Dáil debates

Tuesday, 23 May 2023

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Social Welfare Eligibility

10:30 pm

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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74. To ask the Minister for Employment Affairs and Social Protection her views on the fact that adult dependants were excluded from the recent €200 cost-of-living bonus payment; and if she will make a statement on the matter. [24661/23]

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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A week or two after the recent cost-of-living bonus payment was made to families, I started getting calls, primarily from pensioners, who were shocked and surprised that they had not received the €200 cost-of-living payment. These people are adult dependants on a social welfare payment. This seems grossly unfair because they were given to believe they would qualify as they get the Christmas bonus. Those who are affected by this are predominantly from low-income households.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Last September, I announced the largest social protection budget in the history of the State, providing more than €2.2 million in supports. This was in recognition of the pressures facing households due to the increasing cost of living. In addition to the substantial package of supports provided as part of the budget, in February I announced a further €410 million spring bonus package of social protection measures. The €200 cost-of-living bonus payment made in April is one of a range of these supports. This €200 lump sum was paid for each eligible person who had an entitlement to a primary payment in their own right. The payment was made in the week commencing 24 April to more than 1.2 million people in receipt of long-term social welfare payments at a cost of approximately €260 million.

The Government provided the €200 bonus last month as part of an overall package of measures that has been provided throughout 2022 and into this year. This programme of measures includes both broad measures, such as rate increases, and targeted measures, which support certain groups in society. Delivery of these measures is continuing throughout 2023, with upcoming supports in the programme targeting children through the delivery of measures in respect of child benefit, the back-to-school clothing and footwear allowance and school meals as we come into the summer.

My Government colleagues and I have clearly stated we are keeping the cost of living under review and have acted decisively, as necessary, time and again.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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I thank the Minister for what was a very substantial and excellent answer to a different question. It certainly did not answer mine, which related to dependants who did not receive the cost-of-living bonus payment. She offered nothing regarding her views on that or the rationale for the decision. The precedent in respect of bonus payments, insofar as there are any, relates to the Christmas bonus, which has been paid for the past four or five years. There was a period when it was not paid but it was also paid prior to the recession. Throughout that time, adult dependants got the Christmas bonus. There is no precedent for adult dependants not receiving a bonus payment.

These people were led to believe, in the initial discussions that led to the payment, as I understand it, that they were to receive it. They had no sense they were not going to get it. Often, it is six of one, half a dozen of the other as to whether an elderly couple will go for two payments, or one as an adult dependant on another payment. The qualifying conditions do not vary greatly. People would have been expecting the payment and relying on it to put food on the table and pay bills. Why were they not included and why did they not get it?

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I think we are talking about two different issues. A double payment and a lump-sum payment are not the same. Qualified adults who are not in receipt of a primary payment in their own right did not receive a lump-sum payment, but the October double payment and the Christmas bonus were both double payments, so a person in receipt of the primary payment received double his or her overall weekly payment inclusive of any additional payments for qualified adults.

The €200 spring payment is different. It is not a double payment. It is an extra €200 lump sum added to a person's primary payment. For example, for someone on a long-term jobseeker's payment, the standard jobseeker's payment is €220 while the qualified adult rate is €146. That household received one €200 lump sum payment. The two individuals do not receive two separate €200 lump sum payments. It is important to understand that my Department makes its payments on the basis of the primary payment so for example a pensioner might add her husband as a qualified adult onto her payment but at the same time he might decide to apply in his own right. People make those choices themselves. Some are dependants and some are there in their own right. This payment was made to the primary payment recipient.

10:40 pm

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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I understand what happened. What I do not understand is the rationale for why it happened. There could be two couples living next door to each, number 3 and number 4 on Connolly or Pearse Road or whatever you want to call it. Those two elderly people could have individual payments and their neighbours, one as an adult dependant, and neither would have ever anticipated they might lose out on a payment such as this because they applied for that payment. There is a great deal of shock about this for those families and individuals who are affected. They came to expect the payment. Perhaps the Minister will say if this is not the case, but as I understand it, her Department was initially going to pay it to dependants also. Will the Minister make a comment on that? I do not believe it is too late. Will she look at this now and consider extending the payment to adult dependants? It is the right thing to do, it is not too late, and people are under enormous pressure. This €200 was expected. People had it allocated to a particular bill or set of shopping. They should get it too.

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Government made a decision that 1.2 million people would receive €260 million in supports as part of the spring payments. We have taken a number of different steps to help people with the cost of living. That has included increases to weekly payments, double payments, and has also included lump-sum payments. At the end of last year, the Deputy will remember we had the double payment in October and at Christmas and we also had lump-sum payments - we had a €400 lump sum on the fuel allowance, €500 lump sum carer's support grant and a €500 lump sum for disability payments. The Government's decision in terms of the spring package was that it would be a €200 lump-sum payment. That is what the Government decided, that is what my Department did and it was paid at the end of April.