Press release
Minister Humphreys secures Cabinet approval for major Social Welfare reforms
From Department of Social Protection
Published on
Last updated on
From Department of Social Protection
Published on
Last updated on
The Minister for Social Protection Heather Humphreys has today announced a series of major social welfare reforms, as well as measures that will support pensioners, carers, people with disabilities and low-income families.
The Minister secured Cabinet Approval for the establishment of a new Pay-Related Jobseeker’s Benefit System in Ireland.
This represents a fundamental reform of the social welfare system and will ensure that people with long work histories will receive enhanced benefits if they lose their employment.
The introduction of Pay-Related Benefit will bring Ireland in line with other EU countries.
Under the system approved by Cabinet, there will be three rates of payment as follows:
If a person is still unemployed after the nine month period, they can apply for the basic Jobseeker’s Allowance.
Announcing details of the new Pay-Related Benefit today, Minister Humphreys said:
“I’m delighted to have secured Cabinet approval for a new Pay-Related Benefit System in Ireland.
“Under these major reforms, people who have a long work history and who have contributed to the system via their PRSI will receive enhance benefits if they find themselves in that awful situation of losing their job.
“This new system represents an enhanced safety net for workers and will help to soften the cliff-edge drop in income that can be faced when a person suddenly loses their job.
“The introduction of Pay-Related Benefit will bring Ireland in line with the vast majority of European countries that already operate similar systems.
“After securing Cabinet approval today, I have now asked my officials to draft the necessary legislation that will see Pay-Related Benefit introduced in the second half of 2024.”
Minister Humphreys also today secured Cabinet approval for the Social Welfare (Miscellaneous Provisions) Bill, which gives effect to the suite of measures contained in Budget 2024.
The 2024 Social Welfare Budget package is the largest in the history of the State and provides for a range of supports for pensioners, carers, people with disabilities and low-income families.
Among the Budget measures included in the Bill are:
Following today’s decision by Government, Minister Humphreys commented:
“The Social Welfare Bill gives effect to a wide range of important Budget measures.
“These measures were secured as part of the largest Social Welfare package in the history of the State.
“They will help to support our pensioners, carers, people with disabilities and low-income families with the ongoing cost-of-living pressures.
“I’m particularly pleased to have agreed an extension of Child Benefit to 18-year-olds in full time education, which I know will benefit a lot of families."
The measures approved by Cabinet also provide for the introduction of key structural reforms to the State Pension system from January 2024. These include:
Minister Humphreys added:
“The measures agreed by Cabinet today represent a significant structural reform of the Irish State Pension System.
“I am delighted in particular to secure approval for measures to ensure that long-term carers are provided with contributions for gaps in their social insurance record. This will help ensure that thousands of people, mainly women, who have spent time caring for loved ones will now be able to qualify for the State Pension.”
In addition, statutory sick pay will increase from three days to five days, as part of measures approved in today’s Bill.
The Personal Micro Credit Scheme provides for small-scale loans by credit unions to borrowers who have difficulty accessing low-cost credit. The Bill increases the maximum amount of a loan that Credit Unions can provide under the scheme, with the weekly Direct Debit transactions fees covered by the department. These measures aim to encourage take up of this scheme so that vulnerable people do not use money lenders.
Key features of the new Pay-Related Benefit scheme include:
The Programme for Government and the Economic Recovery Plan include commitments to consider a Pay-Related Benefit scheme for jobseekers. Specifically, the commitment is to:
“Consider increasing all classes of PRSI over time to replenish the Social Insurance Fund to help pay for measures and changes to be agreed including, …pay-related jobseeker’s benefit.”
Long-Term Carers Contributions will make it easier for a carer to qualify for a State Pension (Contributory) when they reach pension age. Any period of 20 years or more in which a carer is registered with the Department of Social Protection as providing full-time care for an incapacitated dependent, usually to a loved one, can be included in their pay-related social insurance (PRSI) record.
As per the PRSI Roadmap which has been agreed by Government, there will be incremental increases in all classes of PRSI (employer, employee and self-employed) over the coming years. These increases will support the retention of the State Pension Age at 66. They are as follows: