Written answers

Wednesday, 1 June 2022

Department of Employment Affairs and Social Protection

Cost of Living Issues

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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164. To ask the Minister for Employment Affairs and Social Protection the steps that she is taking to protect pensioners against the sharp increases in the cost of living;; and if she will make a statement on the matter. [28530/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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On an ongoing basis, and as part of the normal budgetary cycle, my Department actively monitors key economic indicators and also takes account of research data including that of the Minimum Essential Standard of Living from the Vincentian Partnership for Social Justice.

The social impact of budget measures is also assessed using the SWITCH model developed by the ESRI. 

It is through this evidence-based approach that, over the past 10 years, budget measures have both exceeded inflation and have also been targeted to support those most at risk of poverty.  This is evident in the recent results of the Survey on Income and Living Conditions which showed welcome reductions in the number of people at risk of poverty or deprivation.

Having said that, I am very aware that, mainly due to external factors, the recent increase in consumer prices, especially the increase in fuel and other energy prices, has exceeded even the highest forecasts. 

In response the Government acted early to address these challenges.  To help mitigate the effects of these rising costs, the Government announced a package of measures in February, which will have a positive impact on the incomes of all households in our country. 

This package included lump sum payments of €125 and €100 to all households in receipt of the Fuel Allowance payment, which was paid to social welfare recipients in March and May.

Taken together with the €5 increase in Fuel Allowance introduced as part of Budget 2022, this means that low-income households will see an increase of 55% in Fuel Allowance support provided during this Fuel season compared to last season.  In conjunction with the electricity costs emergency benefit payment, such households will receive over €600 in additional energy supports this year.  Deputies will also be aware of the measures taken by the Minister for Finance to reduce duties on fuel and retain the low level of VAT on hospitality services.  The Minister for Transport has also reduced public transport fares by 20%.  

These measures are in addition to others introduced as part of Budget 2022 - which was the largest social welfare budget package in 14 years - and are more expansive than measures introduced in most other countries.

This Government is very aware of, and concerned about, the impact on rising prices on Irish households, particularly pensioners.  We have reacted quickly with not just social protection measures, but implemented a wide range of initiatives covering tax, energy credits, excise and transport measures.

All of these measures will be kept under review, together with trends in prices to inform preparations for the budget later this year.

I hope this clarifies the matter for the Deputy.

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