Written answers

Wednesday, 12 October 2022

Department of Employment Affairs and Social Protection

Cost of Living Issues

Photo of Claire KerraneClaire Kerrane (Roscommon-Galway, Sinn Fein)
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106. To ask the Minister for Employment Affairs and Social Protection further to Parliamentary Question No. 221 of 5 October 2022, if she will confirm that the removal of the long-term requirement will also mean that recipients of illness benefit will qualify for the cost-of-living support payment; and if she will make a statement on the matter. [50463/22]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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In response to the ongoing cost of living pressures, my Department will spend approximately €1.2 billion in social welfare measures during the coming months to help individuals and families through this difficult period.

One of these measures is the Autumn Cost of Living Double Payment which will be paid to those schemes which are eligible to receive the Christmas Bonus, with one amendment - the removal of the 12-month duration requirement for certain schemes - allowing short-term jobseekers and Supplementary Welfare Allowance customers to qualify for the October support.

Illness Benefit is not a qualifying payment for the Christmas Bonus. It is a scheme which, by its nature, is a short-term social welfare scheme. It has a high degree of churn with people coming onto the scheme and moving off every week, often with very short duration claims. For example, between July and September 2022, almost 115,000 Illness Benefit claims were awarded, and of these, only 21,000 remain in payment. This indicates a churn of 82% over just a three-month period. The average duration on Illness Benefit is 6 days.

In addition, many Illness Benefit payments are paid directly to the employer. Therefore, a double payment such as the cost of living support would be an employer subsidy as opposed to an additional support to the customer. This is not the intent behind the October cost of living support, nor would it be a targeted use of resources.

If an individual or family are struggling with additional costs, Additional Needs Payments can provide help and support to people facing financial hardship. Under the scheme, the Department may make an Additional Needs Payment to people on a low income, whether they are working or receiving an income support, to meet essential expenditure which a person could not reasonably be expected to meet out of their weekly income. A major national awareness campaign has promoted and raised awareness of the Additional Needs Payment.

I trust this clarifies the matter for the Deputy.

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