Dáil debates

Thursday, 19 June 2025

Ceisteanna Eile - Other Questions

Social Welfare Code

5:05 am

Photo of Micheál CarrigyMicheál Carrigy (Longford-Westmeath, Fine Gael)
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97. To ask the Minister for Employment Affairs and Social Protection when he expects to publish the comprehensive review of means testing across the social welfare system as committed to in the programme for Government; and if he will make a statement on the matter. [32707/25]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I thank Deputy Carrigy for his question. Continuing from where we finished with Deputy Dempsey, there were 14,791 control reviews in 2024, which is quite small in the overall carer's allowance paid out but it is a balance that has to be reached. On Deputy Carrigy's question, means tests are a central part of any social protection system to ensure that resources which are limited are targeted at those most in need. Ireland's system of social transfers consistently ranks among the top performers in the European Union for poverty reduction. A key factor in this achievement is Ireland's use of means testing in targeting resources for the most vulnerable in our society. Research including that presented at last week's budget perspectives conference of the ESRI indicates that targeting of supports to more vulnerable cohorts through means testing continues to be important, even as societal income overall increases. Means tests and income thresholds are kept under regular review and a number of significant changes have been made in recent years. A number of changes to means testing which provide for higher income disregards have been introduced in recent budgets. These disregards ensure that where people are in receipt of a social assistance payment and are working, a certain level of income from that work is not assessed in the means test. We are currently conducting a comprehensive review of means testing within the entire social protection system. The aim is to examine various means-tested schemes and identify issues related to their respective means tests. There are more than 90 schemes, many of which are means tested so this is a complex and detailed task. It is my intention that the review's findings will be completed in time to guide decisions regarding potential changes to means testing, particularly in the lead-up to budget 2026 and most definitely in the lead-up to future budgets. The review is nearing completion but it is complex and will require thorough evaluation when completed.

Photo of Micheál CarrigyMicheál Carrigy (Longford-Westmeath, Fine Gael)
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It is a key commitment in the programme for Government to review the means test across the entire social welfare system. A more consistent, transparent and targeted approach is needed. It needs to be a priority to ensure low-income families, carers, those with disabilities and part-time workers are not unfairly penalised. I ask the Minister to ensure this review addresses anomalies across the schemes and takes into account the real cost of living today and the need to support people trying to balance work and caring. Clarity and a timeline for publication would be welcome. I ask for it to be prioritised in the Department so that this review is done in time and we can make changes for budget 2026.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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It is complex as it involves 96 schemes, many of which are means tested. A good outcome will be consistency across schemes and in how means testing is applied. We had a discussion this morning about areas it may not need to or should not apply to in the context of work done by those on these schemes. Even though the Department has a budget of €27 billion, resources are still scarce and they have to be targeted. I want to ensure they are targeted for those most in need, which the means test assists us to do. It has consistently been shown in EU figures to ensure that we target those most in need. A lot more work needs to be done in that space. It is a priority but it is complex given the volume of schemes and the various challenges.

Photo of Micheál CarrigyMicheál Carrigy (Longford-Westmeath, Fine Gael)
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I welcome the Minister's comments on prioritising those most in need. That is what we need to do, particularly for low-income families, carers, those with disabilities and part-time workers. I welcome consistency in the future. As a public representative, I do not see consistency in how applications are treated. People who are ultimately entitled are turned down on one or two occasions and have to go through an appeals system when it should have been granted the first time. I appeal for consistency in means testing in the future.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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That is an important aim and one we will try to achieve. This review is not happening in isolation. Means tests and income thresholds are kept under regular review. We made a number of significant changes in recent years. Significant changes have been made to the income thresholds for the working family payment and income disregards for disability allowance, the blind pension, the fuel allowance and farm assist have increased. Next week, on 3 July, the carer's income disregard will increase to €625 for a single person and €1,250 for a spouse or partner which represents an increase for between €332 and €665 since 2021. We are reviewing the overall means test but making changes budget after budget which will continue over the course of the next number of budgets.