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

On an ongoing basis and as part of the normal budgetary cycle, my Department takes careful note of trends in price and wage levels and takes account of research data, including that of the minimum essential standard of living from the Vincentian Partnership for Social Justice. The social impact of budget measures is also modelled using the SWITCH model developed by the Economic and Social Research Institute, ESRI. It is through this approach that, over the past ten years, budget measures have exceeded inflation and have been targeted to support those most at risk of poverty. Having said that, I am aware that, due to the geopolitical situation, the increase in consumer prices, especially the increase in fuel and other energy prices, has exceeded even the highest forecasts for price increases. That is why this Government did not await a further budget cycle but acted early.

To help mitigate the effects of these rising costs, the Government announced a package of measures in February that will have a positive impact on the incomes of all households in our country. This package will cost in excess of €500 million. These measures include an additional lump sum payment of €125 to all households in receipt of the fuel allowance payment, which was paid last week at a cost of approximately €49 million. This means low-income households will see an increase of 41% in fuel allowance support provided during this fuel allowance season compared with last season. When added to the electricity costs emergency benefit payment of €200, which will be paid to each household in April, the combined value is €325, which is the equivalent of just under ten weeks of fuel allowance payment. The increase of €10 to the weekly income threshold of the working family payment is also being brought forward. This measure will now take effect from early April 2022 rather than from June. These measures are in addition to those introduced as part of budget 2022, which included the largest social welfare budget package in 14 years. In January, around 1.4 million people received a €5 increase in weekly payments, and more if they had dependants.

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