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In the coming weeks pensioners, carers and people with disabilities will be among 1.4 million people who begin receiving a double payment in their benefits.
These payments have been welcomed by the Society of Saint Vincent de Paul (SVP) but they say that they will only provide temporary relief in the immediate term
The Society says that households need to budget on a weekly basis and need an adequate weekly increase in social welfare payments to reflect this. Once the temporary measures are gone households will continue to struggle to get by on a weekly basis.
“While prices are now increasing more slowly, the cost of living crisis has not gone away and prices for essential goods and services are now significantly higher than they were in 2020. In the last four years there has been a cumulative increase of 16.8% in the costs of meeting a Minimum Essential Standard of Living, the amount needed to make sure people can afford a basic but decent standard of living. The real value of social welfare payments, the fuel allowance and child benefit have been eroded by the increasing costs of essentials like food, rent and energy. “
SVP says that for the third year in a row Budget 2025 emphasised the use of lump sum temporary measures to support people with the cost of living crisis.
It says that the increase in the National Minimum Wage (NMW) is welcome. But even with this increase the NMW remains €1.25 per hour below the real Living Wage which is based on the actual costs of the goods and services needed for a basic and decent standard of living.
SVP also points out that Budget 2025 had no permanent increase in the Fuel Allowance or Child Benefit and inadequate increases in weekly social welfare rates and the Child Support Payment (formerly Qualified Child Increase). “Inexplicably, the income thresholds for the One-Parent Family payment (OFP) were not increased in line with the rise in the National Minimum Wage (this was adjusted for the Working Family Payment), the impact of this is that lone parents receiving the OFP can work fewer hours before their payment is reduced” it said.
In summary SVP says that overall the measures in Budget 2025 have not tackled the underlying insecurity for people in poverty, who are often one unexpected bill or rent increase away from a crisis. It welcomes free school books across the education cycle, and acknowledge the substantial sums being allocated to households through the various lump sum, once off payments and supports.
“However support from government for the increased cost of living appears to be stuck in a short-term crisis response and instead needed to offer stability over the longer term.” it says.
