Oireachtas Joint and Select Committees

Wednesday, 9 February 2022

Committee on Budgetary Oversight

Indexation of Taxation and Social Protection System: Discussion (Resumed)

Photo of Aindrias MoynihanAindrias Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I thank Mr. Johnson for his detailed responses and the overview he provided earlier. Unfortunately, I missed part of the discussion but quite a bit of information has been provided and some of the questions I wished to put to Mr. Johnson have been partly answered. When one starts indexing, where does one draw the lines or how far does one go? I note the UK has drawn a line at the pension age and treated people differently or treated payments differently depending on whether they are for younger people or older people. Is it only on the core social welfare payment for people under the pension age or does it also extend out into indexing in taxation or in other benefits such as qualification or thresholds for housing or medical cards and so on? How wide is it? How did the UK decide on that pension threshold? Why were the lines drawn where they were drawn when indexing was being introduced? Mr. Johnson may have answered my next question already. Does the UK look forward to wages or back to inflation when indexing? How was that decision reached?

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