Mr. Sebastian Barnes:

This is the key issue now. The Deputy is right about the cost of supporting vulnerable households. He has given a good sense of the many challenges existing in society. The cost of supporting the most vulnerable groups and households, including those with the lowest incomes and those with various challenges in their lives is going to increase and this is what the Government needs to manage. So far, it has mostly focused on temporary measures that may be warranted because the increase in this regard that has brought about higher energy prices has been relatively recent. Eventually, over time, it would be natural for welfare rates to increase and for supports to be adjusted in the way referred to.

An important point, is that the Government cannot help everyone in this situation. That would not be a sustainable approach and it would not make sense. The Government, as we have said, is facing this balancing act between protecting the economy and protecting those groups that are vulnerable and not putting a great deal more money into the economy when inflation is already high and demand is strong. The best way of doing this is by targeting such protections at those who are the most vulnerable. A big challenge politically is that a wide section of the population is under some pressure because of these energy and food prices. It can be hard to target protections in this kind of environment, because some people will not benefit much or at all from Government measures if they are targeted. It is a challenge for the Government to communicate information on this scenario and then to calibrate its response.