Dáil Éireann Debate, Tuesday - 24 June 2025
601. Deputy Liam Quaide asked the Minister for Social Protection if he will report on progress on completing and publishing the study on benchmarking and indexing working-age social protection payments committed to in the Mid-Term Review of the Roadmap for Social Inclusion; and if he will make a statement on the matter. [34532/25]
Amharc ar fhreagraThe Roadmap for Social Inclusion 2020-2025 contains a commitment to "Consider and prepare a report for Government on the potential application of the benchmarking approach to other welfare payments". The Mid-term Review of the Roadmap identified this commitment as one of the focuses for 2023 to 2025.
The roadmap also includes 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 was prepared and submitted annually to Government, most recently in September 2024, as part of preparations for Budget 2025. Any increases calculated under the smoothed earnings approach may be met, or exceeded, by a combination of rate increases and one-off measures taken by the Government in periods of high inflation.
A report on benchmarking and indexing working age social protection rates is being finalised by my Department and I will consider the report carefully once I have received it.
I trust this clarifies the matter for the Deputy.
