John Brady (Wicklow, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

685. To ask the Minister for Social Protection if he will set social protection payments at the poverty line as part of his plans to reform the system; and if he will make a statement on the matter. [24582/16]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Analysis in the Social Inclusion Monitor 2014 shows the crucial role that Ireland’s social protection system plays in alleviating poverty, cushioning people from the worst effects of unemployment and ensuring an adequate standard of living.

Using Eurostat data for 2014, social transfers (excluding pensions) reduced the at-risk-of-poverty rate in Ireland from 37.2% to 15.6%, thereby lifting over a fifth of the population out of income poverty. Ireland is the best performing EU member state in reducing poverty through social transfers. The poverty reduction effect at 58.9% is the highest in Europe, almost twice the EU average.

The latest poverty data are for 2014 and do not fully reflect the impact of the recovery in economic growth and employment. The unemployment rate in 2014 was 11.3%, down from a peak of 15% in 2012. Since then, the unemployment rate has fallen further, to 8.3% in August 2016. As unemployment is strongly linked to poverty, we can expect to see further decreases in basic deprivation and consistent poverty.

In line with this, the Pathways to Work Strategy 2016-2020 sets out comprehensive plans to increase labour market participation and make work pay. It continues to prioritise the activation of the long-term and young unemployed people, with supports provided through the network of Intreo offices.

A range of welfare and income tax measures were introduced in Budgets 2015 and 2016 to further incentivise work and improve living standards. The social impact assessment of the Budget shows greater rewards for working, with over 80% of the unemployed substantially better-off in work. The Government is committed to restoring living standards to ensure that everyone will benefit from the recovery.

Looking ahead, the new Programme for a Partnership Government contains a number of significant commitments to enhance the welfare system in the years ahead, including above-inflation rate increases for pensioners.

The appropriate rates of welfare supports in the year ahead will be considered by Government as part of its deliberations on the next Budget over the coming weeks. In this regard, it should be noted that each €1 increase in all weekly social welfare payments is estimated to cost €71.7 million in 2017.