Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

Senators will be aware that the work of the Vincentian MESL Research Centre, which is sponsored by my Department, is an assessment of the minimum income needed to partake in everyday life. The work of the MESL research centre also highlights issues that may be better solved with greater access to services, rather than increases in income. In this regard, having access to secondary benefits such as medical cards and supports in the areas of housing and childcare has a huge impact on well-being. Therefore, using the MESL as a benchmark for the level of social welfare payments alone can present difficulties. For these reasons, while not used as a benchmark in and of itself, the work of the Vincentian MESL Research Centre at the Society of St. Vincent de Paul is, and will continue to be, a valuable input into our policymaking process.

On an annual basis, my Department already assesses the social impact of the annual budget process, including in recent years the impact of once-off measures. I give the Senators a commitment that we will publish, in quarter 1 of 2024, a detailed social impact assessment of budget 2024, including the main tax and welfare measures, using the ESRI’s SWITCH microsimulation model, which will set out the poverty alleviation impacts of the budget measures for various cohorts and family types.

For those reasons, I do not propose to accept these amendments. I understand why the Senators have to put amendments in this way but I would prefer not to put reports into legislation. The ESRI has said that the budget protects those on the lowest incomes the most. This matter has to be looked at it in the round, in terms of the core increases to weekly payments and the lump sums. The €12 increase in the core weekly payments will take effect from January. Over the last two budgets alone, we have increased the weekly payments by €24. In recent years, a €3 increase used to be the norm, or maybe there was no increase at all. A €24 increase over the last two years is, therefore, a substantial amount of money.

This year's budget has to be looked at in the round, taking into consideration the combined effect of the lump sums and the increase in the weekly rates. For example, an old-age pensioner who lives alone will get the funeral allowance; the €200 living alone lump sum; the €300 fuel allowance lump sum; a double payment at Christmas; a double payment in January; and, on top of that, a €12 increase in the weekly payment. That adds up to an extra €1,700 annually and approximately €32 extra per week. A carer will get the two double payments at Christmas and in January, the €400 carer's lump sum and the €12 increase in January, which works out at about €1,500 extra over a whole year or approximately €30 extra per week. That figure will be much higher for those with children because they will also get the €100 qualified child lump sum and the double child benefit payment. Somebody on a disability allowance who lives alone will receive an extra €2,020 over the year, which works out at about €39 extra per week.

As I said, the work of the Vincentian MESL Research Centre at the Society of St. Vincent de Paul will continue to be a valuable input to our policymaking process. On an annual basis, my Department assesses the social impact of the annual budget process, including, in recent years, the impact of once-off measures. That does not include the lump sums for fuel allowance and electricity credits. We continue to monitor this matter closely.