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

I am acutely aware, as everyone is, of the pressures faced by households given increases in the cost of living. Thankfully, this Government's management of the Irish economy means that even in the face of challenging international conditions, we have the capacity to respond, and we have responded. Last September, I announced the largest social protection budget in the history of the State comprising measures worth almost €2.2 billion. This budget did not take the approach of simply increasing payment rates in line with inflation. Instead, it provided a combination of eight lump-sum payments and a €12 across-the-board increase in weekly rates, which was the largest such increase since the mid-2000s. In addition, it continued the practice adopted in recent years to provide targeted, above-inflation increases in key payments. As the Deputy will be aware, we have particularly focused in recent budgets on increasing qualified child payments, fuel allowance payments and living alone payments, as well as the income thresholds on working family and lone parent payments as these have been shown to have the greatest impact in reducing poverty.

Independent analysis by the Economic and Social Research Institute, ESRI, found that budget 2023, in following this approach, delivered for lower income households, which were found to be better off than if they had just received an inflation-indexed increase in basic rates. This analysis indicates that a simple, inflation-adjusted increase in rates is not necessarily the best approach and, in fact, that targeted measures can be more effective in alleviating poverty and addressing cost-of-living pressures. Accordingly, as Minister, I will continue to examine the evidence produced by organisations such as the Vincentian Partnership for Social Justice to inform how the social welfare budget package should be constructed. As the Deputy may be aware, the work of the Vincentian Partnership is funded by my Department.

The Deputy may also we aware that the Department runs a pre-budget forum every year at which stakeholders and advocacy groups, including the Society of St. Vincent de Paul, Barnardos and others, have an opportunity to meet me and present their proposals for measures they would like to see included in the budget. This year's forum is being held on 19 July. Decisions about budget 2024 will be made in the coming months and will take account of the analysis and recommendations put forward by these stakeholders. It goes without saying that, in working with my ministerial colleagues, I will seek to respond to changes in the cost of living. We have not been found wanting so far and we will not be found wanting in the future.

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