Dáil Éireann Debate, Tuesday - 17 May 2022
111. Deputy Sorca Clarke asked the Minister for Social Protection if consideration will be given by her Department to a once-off cost of living increase for social welfare recipients considering the increased costs of fuel and the rising costs of living. [24649/22]
Amharc ar fhreagra147. Deputy Dara Calleary asked the Minister for Social Protection her Department’s strategy to make sure that social protection payments keep pace with the higher cost of living; and if she will make a statement on the matter. [24667/22]
Amharc ar fhreagraI propose to take Questions Nos. 111 and 147 together.
I am very aware that, mainly due to external factors, the recent increase in consumer prices, especially the increase in fuel and other energy prices, has exceeded even the highest forecasts.
The Government acted early and did not await a further budget cycle to address these challenges. 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.
This package included a lump sum of €125 to all households in receipt of the Fuel Allowance payment, which was paid to social welfare recipients in March. A further lump sum payment of €100 is being paid to these households this month.
Taken together with the €5 increase in Fuel Allowance introduced as part of Budget 2022, this means that low-income households will see an increase of 55% in Fuel Allowance support provided during this Fuel season when compared to last season.
A recipient household which would have received €735 in fuel season 2020/2021 would see an increase of €404 to €1,139 in Fuel Allowance payments in fuel season 2021/2022. When taken in conjunction with the electricity costs emergency benefit payment, such households will have received over €600 in additional targeted Government supports over the course of this fuel season. €600 is the equivalent of over 18 weeks' additional fuel allowance, at current rates.
The increase of €10 to the weekly income threshold of the Working Family Payment was also brought forward, taking 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. Targeted, evidence-based measures such as increases to Fuel Allowance, the Living Alone Allowance and Qualified Child payments have ensured the largest increases are aimed at the most vulnerable.
The Government will continue to monitor this situation closely.
