Paul Murphy (Dublin South West, RISE)
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75. To ask the Minister for Employment Affairs and Social Protection if she will increase social welfare rates in line with increases in the cost of living; and if she will make a statement on the matter. [24512/22]

Paul Murphy (Dublin South West, RISE)
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In the most recent budget the Minister increased social welfare rates by a measly 2.5%. Over the past year we have seen inflation at 7% or more. Does the Minister intend to immediately increase social welfare rates to at least keep pace with the spiralling cost of living so that those on low fixed incomes are not compelled to fall deeper and deeper into poverty?

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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On an ongoing basis, and as part of the normal budgetary cycle, my Department actively monitors key economic indicators and also takes account of research data, including data on the minimum essential standard of living from the Vincentian Partnership for Social Justice. The social impact of budget measures is also assessed using the SWITCH model developed by the ESRI.

It is through this evidence-based approach that, over the past ten years, budget measures have both exceeded inflation and have also been targeted to support those most at risk of poverty. This is evident in the recent results of the survey on income and living conditions which showed welcome reductions in the number of people at risk of poverty or deprivation.

Having said that, I am very aware that, mainly due to external factors, the recent increase in consumer prices, especially the increase in fuel and other energy prices, has exceeded even the highest forecasts. In response the Government acted early to address these challenges. To help mitigate the effects of these rising costs, the Government announced a package of measures in February, which will have a positive impact on the incomes of all households in the country. This package included a lump sum of €125 to all households in receipt of the fuel allowance payment which was paid to social welfare recipients in March. This week, a further lump sum payment of €100 will be paid to these households. Taken together with the €5 increase in fuel allowance introduced as part of budget 2022, this means that low-income households will see an increase of 55% in fuel allowance support provided during this fuel season compared with last season. In conjunction with the electricity costs emergency benefit payment, such households will receive over €600 in additional energy supports this year. Deputies will also be aware of the measures taken by the Minister for Finance to reduce duties on fuel and retain the low level of VAT on hospitality services. The Minister for Transport has also reduced public transport fares by 20%.

These measures are in addition to others introduced as part of budget 2022, including the largest social welfare budget package in 14 years, and are more expansive than measures introduced in most other countries.

Paul Murphy (Dublin South West, RISE)
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The Government likes to talk a lot about the cost of living being caused by factors outside its control but let us look at the factors that are in the Government's control. Social protection is set at poverty levels. That was the case before the huge inflation we are seeing but it is getting worse. The crumbs being offered to people are not good enough. When their bills are soaring by thousands of euro giving them a few hundred euro is not enough. In 2021, 19% of people unable to work due to long-standing health problems were living in consistent poverty. That was before this year's price increases. The poverty line in 2021 was €286 per week, while the standard rate of social welfare is only €208. The cost of housing was out of control before Covid or the invasion of Ukraine. Some 59% of people dependent on rent subsidies such as HAP were at risk of poverty. What is the point of paying out almost €1 billion a year to landlords if that is the end result?

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Data from SILC in 2021 are the official poverty data for Ireland. The survey was undertaken in 2021 and refers to 2020 income. I will give the Deputy a few figures from it. The rate of consistent poverty reduced from 4.7% in 2020 to 4% in 2021. The number of people at-risk of poverty reduced from 13.2% to 11.6%. The deprivation rate reduced from 14.3% to 13.8% in 2021. Social transfers resulted in a reduction in the at-risk of poverty rate from 38.6% to 11.6%. In 2021, Covid-19 income supports reduced the at-risk of poverty rate from 19.9% to 11.6%. Consistent poverty among children reduced from 7.2% in 2020 to 5.2% in 2021 and consistent poverty among lone parents reduced from 19.3% to 13.1%.

Paul Murphy (Dublin South West, RISE)
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I will give the Minister some other statistics from the same report. After paying their rent, one in two people living in local authority housing is at risk of poverty. It is even worse for those reliant on HAP or rental accommodation scheme, RAS, of whom 59% are at risk of poverty after paying their rent. More than one in ten of the population is living in enforced deprivation. Almost one person in two of the population is not able to afford to replace worn-out furniture. Almost one in ten cannot afford new clothes. Almost one in ten cannot afford to have family or friends over for a drink or to meet for a meal once a month. That was before the price rises kicked in and affected people. Unless the Government acts now to raise the pitiful levels of social welfare payments, there will be a huge crisis for these people. These are precisely the people who are making the choice between heating or eating. It is why the cost-of-living coalition has come together and is organising our first protest at 1 p.m. this Thursday outside the Dáil. It will be the first protest of many to build a mass movement on the streets to force action from the Government on this issue.

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Government has taken significant action which I have already listed. It includes a lump sum of €125 and a further lump sum payment of €100 this week; a €200 energy credit; excise reductions on fuel; public transport fare reductions of 20%; and the retention of lower VAT levels in the hospitality sector. On top of that, we introduced the largest social welfare package in 14 years last October. All of this has been done on the back of over €9.2 billion being paid on the pandemic unemployment payment over the past two years. Yesterday, we had record export figures. Child poverty is falling. The number of people at risk of poverty is falling. Incomes are up and inequality is down. The European Commission forecasts that Ireland will have the second highest growth in the EU this year. The unemployment rate is lower now than it was before the pandemic. The number of people on the live register is at its lowest for over a decade. We want to do more, however. My Department, along with the Minister for Further and Higher Education, Innovation, Research and Science, is developing more apprenticeships and training and education courses because the way out of poverty is employment.