Government to raise minimum wage to €10.20

Finance Minister Paschal Donohoe sought the Government's permission to draw down €1.5bn from the rainy day fund ahead of Budget 2021. Picture: Sam Boal/Rollingnews.ie

Workers on the minimum wage will see their pay increase to €10.20 an hour from January. Social Protection Minister Heather Humphreys has secured government approval to increase the minimum wage by 10c per hour which she said will benefit 122,000 low-paid workers.

Separately, Tánaiste Leo Varadkar intends to establish a statutory sick pay scheme after consultation with unions. The Government has agreed to table a counter-motion to a Seanad Labour motion which calls for statuary entitlement to sick pay.

Meanwhile, the Cabinet has approved the text of a bill to allow a database containing the details of every mother and child who lived in the main mother and baby homes to be given over to Tusla.

The Commission of Investigation Mother and Baby Homes Records Bill 2020 will now be fast-tracked to make sure it is in place before the Mother and Baby Homes Commission concludes its work at the end of October.

As part of its investigation, the commission created a database of every mother and child to live in the main mother and baby homes. However, due to concerns of the transfer of personal data the commission felt it did not have legal grounds to hand the database over to the minister and in turn, Tusla.

Also, the Cabinet yesterday approved the Climate Action Bill which had been promised in the first 100 days under the Programme for Government.

Finance Minister Paschal Donohoe sought the Government's permission to draw down €1.5bn from the rainy day fund. The fund was set up to deal with exceptional circumstances and the Government will now use the money to help deal with the threat of Covid

Mr Donohoe said: ‘"We are in exceptional times. The fact that our public finances were so carefully managed in recent years put us in a good position and allowed us to provide for such contingencies. It is appropriate now that we release the funds that are at our disposal, as we work to meet the needs of our people, support businesses and strive towards stabilising our economy once again.”

Mr Donohoe also intends to bring a Dáil resolution later this year not to transfer €500m into the fund with a spokesperson for the minister stating it "wouldn't make any sense to deposit into it if we're drawing out of it."

Meanwhile, Minister for Public Expenditure and Reform Michael McGrath brought a memo to the  Government on the preparations underway at ports and airports for Brexit.

While Dublin Airport and Rosslare Port in Co Wexford are on track and have enough capacity for extra customs checks, an extra inspection facility is needed at Dublin Port.

Health Minister Stephen Donnelly brought forward a memo on a memorandum of understanding between Ireland and the UK, to ensure continuity of healthcare arrangements, on a reciprocal basis post-Brexit. The arrangements will cover access to planed treatment and necessary healthcare.

Cabinet also heard that work on a second Brexit Omnibus Bill is  underway.