Pay-related benefits for those losing their jobs are likely to be introduced in the budget, the Minister for Social Protection Heather Humphreys suggested in advance of a meeting with Minister for Public Expenditure and Reform Paschal Donohoe on Sunday afternoon.
Ms Humphreys said negotiations were continuing in relation to the budget but that the issue of improved benefits for those who have a long record of working before being made redundant is something she is very keen to “push on”.
The proposal has been floated on a number of occasions during the past couple of years but came to the fore again in recent months when Tara Mines was temporarily closed. Several hundred workers were laid off and severely impacted by the resulting drop in income they suffered, the Minister acknowledged in an interview with RTÉ Radio’s This Week programme.
“If you look at the workers in Tara Mines, they lost their jobs and then went on to a flat rate of €220 euros per week. So that is sudden and huge drop in their income and indeed I spoke to them. So, I’m actually looking at pay-related benefit, that you get a higher rate when you become unemployed, and then it tapers down so it avoids that that cliff edge drop in income,” she said.
Budget 2025 main points: Energy credits, bonus welfare payments, higher minimum wage and tax changes
Budget 2025 calculator: How this year’s budget will affect your income
Costing the election manifestos: Making sense of the billions being thrown out by parties to win your vote
VAT cuts for restaurants were a bad idea last month. Why are they a good idea now?
“I think pay-related benefits is the way forward. It worked very well during Covid In terms of having the tiered amounts and I’m very keen to push that on.”
The Government previously ran a public consultation on the idea and model previously floated was that those losing their jobs after five years or more of employment would receive 60 per cent of their gross pay up to a limit of €450 for the first six months.
A low cap of around €300 could apply to workers who had been in continuous employment for between two and five years immediately before making a claim.
Howlin retires, Budget run-in, Starmer pours water on reunification
Siptu and other unions representing staff at Tara Mines sought the immediate introduction of pay related benefit in talks with the Minister earlier in the summer and her comments in the interview strongly pointed to their inclusion in the Budget.
Ms Humphreys said talks on a number of issues were continuing and she would meet with Mr Donohoe on Sunday afternoon.
On mortgage relief she confirmed that some action would be taken to help those most severely affected by recent interest rises, including those on tracker products but warned the measures would not be enough to satisfy everyone.
“This is something that we’re all very conscious of. I’ve spoken to many people who have come off fixed rate mortgages or find themselves on a variable rate or a tracker mortgage.
“Many of them have seen their mortgage go up by €500, €600 or indeed more. As a Government, we want to try and help them. It certainly won’t go all the way but Minister McGrath has been working on this matter and I think he plans to announce details on Tuesday.
Ms Humphreys would not confirm the scale of increases to basic social welfare payments to be made in the Budget but suggested that increases for pensioners would not be less than for those claiming payments in relation to unemployment.
She all but confirmed, meanwhile, that there would be another double payment this year in relation to child benefit in the run up to Christmas and that there would no move to means test child benefit payments generally.
“I’m particularly looking at working families, carers, people with disabilities and older people. And, as I said, the double Child Benefit last year was very popular,” she said.
Asked specifically about means testing, she said: “It has always been a universal payment and I know if we start to introduce a means test system there’s going to be winners, there’s going to be losers. But I can tell you, I worked for a long time in the credit union and I didn’t see too many millionaires coming in there.
“People needed that payment and it was it was very, very welcome as it helped them get through many difficult times with children.”
Then Minister said she also anticipates that supports for the provision of hot meals to children in primary schools will be continued and expanded so that “over the next number of years”, all children at primary level would receive one.
The three Coalition party leaders were due to meet on Sunday afternoon to finalise measures to be announced in Tuesday’s budget.
While nothing is certain, a large number of measures have been trailed in advance.
Speaking at a commemoration of Noel Lemass, an anti-Treaty officer and brother of former taoiseach Seán Lemass, who was killed by State forces, Tánaiste Micheál Martin said the objective of the budget would be to “reduce the pressures that are on people” in relation to cost of living.
“[We need] to build for the future in terms of creating financial mechanisms which will enable us to make sure the young people today will have their future provided for on a number of fronts, be it infrastructure, be it climate change or be it pensions and entitlements into the future,” he said.
“So, we aim to frame this budget with a clear focus on the future as well as looking after people’s present-day needs.” – Additional reporting: PA
