Richard Bruton (Dublin Bay North, Fine Gael)
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67. To ask the Minister for Enterprise, Trade and Employment the main challenges to be overcome in the development of a living wage; and if this concept includes terms of access to protection and services needed by those at work. [25379/22]

Leo Varadkar (Dublin West, Fine Gael)
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The Government has been clear that a legacy of the pandemic should be better pay, terms and conditions for everyone, but particularly those currently on low pay. We are committed, therefore, to honouring the programme for Government commitment to progressing a living wage over the lifetime of this Government.

In 2021, I asked the Low Pay Commission to examine the programme for Government commitment to progress a living wage over the lifetime of the Government and to make recommendations to me on how best we can achieve this commitment. There are many issues to consider in the move to a living wage, including the method for calculation and whether this should be done based on the basket of goods approach or as a percentage of the median wage. Other issues for consideration concern the impact the introduction of a living wage would have on the wage bill and also how it would interact with the existing tax-benefit system.

To assist its work, the Low Pay Commission commissioned a team of researchers in NUI Maynooth to conduct research on the living wage. This research was to consider the policy, social and economic implications of a move to a living wage and the process by which Ireland could achieve it.

The research was to also examine international evidence on living wages, the different calculation methods available, the policy implications of moving to a living wage and ultimately outline options for moving to a living wage in Ireland. I understand that in January of this year, the Low Pay Commission received the living wage supporting research report from the researchers at NUI Maynooth. The Commission met with the researchers at NUI Maynooth and also held a consultation with a number of stakeholders and representative groups with an interest in the progression to a living wage where the implications and challenges of moving to a living wage were discussed.

The Low Pay Commission submitted its Living Wage Report to me in March 2022, along with the accompanying research report from NUI Maynooth. While the report and its recommendations address issues such as the interaction with the existing tax-benefit system, I am still considering the next steps required in the progression to a living wage and intend to bring proposals to Government shortly, including the publication of the Commission’s report and the accompanying research report.

The move to introduce a living wage is just one of a number of measures aimed at ensuring work pays, particularly for those on low pay. The Pathways to Work 2021 - 2025 strategy which forms part of the national Economic Recovery Plan is also aimed at ensuring that work pays. As part of this strategy, each new jobseeker will be provided with access to a Benefit of Work statement using an online Benefit of Work calculator. This strategy builds on the Make Work Pay action plan contained in the Comprehensive Employment Strategy for People with Disabilities (2015 - 2024). The introduction of the Statutory Sick Pay Scheme is another measure that will also help workers in this regard, along with the Right to Request Remote Work Bill which should reduce commuting costs for workers which for some may also act as a disincentive to work.