Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputy for raising the issue. The Government has committed to applying a benchmarking and indexation approach to State pension rates. The roadmap for social inclusion also contains a commitment to prepare a report for the Government on the potential application of the benchmarking approach to other welfare payments. I understand that my officials are working on that. Significant work has been carried out to develop a methodology for benchmarking and indexing State pension rates. This proposed approach has been endorsed by the Pensions Commission. In addition, the Commission on Taxation and Welfare will examine the social welfare system more generally as part of its work, and will submit its report to the Minister for Finance not later than next June.

The Department has used the MESL research as a key input into the consideration of budget options in recent years. I value the insights that the data provide. The research recognises that increasing income supports is not the only means by which individuals and families can meet the minimum essential standard of living. Improved services such as the extension of GP visit cards for children, as well as the affordable childcare scheme, can result in significant reductions in the minimum income standards needed by households. In this respect, the MESL relates to issues wider than social welfare issues. We do not believe it would be appropriate to carry out a review in isolation.

I assure the Deputy that my Department will continue to support the MESL work as it is done for many years. In fact, we funded the Vincentian Partnership for Social Justice to produce a report on the issue. We take it very seriously and we examine it. The research the partnership produces and its recommendations have underpinned our budgets over many years. That is why we introduce targeted measures. If we implemented all the recommendations in the MESL report, it would cost €2.7 billion. We take advice from a number of different sources, such as the Central Statistics Office, the Economic and Social Research Institute, as well as the Vincentian Partnership for Social Justice.

We have used the MESL research to inform policy. For example, the higher rate of payments for children aged 12 years and over was introduced as a direct result of this research. In addition, targeting resources at vulnerable populations at higher risk of poverty, for example, pensioners living alone, was also informed by the MESL research. To bring all welfare payment rates up to the MESL would cost an additional €2.7 billion. The Deputy raised the question of the number of people who would benefit.

We expect the figure to increase from 365,000 at a minimum to 400,000 people next year. This is with regard to the fuel allowance. It will bring in many more people. The Deputy will appreciate that we always like to do more. This has been the biggest social welfare budget in 14 years. We will continue to work on it. The ESRI report stated the four lowest income deciles will benefit from the tax and welfare measures announced in the budget with the largest gains in the bottom two deciles. The ESRI analysis shows that the increase for qualified children, the living alone allowance and the fuel allowance will particularly benefit groups at higher risk of poverty. We have many reports and we do not need to prepare another one.

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