Mr. Niall Egan:

The Deputy highlighted and is right that IQAs of pensioners are reducing. We also imagine that trend will continue. The changes we made to the contributory State pension and recognition of periods of care will have a significant impact on that over time as well. We expect more people will qualify for the contributory State pension. There will be less non-contributory State pension and less increase for qualified adults on contributory State pension on foot of those pension changes we introduced at the end of last year that took effect from January.

The Deputy talked about the incentive effect and someone working for €360 a week on jobseeker’s allowance. If my sums are correct, that household will see their income rise from a full-time jobseeker’s payment of €386 on the basis of no child with the additional income, leaving aside reducing for the means the Deputy highlighted, to an increase up to €566. Therefore, there is a net benefit. Roughly around 45% to 48% of household income has increased. I accept the points the Deputy made and he is absolutely right. When we look at jobseeker’s payments, we look at replacement rate. Across the OECD, we should be looking at a replacement rate ratio of around 70%. That is typical. Anything above that and you are into disincentives. It is higher than the percentage the Deputy articulated based on the research from the OECD, and in the case the Deputy highlighted, it is actually below that 70% threshold.

That said, looking at people on the live register, we have seen consistently since Covid, and this trend was before Covid as well, a reduction in people availing of jobseeker's support and taking up employment and a proportionate reduction in casual jobseekers. The policy objective of Government is to move people from an unemployment support and the household into employment, and we are seeing that. It is a balance. If you start incentivising part-time employment significantly, there is a risk you could trap people unintentionally in receipt of a jobseeker's payment. I know that is not the intent the Deputy is highlighting. We will take on board the point the Deputy has highlighted. That applies to the vast majority of social assistance that is means tested.

I will have to revert back to the Deputy on the rural social scheme. The top-up payment is €27.50 a week. It has increased from the €23 the Deputy highlighted but I take the point the Deputy has made. I am not familiar with the change in the rule the Deputy highlighted. I will have to revert back after speaking about that to colleagues who have responsibility for the rural social scheme, but I will also keep that-----