Oireachtas Joint and Select Committees
Wednesday, 21 January 2015
Joint Oireachtas Committee on Education and Social Protection
Impact of Social Protection Payments on Income Distribution: Discussion
1:00 pm
Professor Dorothy Watson:
The general question of how the social protection system could be improved is a big question. One feature of the Irish social protection system that has come up in the discussion is a heavy reliance on means tested payments so that if the person starts earning income the social transfer is reduced right ay. That is a good strategy if the emphasis is on getting the best value for money in terms of targeting it towards the people who are least well off, who have no income from other sources.
It begins to create difficulties with the transition from being dependent on welfare to being in employment. The significance and implications of means testing for the transition period needs some attention. It comes from the general concern with household joblessness.
I am not familiar with the pension issue, which sounds very intricate and complicated. I thought Ireland could apply for a transfer of funding from the country in which the person made the 40 years' worth of contributions. Given that I am not sure about that, I am better off not commenting.
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