Paul Murphy demands emergency boost to social welfare amid inflation
Paul Murphy addressed the Dáil on 17 May 2022, criticising the government's social welfare increases amid rising inflation and energy costs. He called for immediate increases to social welfare to prevent low fixed-income households falling deeper into poverty.
Demand for immediate welfare increases
Paul Murphy argued the last budget raised social welfare by only 2.5% while inflation in the last year has exceeded 7%. He asked whether there is any intention to immediately increase social welfare rates to keep pace with the spiralling cost of living so those on low fixed incomes are not compelled to fall deeper into poverty, calling current payments "crumbs" in the face of bills "soaring by literally thousands of euros."
Government measures and minister's response
The minister replied that the department monitors key economic indicators and uses research such as the Vincentian Partnership for Social Justice and the ESRI switch model to assess social impact. The minister listed government measures - a £125 lump sum to all households in receipt of the fuel allowance paid in March, a further €100 lump sum to be paid this week, a five-year increase in the fuel allowance from Budget 2022 leading to a 55% increase in fuel allowance support this fuel season versus last, over €600 in additional energy supports for eligible households this year, reduced duties on fuel, retained lower VAT in hospitality and a 20% reduction in public transport fares.
Official poverty and deprivation data cited
The minister referenced the CILC 2021 survey as the official poverty data for Ireland (referring to 2020 income). The report showed consistent poverty falling from 4.7% to 4.0%, at risk of poverty from 13.2% to 11.6%, and deprivation from 14.3% to 13.8%. The minister also said social transfers reduced the at-risk-of-poverty rate from 38.6% to 11.6% and that COVID-19 income supports cut the at-risk rate from 19.9% to 11.6%. Child consistent poverty fell from 7.2% to 5.2% and lone-parent consistent poverty from 19.3% to 13.1%.
Housing impact and rent subsidy concerns
Paul Murphy highlighted housing pressures, noting that after paying rent one in two people in local authority housing are at risk of poverty and that 59% of those reliant on Hap or Ras are at risk after rent. He questioned the value of large rental subsidies to landlords if those outcomes persist.
Protests and campaign plans
Paul Murphy said the Cost of Living Coalition has organised a protest at one o'clock this Thursday outside the Dáil and intends to build a mass movement on the streets to force government action on rising costs and inadequate welfare levels.
We publish thousands of recordings to make Irish politics transparent and resistant to manipulation. Spotted an error? Report it — together we are building a reliable archive of Irish politics.
Minister, in the last budget you increased social welfare rates by a measly 2.5%. Now we have seen inflation in the last year of 7% or more. So I want to ask whether you have any intention of immediately increasing social welfare rates to at least keep pace with the spiralling cost of living so that those who are on low fixed incomes aren't compelled to fall deeper and deeper into poverty. 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 a lump sum of £125 to all households in receipt of the fuel allowance payment, which was paid to social welfare recipients in March. This week, a further lump sum payment of €100 will be paid to those households. Taken together with the five-year 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 fat 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, including the largest social welfare budget package in 14 years and are more expansive than measures introduced in other countries. The government likes to talk a lot about the cost of living being caused by factors outside of their control. But look at the things that are in the government's control. Social protection is set at poverty levels. That was the case before the huge inflation we are seeing at the moment, but it means it is getting worse. It means that the crumbs that are being offered to people are simply not good enough. When their bills are soaring by literally thousands of euros, giving them a few hundred euros is not enough. In 2021, 19% of people unable to work due to long-standing health problems were living in consistent poverty. And that was before this year's price increases. The poverty line in 2021 was 286 euros, when the standard rate of social welfare is only 208 euros. And you look at the cost of housing out of control before Covid, before the invasion of Ukraine. 59% of people dependent on rent subsidies like Hap were at risk of poverty. What is the point of paying out almost a billion euros a year to landlords if that is the end result? Thank you and thank you Deputy. Just to say that the survey on income and living conditions, the CILC 2021, is the official poverty data for Ireland. The survey was undertaken in 2021 and refers to 2020 income. Consistent poverty reduced from 4.7% in 2020 to 4% in 2021. At risk of poverty reduced from 13.2% to 11.6%. The deprivation rate reduced from 14.3% to 13.8%. In 2021 social transfers resulted in reducing the at risk of poverty rate from 38.6% to 11.6%. In 2021 COVID-19 income supports reduced the at risk of poverty rate from 19.9% to 11.6%. Consistent poverty for children reduced from 7.2% in 2020 to 5.2% in 2021. Consistent poverty for loan parents reduced from 19.3% to 13.1%. I will give you some other statistics from the same report. After paying their rent, one in two people living in local authority housing are at risk of poverty. Even worse, for those reliant on Hap or Ras, 59% of them are at risk of poverty after paying their rent. Over one in ten of the population living in enforced deprivation. Almost one in two in the population not able to afford to replace worn-out furniture. Almost one in ten cannot afford new clothes. Almost one in ten cannot afford to have family or friends over for a drink or meet for a meal once a month. That is all before the price rises are kicking in or affecting people. Unless the Government acts now to raise the pitiful levels of social welfare payments, there is a huge crisis for those people. These are precisely the people we are talking about who are making the choice between eating or eating. It is why the Cost of Living Coalition has gotten together. It is why we are organising our first protest at one o'clock this Thursday outside the Dáil. We will be the first of many to build a mass movement on the streets to force action from the Government on this issue. Thank you. Deputy, can I just say that the Government has taken action. We have taken considerable action. I have listed them before. 125 euro lump sum payment, 100 euros this week. Again 200 energy credit. Excise reduced on fuel. Public transfer fares reduced by 20%. Lower VAT levels have been retained in the hospitality sector. On top of that we have introduced the largest social welfare package in 14 years last October. All of this has been done on the back of over £9.2 billion being spent on the pandemic unemployment payment over the last two years. Yesterday we had record export figures. Child poverty is falling. The number at risk of poverty is falling. It shows incomes are up and inequality is down. The European Commission forecast Ireland will have the second highest growth in the EU this year. The unemployment rate is lower now than it was before the pandemic. The number of people on the live register is at its lowest point for over a decade. But we want to do more. Through my department, Minister Simon Harris, we are developing more apprenticeships, more training and education courses. Because the way out of poverty is employment. Government acc burecam Archive. VINE. Marchant. Thank you, Philippine. Thank you.
Thank you for downloading 🙏
If you publish this material on social media, we would be very grateful if you tagged VideoParliament. It helps us reach more people and keep building a transparent archive of Irish politics.
