IRELAND: Social Welfare will increase payments in October - Leo Varadkar

Social welfare recipients can expect to see an increase in payments in October, Tanaiste Leo Varadkar has indicated. The Government is currently under pressure to give further financial assistance to households across the country who are facing soaring bills due to the high cost of living and a rise in inflation.

When asked if increased social welfare payments may be introduced instantly once the Budget is announced, Mr Varadkar said: 

“That is possible. The Budget is announced on Budget Day and then there's the Finance Act and there's a social welfare act as well. But actually a lot of the weekly rates can be increased by ministerial order so it does not require legislation to go through the Dáil. So that can be done more quickly. The tax measures, for example, and you know, from previous budgets before sometimes tax measures are done on the night, and you'll know that in the Budget last year, we actually brought in the fuel allowance increase right away so that can be done and that's certainly an option. ”

The Fine Gael leader wouldn’t be drawn on whether social welfare recipients would get more than last year’s Budget. However, he said last year’s Budget was based on inflation that was at the time running at 2% but inflation is now running at almost 8%. Social welfare Ireland said Fresh calls per week increase due to high cost of living

He added: “So I think it stands to reason that the pension increases and social welfare packages will have to be greater in 2023 than they were this year. That’s only right. The cost of living is rising and the economy's in good health. We’ve got more people at work than ever before. Trade is breaking old records and the public finances are in pretty good nick. So you know, when the Government can protect people's living standards, it should seek to do so.

Despite stating last week that interim cost of living measures could be introduced before October due to the rising cost of living crisis, Mr Varadkar appeared to row back on such plans. It comes as Finance Minister Paschal Donohoe and the Taoiseach ruled out any movement before October.

When asked about the u-turn, Mr Varadkar said: “Well, we've taken action already, as you know, so we've implemented 4.4 billion euros worth of measures to help with the cost of living from reductions in taxation, excise VAT, to assisting people on the lowest incomes in particular with an increase in the fuel allowance.

As you know, we have already taken action, so we have taken steps worth 4.4 billion to help reduce the cost of living from tax and excise reductions. To increase VAT and fuel allowance especially to help the lowest income people. So far this year we have already intervened  2.4 billion. We really want to focus now on a package for Budget Day. But they are measures that can take effect, for example, in October, then in the days after the budget, and others that will take effect next year.

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