Oireachtas Joint and Select Committees

Wednesday, 16 July 2014

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Pre-Budget Submissions: Discussion (Resumed)

2:40 pm

Ms Michelle Murphy:

That is the issue of replacement rates and it is a very specific issue for a small group of people. The majority of people who are on the live register are not entitled to rent supplement and those secondary benefits. In the case of the people who are, especially people with families, we must examine a way of tapering those benefits so that one tapers their withdrawal in terms of the income level. It is a huge cost to a person if they take up a low-paying job and all of those benefits are withdrawn. One must think of the other costs they have. It is not just their earnings but the other people who are dependent on them. Obviously, a more tapered withdrawal system would be of huge benefit. There is progress now in terms of the housing assistance payment and changes to the rent supplement system so it is to be hoped we should see some progress in that regard and that should make a difference as well.