Written answers

Thursday, 1 July 2021

Department of Employment Affairs and Social Protection

Social Welfare Rates

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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298. To ask the Minister for Employment Affairs and Social Protection the estimated cost in 2022 and in a full year for every 1% and every €1 per week increase in basic social welfare rates by each social welfare payment. [35682/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The estimated full year cost of increasing each weekly social welfare payment by €1 is shown in the table below.

Payment Personal €m Qualified Adult €m Total €m*
Social Insurance Schemes
State Pension (Contributory) € 22.0 € 3.0 € 25.0
Widow/er's or Surviving Civil Partner's (Con) Pension € 6.2 € 6.2
Deserted Wife's Benefit € 0.3 € 0.3
Invalidity Pension € 3.1 € 0.2 € 3.3
Partial Capacity Benefit € 0.1 € 0.0 € 0.1
Guardian's Payment (Contributory) € 0.1 € 0.1
Disablement Pension € 0.2 € 0.2
Illness Benefit € 2.5 € 0.1 € 2.6
Jobseeker's Benefit € 6.6 € 0.4 € 7.0
Jobseeker's Benefit (Self Employed) € 0.2 € 0.0 € 0.2
Carer's Benefit € 0.2 € 0.2
Maternity & Adoptive Benefit € 1.0 € 1.0
Paternity & Parent's Benefit € 0.1 € 0.1
Social Assistance Schemes
State Pension (Non Con) € 5.0 € 0.1 € 5.1
Blind Person's Pension € 0.1 € 0.0 € 0.1
Widow/ers or Surviving Civil Partner's (Non-Con) Pension € 0.1 € 0.1
One-Parent Family Payment € 2.1 € 2.1
Carer's Allowance € 2.6 € 2.6
Half Rate Carer's Allowance € 1.1 € 1.1
Jobseeker's Allowance Max Rate € 6.4 € 1.1 € 7.5
JA age 18 to 24 € 0.7 € 0.0 € 0.7
Disability Allowance € 8.0 € 0.6 € 8.6
Farm Assist € 0.3 € 0.1 € 0.4
Employment Support Schemes (BTWA & BTEA) € 0.7 € 0.1 € 0.8
Employment/Internship Schemes (CE, Tús, RSS etc.) € 1.7 € 0.3 € 2.0
Supplementary Welfare Allowance € 0.7 € 0.1 € 0.8
TOTAL* € 72.1 € 6.1 € 78.2

*Rounding may affect totals.

The estimated full year cost of increasing each weekly social welfare payment by 1%, with all payment rates rounded to the nearest 10 cent, is shown in the table below.

Payment Personal (€m) Qualified Adult (€m) Total (€m)*
Social Insurance Schemes
State Pension(Contributory) € 53.9 € 7.2 € 61.1
Widow/er's or Surviving Civil Partner's (Con) Pension € 14.5 € 14.5
Deserted Wife's Benefit € 0.6 € 0.6
Invalidity Pension € 6.5 € 0.4 € 6.9
Partial Capacity Benefit € 0.2 € 0.0 € 0.2
Guardian's Payment (Contributory) € 0.1 € 0.1
Death Benefit Pension € 0.1 € 0.1
Disablement Pension € 0.6 € 0.6
Illness Benefit € 5.4 € 0.2 € 5.6
Injury Benefit € 0.1 € 0.0 € 0.1
Incapacity Supplement € 0.1 € 0.0 € 0.1
Jobseeker's Benefit € 13.4 € 0.6 € 14.0
Jobseeker's Benefit (Self-Employed) € 0.4 € 0.0 € 0.5
Carer's Benefit € 0.4 € 0.4
Maternity & Adoptive Benefit € 2.6 € 2.6
Paternity & Parent's Benefit € 0.6 € 0.6
Social Assistance Schemes
State Pension (Non Con) € 11.9 € 0.3 € 12.1
Blind Person's Pension € 0.1 € 0.0 € 0.1
Widow/ers or Surviving Civil Partner's (Non-Con) Pension € 0.1 € 0.1
One-Parent Family Payment € 4.1 € 4.1
Carer's Allowance € 6.0 € 6.0
Half Rate Carer's Allowance € 2.4 € 2.4
Guardian's Payment (Non-Contributory) € 0.1 € 0.1
Jobseeker's Allowance Max Rate € 12.9 € 1.8 € 14.7
JA age 18 to 24 € 0.7 € 0.0 € 0.8
Disability Allowance € 16.0 € 1.1 € 17.1
Farm Assist € 0.6 € 0.1 € 0.7
Employment Support Schemes (BTWA & BTEA) € 1.7 € 0.3 € 1.9
Employment/Internship Schemes (CE, Tús, RSS etc.) € 4.0 € 0.5 € 4.4
Supplementary Welfare Allowance € 1.4 € 0.1 € 1.5
TOTAL* € 161.5 € 12.7 € 174.1

*Rounding may affect totals.

The costs shown above are based on the estimated number of recipients in 2021, and are subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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299. To ask the Minister for Employment Affairs and Social Protection the estimated cost in 2022 and in a full year of a €20 per week increase in the basic rate of disability allowance with a proportionate increase for qualified adults and no proportionate increase for qualified adults. [35683/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Disability Allowance (DA) is a means-tested payment for people with a specified disability who are aged between 16 and 66. The disability must be expected to last for at least one year and the allowance is subject to a medical assessment, a means test and a habitual residency test.

The estimated annual expenditure on DA for 2021 is some €1.83 billion. The estimated cost of increasing the weekly personal rate of DA by €20 would be an additional €171.1 million. This estimate includes a proportionate increase for qualified adults (QA). With no proportionate QA increase the cost would be an estimated €160 million.

My Department regularly reviews its supports and payment schemes to ensure that they continue to meet their objectives. Given the cost implications, any changes to the current payment rates would have to be considered in the overall budgetary context.

I trust that this clarifies the matter.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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300. To ask the Minister for Employment Affairs and Social Protection the estimated cost in 2022 and in a full year of every €10 increase in the upper income disregard currently €350 applying to disability allowance. [35684/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Disability Allowance (DA) is a means-tested payment for people with a specified disability who are aged between 16 and 66. The disability must be expected to last for at least one year and the allowance is subject to a medical assessment, a means test and a habitual residency test.

DA is structured to support recipients to avail of opportunities to pursue their own employment ambitions, be that self-employment or in insurable employment. When an individual commences employment, they can avail of an income disregard of €140 per week. In addition, a 50% taper on earnings between €140 and €350 is also applied (disregarded), for the purpose of the means test.

The ESRI SWITCH microsimulation model has been used for the purposes of the estimate requested. The additional cost of increasing the upper limit of the earnings disregard for the disability allowance from €350 in increments of €10 up to €450 respectively are set out in tabular form below.

It is important to note that SWITCH is a tax-benefit microsimulation developed by the ESRI. It provides estimatesof full-year policy changes, using data from the CSO Survey on Income and Living Conditions. These estimates are based on current Disability Allowance recipients. As Disability Allowance is a comparatively small scheme in terms of recipients, there may be issues around sample size when running costings. SWITCH cannot predict changes in behaviour (including increased take-up of employment). It should be noted that increased disregards may in fact increase the number of eligible recipients, and therefore, increase the overall Disability Allowance expenditure.

Table: Disability Allowance Disregard Upper Limit Increase from €350.00 to €450.00 in increments of €10.00

Base value New value Increase Total Estimated additional Expenditure (€m per year) per incremental step
€350 €360 + €10 €0.53
€360 €370 + €10 €0.53
€370 €380 + €10 €0.42
€380 €390 + €10 €0.41
€390 €400 + €10 €0.41
€400 €410 + €10 €0.37
€410 €420 + €10 €0.32
€420 €430 + €10 €0.02
€430 €440 + €10 €0.00
€440 €450 + €10 €0.00

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