Written answers

Tuesday, 21 February 2023

Department of Employment Affairs and Social Protection

State Pensions

Photo of Paul MurphyPaul Murphy (Dublin South West, RISE)
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487. To ask the Minister for Employment Affairs and Social Protection if she will increase the State pension by at least €11 as called for by an organisation (details supplied); if she will review all social protection payments to ensure that no one on social welfare is forced to live in poverty; and if she will make a statement on the matter. [8783/23]

Photo of Catherine ConnollyCatherine Connolly (Galway West, Independent)
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492. To ask the Minister for Employment Affairs and Social Protection her plans to raise the maximum weekly rate of the State pension by €11 to keep up with inflation, as advocated for by an organisation (details supplied); the estimated cost of same; and if she will make a statement on the matter. [8858/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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I propose to take Questions Nos. 487 and 492 together.

On Budget Day last September, I announced the largest Social Protection package in the history of the state. A package that has seen the Government spend more than €2.1 billion on Social Protection measures, including over €880 million in order to provide for a €12 increase to the weekly rate of social welfare payments that came into effect from January 2023. This supports both pensioners and those of working age and includes a proportionate increase for qualified adults.

The rate increase is accompanied by a wide range of additional measures in 2023, including a significant increase in Working Family Payment thresholds which targets working families for critical support. This was on top of a range of 8 lump sum payments paid through Quarter 4 2022 to benefit a range of customers including pensioners, people with disabilities, carers, those living alone, and families with children. An Autumn and Christmas bonus were paid, the latter of which was, for the first time, paid to long term illness benefit recipients.

Taken together, for many household types, the combination effectively matches, or exceeds, inflation.

The ESRI post-Budget analysis shows that Budget 2023 general increases, when combined with one-off measures delivered in 2022 to support households with the cost of living, will be effective in protecting most households from rising prices.

The Department provides a range of schemes to those over State Pension Age - this includes State Pension, (Contributory), State Pension (Non-Contributory) and Widows (Contributory) Pension along with a number of smaller schemes. It is estimated that the full year cost to increase these schemes by €11 is €410 million. This includes increases to personal rate and also includes a proportionate increase for the qualified adults.

This costing is based on the estimated number of recipients in 2023 and is subject to change in the context of emerging trends and associated revision of the estimated numbers of recipients.

I am satisfied that the total social welfare budget package for 2023 has been designed to protect the most vulnerable in society. But we are aware that the cost of living continues to present challenges for people throughout the state who are feeling the effects of persistently high prices.

That is why Government has announced additional support for people over the coming months, including :

- A €200 lump sum payment to be provided to people on long-term Social Protection payments, on the same basis as the Christmas bonus, and including Working Family Payment recipients.

- For people receiving Child Benefit, a €100 lump sum payment for each child to be paid in June.

- An additional payment of €100 to be paid for each child for whom Back to School Clothing and Footwear Allowance is paid.

Together, these supports will provide over €410 million in additional supports to households and families in need.

I trust this clarifies the matter for the Deputies.

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