Minister for Social Protection Heather Humphreys has indicated that across-the-board welfare increases may not feature in Budget 2025, with increases instead being focused on pensioners, carers and those with disabilities.
Hopes were also rising for further lump sum payments following the popularity of similar measures in the last budget.
However those in receipt of long-term unemployment welfare payments look set to miss out on a budget boost. Ms Humphreys also said last year’s once-off double child benefit has proved “extremely, extremely popular” and that the child benefit payment is “very important” payment, in comments which could also signal a repeat of that move this year.
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Asked about reports that Government backbenchers want a €20 increase in the pension in Budget 2025, she said: “I absolutely agree that pensioners should be prioritised in this budget along with carers and people with disabilities. As we do every year, we will work out a budget that is targeted at those most in need. Given the fact we are at full employment, I am not sure if there is a policy rationale for increasing the payments on those who are long-term unemployed. We have a lot of supports to help people get back into work. A €20 increase across the board in social welfare would cost €1.5bn, and there are other Ministers looking for increases in their budget so it’s about sitting down and working out a budget that targets those most in need.”
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She said she felt it was important that the budget supports people who cannot work such as people with severe disabilities. She also singled out carers and pensioners as needing supporting and said “I do think we should focus on that cohort.”
She said there was not a policy rationale for increasing payments for people who are long-term unemployed.
The Minister also gave tentative indications that further lump sum payments could be made.
“I think it’s important to remember that lump sum payments were introduced at a time when inflation was running at a very high rate and thankfully, inflation has dropped considerably since then. However, the cost of going to the supermarket is still expensive, groceries are expensive. There’s no doubt about that. And lump sums have proved very, very popular. I have to say I was in Connolly station there on Monday morning and there was a lady I met going up the escalator as we were announcing the expansion to the free travel pass, and she said to me ‘the lump sum was great.’ She said keep it going Heather. So there you go. That’s all I can say.”
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Lump sum payments made in the last budget included a €300 fuel allowance payment, a €400 disability grant and a €400 lump sum Working Family Payment.
Asked about the suggestion of cutting inheritance tax, she said: “I need increased tax and increased income to be able to fund increases in social welfare. Inheritance tax is something that has always been a feature of our taxation system but I do know that the Minister for Finance (Jack Chambers) is looking at this but that’s something you’ll have to ask him.”
She said the Government does not want to impede the transfer of property or the provision of additional housing, however.
She was speaking at the announcement of nine extra weeks paid parents leave, up from seven weeks per parent.
Some 16,700 applied for the leave last year which has now risen to 78,000 parents availing of the leave. Minister for Children Roderic O’Gorman described the move as a significant Government policy intervention.
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