Budget 2025: No rationale to increase social welfare rates for long-term unemployed

Social Protection Minister Heather Humphreys has indicated a focus will be on increasing payment rates to carers, pensioners and people with disabilities

Ms Humphreys also signalled parents could be in line for a double child benefit payment this Christmas, describing the measure as being 'extremely popular' last year.

There is no rationale to increase social welfare rates for the long-term unemployed in the upcoming budget, Social Protection Minister Heather Humphreys has said.

Ms Humphreys has indicated a focus will be on increasing payment rates to carers, pensioners and people with disabilities, instead of across-the-board social welfare hikes.

She said she believed pensioners should be among the groups of individuals who must be prioritised in the budget.

However, she indicated social welfare increases this year may not be universal.

“I think given the fact that we’re at full employment, I’m not sure if there’s a policy rationale for increasing the payments on those who are long-term unemployed,” Ms Humphreys said.

She cited the introduction of pay-related jobseekers benefits early next year, which will increase rates of pay depending on an individual’s previous salary based on the number of years of PRSI contributions.

Ms Humphreys played down any prospect of a €20 increase in social welfare rates across the board, saying it would cost €1.5bn and leave other Government ministers without budget increases.

For those that are long-term unemployed, there are many, many opportunities for them to take up offers of work. My department works on an ongoing basis to help them go back into the workforce and help them upskill or retrain or go back to college.

“If they engage with those supports, it means they can get back into work.” 

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Sources within the Department of Social Protection have indicated that, if payments are not universally increased, it could provide more scope for higher increases on the likes of the State pension.

It is understood increases in welfare rates are likely to be in the region of between €8 and €10, with higher increases if not carried out universally.

Ms Humphreys also signalled parents could be in line for a double child benefit payment this Christmas, describing the measure as being “extremely popular” last year.

“I had many people saying to me that meant a difference because we had a few bob in our pocket before Christmas and it’s an expensive time for any parent,” she said.

“There’s very few that don’t need the child benefit. If you’re rearing a family, there’s a lot of costs involved in it and I think the child benefit is a very, very important payment that comes in every month.”