirted the same issue.
Budget 2022 included a number of measures to support citizens faced with increased costs of living. The Government is acutely aware, however, of the challenges still facing many households, in particular relating to energy bills and especially for those on lower incomes. In response to previous questions, I set out a number of measures the Government has brought forward. In February, there was a package of more than €500 million, which continues to be implemented, including the energy credit of €200 inclusive of VAT. The Government has also placed an emphasis on trying to reduce the costs individuals and families face, which is why, for example, the reduction in the drugs payment scheme threshold to €80, benefiting more than 70,000 families monthly, is a very important measure. In addition, there has been a reduction in the school transport fees families face, an important measure that was welcomed by many, and a reduction in public transport fares, benefiting about 800,000 people. That has been implemented in the Deputy's and my city and county of Cork and I think it is to be implemented in Dublin as well in May. That measure will certainly help and make a difference.
Of course, much of the focus in respect of the cost of living pressures has been on the area of fuel and we have done our best as a Government to make progress on that issue while having to comply with the constraints we are acting under, such as the energy tax directive, a European directive with which we must comply regarding minimum levels of taxation that must apply to diesel.
There are also constraints in respect of VAT. We have made changes in that regard but these must be consistent with EU law and the Government has gone as far as it can at this point with those measures. We have introduced a range of measures we believe will help, although we are not for a moment suggesting they go all the way or fully offset the costs people are facing. Unfortunately, the tragic war in Ukraine imposes a cost on all of us across society. The Government has done its best to respond but we accept we cannot fully offset the additional costs people are facing.
It must be acknowledged that there have been a number of interventions. As the Minister has said, they can never go far enough to address fully the real crisis that is out there at the moment, but a number of targeted measures have been undertaken, including the VAT cut on gas and electricity, excise reductions and the additional lump sum for a certain cohort of fuel allowance recipients. I will follow up on that. I am probably straying into the territory of the Department of Social Protection or even the Department of Finance, but is there something we could do in respect of the household benefits package? Every year, a certain proportion of benefits across society are not claimed. These amount to something like £15 billion in the UK. I imagine there are also a number of people here who do not fully avail of their social welfare entitlements and additional supports. Perhaps some kind of campaign could be launched to advise people as to their entitlements.
We had a very significant social welfare package in the previous budget, totalling well in excess of €500 million. As the Deputy will know, this involved increases in core weekly rates and improvements in the living alone allowance, the carer's allowance, parent's benefit, the working family payment, the back-to-school clothing and footwear allowance, the qualified child increase, and a number of other programmes administered by the Department of Social Protection including, for example, a pilot programme of hot school meals. A range of measures were introduced by the Department.
It will always be the case there will be people across society who are not aware of their entitlements and the supports they can avail of. We do our best as a Government. The Department of Social Protection has a very easy to use website. The Citizens Information Board has offices throughout the country providing information to people. There is also the advocacy work that we, as public representatives, do on an ongoing basis. The voluntary sector and all of the bodies that support people who are at risk of poverty are also constantly highlighting different schemes. However, we have been somewhat surprised by the fact there has not really been an increase in the number of people applying for supplementary welfare in the form of the exceptional needs payment. We expected a greater uptake given fuel prices. Public representatives could perhaps highlight that service, which is there to support people who are in genuine need and who are facing very difficult choices at this time.
That is a point I was going to mention. I do not believe many people are aware of the discretion their local welfare officer may be able to show them. There is a role for us and a role for Government. As the Minister said, the Citizens Information Board is always very good, helpful and informative. However, some kind of campaign is warranted. People are feeling the pinch and now would be a good time for such a campaign.
If I may again stray across the water to the UK, a similar debate is ongoing with regard to addressing the cost-of-living crisis there. I do not agree with the idea but I know that privatising the UK's passport office is being looked at. There is also discussion of deferring Ministry of Transport tests, the MOT, for a year or two. Again, I obviously do not advocate such a measure but the UK is looking at all interactions the state has with the taxpayer and the citizen. It may be worth scrutinising such interactions here, such as those relating to the haulage sector that Deputy Cahill mentioned, to see if there is anything that we, as a Government, can do with regard to reducing costs, waiving fees or streamlining processes to make things easier for people and businesses.
I agree with the Deputy's point regarding the exceptional needs payment. It is there to support people who genuinely need assistance. Nobody should be afraid to reach out to his or her local community welfare officer. As a Government, we will do the best we can to promote and highlight the fact this service is there because, at a time when many people are undoubtedly under significant cost-of-living pressures, we are not seeing an increase in the number of applications coming in, which is a surprise.
We are very anxious to reduce the costs families face. I highlight the improvements to the national childcare scheme. We have extended the universal subsidy, which will kick in for older children in the autumn. As the Deputy will know, we have provided very significant additional core funding of more than €200 million in a full year, which is the largest injection of funding into the childcare sector for many a year. That will greatly assist in ensuring those working in the sector are paid an appropriate wage and have good career opportunities and will also assist parents in dealing with the bills they are facing. That is one area that is a key priority for Government and one in which we can help people to reduce the costs they face.
Before we move onto the next question, I welcome the members of the Longford branch of the Irish Wheelchair Association to the Gallery.
