Dáil Éireann Debate, Tuesday - 24 May 2022
168. Deputy Paul Murphy asked the Minister for Public Expenditure and Reform if his attention has been drawn to new research by an organisation (details supplied) which shows that the value of the social wage for full-time workers in Ireland is exceptionally low by European Union standards; if he has considered this research; and his views in relation to a social wage in Ireland. [25930/22]
Amharc ar fhreagraAs the Deputy is aware, my Department is responsible for policy on allocating public funds across each area of Government spending and ensuring that expenditure is managed in line with these allocations by Departments. In this way, officials from my Department engage with their counterparts on proposals in relation to a variety of expenditure measures including in relation to social welfare, housing, and childcare. However, queries in relation to specific policy are in the first instance for the relevant Minister who has policy responsibility in that area.
From an overall expenditure perspective I would highlight the level of expenditure provided by the Government to support public services and individuals is €87 billion in 2022. This expenditure includes additional provision to support individuals and the economy to address the challenges of Covid as we emerge from the pandemic.
Regarding Social Protection supports, investment in the sector for 2022 is expected to reach €23.3 billion, including amounts allocated for Covid supports.
Looking at the impact of Social Protection expenditure, I have been advised by the Department of Social Protection of the following in relation to the impact of the Pandemic Unemployment Payment and Wage Subsidy Scheme Covid-19 supports, and social transfers more generally, on the At Risk of Poverty Rate. These Covid -19 supports had a significant impact on the At Risk of Poverty rate. The At Risk of Poverty rate for 2021 was 11.6%. This would have been 19.9% without these Covid-19 supports.
These Covid-19 supports also had a positive impact on the median household disposable income in SILC 2021. The median household disposable income in 2021 of €46,471 increased by 5.8%, but would have decreased by 6.2% without the Covid-19 income supports.
Including social transfers show the wider impact of the system on the At Risk of Poverty Rate. Social transfers include income from Department of Social Protection (DSP) sources such as jobseekers related payments, state pension, family and children related allowances, as well as other state supports such as education related allowances and housing allowances.
|
At Risk of Poverty Rate % |
2021* |
2020 |
|
Before Social Transfers |
38.6% |
36.5% |
|
After Social Transfers |
11.6% |
13.2% |
The 2021 SILC data show that social transfers performed well in reducing the at-risk-of-poverty rate, from 38.6% before social transfers to 11.6% after social transfers. This equated to a poverty reduction effect of 70% in 2021.
In comparison, the 2020 SILC data show that social transfers performed well in reducing the at-risk-of-poverty rate, from 36.5% before social transfers to 13.2% after social transfers. This equated to a poverty reduction effect of 63.8% in 2020.
* Up until 2019 the CSO used the ESSPROS definition of 'social transfers'. This means that occupational pensions, redundancy and retirement lump sums and social transfers from other countries were classified as social transfers. From 2020 we have moved to a national definition of social transfers, which includes transfers from Department of Social Protection (DSP) sources such as unemployment related benefits, state pension, family or children related allowances, etc., as well as education related allowances and housing related supports, but not occupational pensions or redundancy or retirement lump sums from employers.
Regarding housing investment the Housing Programme has more than tripled since 2016, from just under €1 billion to over €3.6 billion in 2022. The Government’s continued commitment to tackle the housing crisis is evidenced in the funding allocated to the Department of Housing in the revised National Development Plan. This is an unprecedented level of funding for housing provision. In 2022 the Department of Housing will receive a record c. €6 billion in Exchequer funding.
Housing for All commits to investing unprecedented amounts of funding to expand the State’s role and achieve the Government’s objective of delivering sustainable, good quality housing to purchase or rent at an affordable price. The Plan targets the delivery of over 300,000 new homes by 2030. Including over 90,000 social homes and 54,000 affordable homes. This is the most ambitious social and affordable housing build programme in the history of the State.
In relation to childcare the Government recognises that there are significant challenges facing the childcare sector including the costs of childcare for parents. In response to this the Government has continued to increase the level of investment in the sector. Since 2015, the levels of State support and investment in Early Learning Care and School Aged Care has increased by 166%, rising from €270 million in 2015 to €719 million in 2022.
