Oireachtas Joint and Select Committees

Wednesday, 16 October 2024

Select Committee on Social Protection

Estimates for Public Services 2024
Vote 37 - Social Protection (Supplementary)

9:30 am

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I thank the Deputy. On the first issue regarding the poverty assessment, the CSO measures consistent poverty. As per the CSO's analysis, one-off measures do reduce consistent poverty and those at risk of poverty. Consistent poverty as measured by the latest SILC survey is at its lowest ever level, at 3.6%. The at-risk-of-poverty level would have been at 13% without the one-off measures. With the one-off measures it is now at 10.6%. The Deputy referred to Social Justice Ireland. In its pre-budget submission and its post-budget analysis, Social Justice Ireland called for an increase of €25 per week in all weekly social welfare payments. This would cost approximately €1.9 billion. However, the total Department of Social Protection budget package was worth €2.6 billion, with €1.2 billion for social welfare measures for next year and €1.4 billion for the cost-of-living measures, the lump sums we are paying out now. If I adopted what Social Justice Ireland was calling for, what measures or cost-of-living payments would I not have included? There are choices to be made here. Looking at the package of measures I introduced, a lone parent family with two children will experience an increase of €2,424 in their income. A carer caring for one of their two children will experience an increase of €2,906 and a person with a disability living alone will see their income increase by €1,778. These increases are all far more than what a €25 weekly increase would have delivered these individuals. Social Justice Ireland also called on us to ensure that weekly social welfare payments are benchmarked to movements in average earnings. Benchmarking already provides an input to Government decisions on budget measures. The smooth earnings approach ensures the State pension contributory rate keeps pace not just with the average earnings but also with inflation. I have to add that Social Justice Ireland also welcomed the cost-of-living supports and the increase in the child support payments. It welcomed the adjustments to the carer's allowance, fuel allowance, domiciliary care allowance and working family payment. All of these measures were only possible due to the overall package of measures that I introduced. Were a €25 social welfare increase announced, most of these measures would not have taken place.

The Deputy referred to disability. We have announced a number of changes under the budget to address the additional cost of disability, including increases to personal payment rates for people on long-term disability and lump sum and double bonus payments. Indecon's Cost of Disability report did not actually recommend a cost-of-disability payment. It found that the additional costs of disability run across a number of areas of expenditure, including housing, health, education and transport. The report concluded that a whole-of-government approach is required to address the cost of disability. As the Deputy knows, I published the Green Paper. There was feedback from it and I said I would not proceed any further with it. I have to say there was a lot of consultation. The Taoiseach has also set up a Cabinet committee on children, education and disability. Any reform of disability payments, including a cost-of-disability payment, will now be considered as part of a broader review of disability matters on a whole-of-government basis. There is feedback. We will be feeding the information collected during the Green Paper process into that Cabinet committee. The Department of Children, Equality, Disability, Integration and Youth is also co-ordinating the development of a new national disability strategy on a whole-of-government basis. The cost of disability will be addressed again through that strategy.

The Deputy raised the issue of carers. There has been a lot of talk about this. I was very pleased to announce the increase in the income limits. It is only last year that I increased them, as the Deputy knows, and those income disregards kicked in from July of this year. In fairness I have pushed this more than anybody. I have met directly with carers.

Like Deputy Donnelly, I see at first hand the challenges carers face. Of course, parents of a child with severe disabilities particularly come to mind when you see what they have to provide. It is 24-7 work for some parents.

I am the first Minister in 14 years to increase the income disregards. They have almost doubled since 2020. The carer's support grant is at its highest level and is not means tested. I brought carer's benefit to the self-employed for the first time. Self-employed people can now qualify to apply for carer's benefit. Carer's allowance is now a qualifying payment for the fuel allowance. Domiciliary care allowance, which is not means tested, was increased by €50 during my term as Minister. We have also provided for a pension for carers. I have made considerable headway in this regard. We are on a journey and I am aware there is more to do.

The income limits were increased in July 2024, which is only three months ago. That is already having a positive impact. There is a process we must go through. The Department will engage with carers on the increased limits and that work starts now. We have to engage with them. There is work to do. The disregards have to be increased and all the payments, therefore, have to be reassessed. While we work close with Family Carers Ireland, it is not quite as simple as it has made it out to be. There is a bit of work to be done.

More than 90% of carers are already on the maximum rate of carer's allowance. I cannot pay carers for the work they do. The Department of Social Protection supports people’s income for those who are less well-off. I have, however, set up a working group to look at all of these issues. It will report back before the end of the year. I fully understand Deputy Donnelly’s point that supporting carers to do the work they do to keep people at home saves the State and the Government money. While I agree with the Deputy, not all of this falls within the Department. There is a wider picture to look at and that is why I have set up the working group. This issue was moving back and forth between the Department of Health, my Department and various other Departments. There are different players involved. That is why I said we would bring them all into one room to try to find a solution. To be fair, we have done a lot for carers, but it is a journey and we will continue on that journey to support them because we all recognise the huge contribution they make.

I believe I have covered everything.