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

246. To ask the Minister for Social Protection the estimated annual cost of increasing disability allowance in line with inflation plus €4 in each of the years 2018 to 2022. [17027/17]

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

247. To ask the Minister for Social Protection the estimated cost of increasing disability allowance by €20 and index linking it to inflation; and if he will make a statement on the matter. [17063/17]

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

I propose to take Questions Nos. 246 and 247 together.

The Department of Finance’s 2017 Budget Day book provides forecasts for inflation for the five years 2017 to 2021 inclusive. The projected inflation for 2018 as measured by the Harmonised Index of Consumer Prices (HICP) is 1.8% and 1.9% for the years 2019 to 2021, inclusive. A projection for 2022 is not available.

The following tables outline the rate increases by year and associated costs. These costings are based on 2017 recipient numbers and do not take into account changing trends in recipient numbers from 2018 onwards. In addition, the costs are based on increases to the personal rate of disability allowance (DA) only, currently €193 per week.

Table 1: Increase personal weekly rate of disability allowance by HICP inflation plus €4 each year

Table 2: Increase personal weekly rate of disability allowance by €20 and inflation

There is an analogous social insurance payment, Invalidity Pension (€198.50 per week), which is paid to people who are permanently incapable of work (subject to satisfying the relevant medical criteria and a minimum number of paid qualifying PRSI contributions). Each €1 increase in the weekly rate of Invalidity Pension would cost €2.9 million in a full year.

In addition, Blind pension is available for those aged 18 to 66 who are blind or visually impaired. The cost of a €1 weekly personal increase in the Blind Pension is €0.07 million in 2017 and a full year.

It should be noted that (i) in the event of the Disability Allowance weekly rate exceeding the Invalidity Pension rate, some Invalidity pensioners (number not determinable) would transfer to the means tested Disability Allowance scheme to avail of the higher rate on that scheme; (ii) the costs shown above do not include the cost of proportionate increases for qualified adults; (iii) any additional costs which might arise as some persons in receipt of other welfare schemes might potentially apply for and qualify for Disability Allowance thereby also benefitting from a higher rate of payment than that which applies to their current scheme or (iv) offsetting savings on the Rent Supplement scheme as the additional weekly increase would reduce the level of entitlement under that scheme.