Dr. Claire Keane:

Internationally, if there is only one benefit type index, it tends to concern pensions. Pensions, more often than other welfare benefits, get indexed in line with wage growth, and other benefits may be increased in line with prices. That is a decision that has to be made by policymakers. In Ireland, State pension rates are already higher than payments such as the unemployment payment. If we continue to index one by a higher amount, it will continue to grow out of kilter with the others. The argument has sometimes been that people on pensions find it harder because they cannot just go back to work or try to earn more money if inflation is high. That was the argument. It has mainly been a financial argument in that if all welfare rates are increased by the same amount, it will cost more than if certain benefits only are increased. In this regard, a decision has to be made. I believe the indexing of all welfare rates should happen, but it may be that a political decision will need to be made that only certain benefits may be increased in a particular year if it is going to cost too much to increase all of them.