Dáil Éireann Debate, Tuesday - 12 May 2026
760. Deputy Mark Wall asked the Minister for Social Protection to provide an update on the Roadmap for Social Inclusion 2020-2025 commitment to finalise an approach for benchmarking pension payments; and if he will make a statement on the matter. [34901/26]
View answer762. Deputy Mark Wall asked the Minister for Social Protection the current status of the Department's report on the benchmarking and indexing of working-age social protection rates; when it is expected to be finalised and published; and if he will make a statement on the matter. [34903/26]
View answerI propose to take Questions Nos. 760 and 762 together.
The Roadmap for Social Inclusion 2020-2025 contains a commitment to develop a benchmarking approach for use in adjusting the value of State pension payments. It is worth noting that indexing weekly social protection rates to only one measure, such as inflation, presents a challenge as it can widen the income gap between those dependent on social protection payments and other people in society.
The smoothed earnings approach proposed by the Department to index the rate of State Pension payments was subsequently endorsed by the Commission on Pensions and addresses this challenge as it links the pension rate to 34% of average earnings, and allows for variation in periods where inflation exceeds earnings growth.
In 2022 the Government decided that the Minister for Social Protection would, in submitting budget options, set out a rate of pension payment calculated using the smoothed earnings benchmark approach as an input for consideration as part of Budget discussions, on an annual basis, starting from September 2023.
Since then, this calculation has been prepared and submitted annually to Government as part of preparations for the Budget.
A report on the benchmarking and indexing of working age social protection rates is being undertaken by my Department and is yet to finalised.
A new Roadmap for Social Inclusion, to cover the period 2026-2030 is under development and is anticipated to be published shortly.
