Press release
Budget 2022: Minister Humphreys delivers Social Protection Package of over €870 million
From Department of Social Protection
Published on
Last updated on
From Department of Social Protection
Published on
Last updated on
Minister for Social Protection, Heather Humphreys TD has today announced a Social Welfare Budget package worth €558 million for 2022. The Minister also secured agreement for a 100% Christmas Bonus Double Payment to be paid in December 2021 at an estimated cost of over €313m.
For the first time in three years, the package provides for across-the-board increases to weekly payments to pensioners, people with disabilities, carers, lone parents and working age people with additional increases for qualified adults and dependent children.
All weekly increases take effect from the first week of January 2022, with the exception of the Fuel Allowance increase which is effective immediately.
Minister Humphreys also secured almost €185m to fund a series of targeted measures, with a particular focus on carers, lone parents, low-income families and people with disabilities.
Among the measures included are significant changes to the Carers’ Allowance Means Tests – the first time there have been changes to the Carer’s mean test in almost 14 years.
In 2022, an overall €23.3 billion will be spent on Social Welfare measures.
Announcing the Social Welfare Budget, Minister Humphreys said:
“This year’s Budget represents the largest social welfare package in 14 years.
“For the first time since 2019, we are in a position this year to increase the maximum rate of all core weekly payments – benefitting pensioners, widows and widowers, lone parents, jobseekers, carers and people with disabilities.
“The across-the-board increases is a recognition of the hugely difficult year that our citizens, young and old, have endured due to Covid-19.
“It also reflects the fact that cost of living is rising and that we as a Government feel it is right to respond in terms of increasing welfare supports.
“I am glad also to announce that the general increases we are announcing today will come into effect in January.”
Minister Humphreys added:
“Over the past number of years, we have relied on evidence from studies from the likes of the Vincentian Partnership to make targeted increases in those payments that are shown to have the greatest impact in reducing poverty.
“Today, in addition to the general increases, I am really pleased to be in a position to continue that policy with a package of around €185m in targeted measures.
“For example, I am increasing the Fuel Allowance and the Living Alone Allowance as targeted supports aimed at helping those individuals who are most in need.
“I am also very conscious of people with disabilities, carers and lone parents. A number of the measures in this Budget package will provide them with additional supports.
“I am pleased to be the first Minister for Social Protection in some 14 years to make changes to the means test for Carer’s Allowance. The significant changes I am announcing today will mean more Carers will now qualify for the payment while those in receipt of a reduced payment will also see increases.”
In the area of caring and supporting people with disabilities, Minister Humphreys has secured a measure that increases the income disregard for the Carer’s Allowance to €350 for a single person and to €750 for a couple household.
The capital/savings disregard for the Carer’s Allowance means assessment is being increased from €20,000 to €50,000, aligning it with that which applies for Disability Allowance. This means more individuals will qualify for Carer’s Allowance.
People with disabilities who are working will benefit from an increase in the earnings threshold from €350 to €375 before their income is fully assessed for their Disability Allowance payment. People receiving Disability Allowance will also see an improvement in the general means disregard as it will increase from €2.50 to €7.60 per week.
The period of time during which Domiciliary Care Allowance will be paid to parents or guardians of children, who go into hospital is being extended from three to six months with effect from January.
The Budget package also provides significant supports to help householders with the cost of heating and other energy bills.
The Fuel Allowance will increase by €5 to €33 per week, or €924, with immediate effect from midnight. This increase will be paid from early November and arrears due will be paid subsequently.
The weekly means threshold is also being increased by €20 from €100 to €120. This represents a 20% increase in the current means threshold and will enable more people to qualify for this support.
Jobseekers receiving Jobseeker’s Allowance or Supplementary Welfare Allowance will be eligible for the Fuel Allowance if they are unemployed for 12 months (down from 15 months).
Some 230,000 pensioners and people with disabilities who are living alone will see their Living Alone Allowance increase to €22 per week from the first week of January.
The Hot School Meals programme, which has proved to be extremely successful, is being extended to a further 81 DEIS schools and will be available to an additional 16,000 schoolchildren. From January, this brings the total number of schools participating in this Programme to 297, benefiting 55,650 schoolchildren.
Approximately 140,000 families who receive the annual Back to School Clothing and Footwear Allowance will receive an extra €10 for each child from next July.
This week, we have seen the number of people receiving the Pandemic Unemployment Payment fall to its lowest level at just over 97,000 as employers continue to re-open for business and take on employees.
The Working Family Payment is an in-work support available to help working families on low incomes. This Budget is providing an increase of €10 in the weekly income thresholds for this payment, regardless of the family size. Essentially, it will benefit these working families who are receiving this payment by an additional €6 per week.
The Parent’s Benefit will increase to €250 from January and in line with the EU Directive, it will be paid for 7 weeks from July 2022. Each parent can avail of the seven weeks of benefit during the first two years after their baby is born or adopted.
Presently, young people aged between 25 and 28 who wish to avail of the Department of Social Protection’s Treatment Benefit scheme i.e. dental and optical must have a minimum of 260 weeks or five years PRSI paid contributions on their social insurance record. From June 2022 this age group will only be required to have 39 weeks PRSI paid contributions.
Minister Humphreys is also introducing a new €500 Grant under the Treatment Benefit scheme to support people who suffer from conditions such as alopecia or those undergoing chemotherapy with the purchase of wigs and hair pieces. This is in recognition of the significant impact sudden premature hair loss can have on a person’s confidence and mental health.
The list of schemes under which farmers receiving Farm Assist may avail of the €2,540 disregard is being extended and will include measures that will have a positive environmental impact.
The Department of Social Protection’s estimate for next year includes over €185 million in additional funding under Pathways to Work.
Minister Humphreys commented:
“Just three months ago, we announced the Government’s Pathways to Work 2021-2025 strategy designed to help people return to work as Ireland recovers from COVID-19.
“This national employment strategy, which contains 83 commitments across all Government Departments, builds on the Government’s Economic Recovery Plan in kick-starting a jobs rich recovery, ensuring there are 2.5 million people in work by 2024.
“The strategy will remove barriers to employment, provide tens of thousands of training and education places, significantly enhance the Public Employment Service, provide incentives to employers to take people off the Live Register, and deliver a special package of supports for young people.
“My Department’s estimate for next year also includes significant investment in supports to enable people get back to work. Over €185 million in additional funding under Pathways to Work is being provided for new employment scheme places, additional employment service capacity, education and training supports, and the new Work Placement Experience Programme.”
Minister of State Joe O’Brien commented:
“I am pleased to see that core weekly payments, including those for CE, Tús and the Rural Social Scheme have increased, but additionally I am particularly pleased to see increases in targeted measures such as the Living Alone Allowance and the Qualified Child Payment.
“This Budget will provide supports for the most vulnerable people in our society through measures such as the increase in the Fuel Allowance, the extension of the Hot School Meals and the Back to School Clothing and Footwear Allowance.
“These measures, among many others in Budget 2022, are an important step towards achieving the target set out in the Roadmap for Social Inclusion to reduce the rate of consistent poverty to 2% and tackle social exclusion.”
Christmas Bonus
Minister Humphreys also announced today that the Social Welfare Christmas Bonus will be paid to 1.4 million people at a rate of 100% again this year.
“I am pleased to have secured Government approval for the payment of the social welfare Christmas Bonus again this year. It will be a 100% Bonus and will be paid in early December. Recipients of long-term social welfare payments including pensioners, people with disabilities, carers and lone parents will receive the Bonus.”