Oireachtas Joint and Select Committees

Wednesday, 2 February 2022

Committee on Budgetary Oversight

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

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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Is that the best way to deal with that? Looking at where we are with inflation, there is another point I want to talk about on the average rate of inflation and the impact that has on lower-income deciles and households. If we were to keep pace with what the Central Statistics Office, CSO, is reflecting about price increases there would have to be an extra €5, €6 or €7 added to the core social welfare payments above what was agreed in budget 2022. The inflation we are experiencing this year is more than the inflation we have experienced in the last 12 years combined. Given we are in a situation that may be temporary, though it may last a year or two, is the best way to address that through discretionary measures whereby you would have a temporary top-up? This is as opposed to baking it into the permanent social welfare increases in a budgetary cycle.