Darren O'Rourke (Meath East, Sinn Fein)
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297. To ask the Minister for Finance if the increase in the carbon tax has been subject to a human rights and equality impact assessment as required under section 42 of the Irish Human Rights and Equality Commission Act 2014 with particular consideration for the vulnerability of members of the Travelling community to energy and transport poverty, particularly those living in very poor quality and or substandard housing and caravans; and if he will make a statement on the matter. [35172/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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In line with the 2020 Programme for Government policy approach, the Budget 2021 carbon tax increase is informed by research conducted by the Economic and Social Research Institute of Ireland (ESRI).

The ESRI research paper, “Carbon Taxes, Poverty and Compensation Options” found that the carbon tax could be increased in a progressive manner, with impacts on lower-income deciles and poverty offset through additional spending on social welfare supports. Specifically, the ESRI found that by recycling one third of the revenue raised from a €7.50 increase in the carbon tax, the lowest income deciles can be left on average better off and poverty reduced.

In line with the findings of this research, the Government has committed to very significant increases in a targeted package of social protection supports. These supports were selected to counteract the impact of the increased carbon tax, as identified by the ESRI. The specific measures are:

- An increase to the a Qualified Child Payment of €2 per week for children under 12 and €5 per week for children over 12 - This protects low income families and will reduce child poverty;

- An increase in the Living Alone Allowance of €5 per week - People living alone are often the elderly most at risk of poverty or people living with a disability. These groups are likely to have higher energy needs than average;

- An increase to the Fuel Allowance of €3.50 per week - This will compensate a broad range of lower income households (since the Fuel Allowance is means-tested) for the additional energy costs they are likely to incur due to an increase in the carbon tax.

The ESRI research indicates that interventions of this nature will reverse the regressive impact of the carbon tax and will actually lead to a reduction in overall poverty, particularly child poverty.