Dr. Tom McDonnell:

The other point is that it is difficult to directly compare incomes North and South because the cost of living is different. Northern Ireland has a lower level of productivity, which tends to go hand in hand with a lower cost of living, for various reasons. Part of the convergence has to involve the convergence of the two economies in terms of productivity and economic outcomes. In that context, the convergence on the social welfare side starts to make more sense.

If there was to be one principle that could be followed in terms of the destination North and South, it would be a consideration of whether welfare rates are adequate and how we establish what "adequacy" means for certain family types. In the South, but also in the North and indeed in the UK, overall, a technical exercise needs to be undertaken to identify the cost-of-living pressures for certain family types. Welfare payment rates should then be based on the outcome of that exercise to ensure they are evidence-based. This would be instead of a €5 or €10 increase annually, as there is in the South. There is even less of a debate in the UK in this regard. As the cost-of-living differentials diminish over time, this would also imply the minimisation of social welfare differentials over time. Again, though, this would likely be a 20-year process.