Written answers

Tuesday, 21 March 2023

Department of Employment Affairs and Social Protection

State Pensions

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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804. To ask the Minister for Employment Affairs and Social Protection if she will provide a response to an organisation’s (details supplied) call for an €11 increase in the State pension. [12478/23]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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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 including 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.

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 scheme payments by €11 would be €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. Any such increase would be a matter for budgetary consideration.

The Government is 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 recently 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, including pensioners, 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.

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