Welfare row: Taoiseach moves to dismiss proposals for two-tier system

Taoiseach Micheál Martin at the Expo Pavilion, Osaka in Japan. Speaking in Japan, Mr Martin also said there is a need to increase the number of crèche and childcare spaces 'fairly quickly'.

The Taoiseach has moved to dismiss proposals for a two-tier system of welfare that would see those on unemployment benefits receive a lower increase than others.

It comes after Tánaiste Simon Harris said there is “merit” in unemployment benefit not rising at the same rate as other social welfare payments, such as pensioners.

But speaking in Japan, Micheál Martin said: "I don't like drawing distinctions, and I've never been into the characterisation of people on welfare. I've never been into that politics."

Differences of opinion around increasing social welfare payments emerged in the last Government, after then Fine Gael social protection minister Heather Humphreys pushed for a rise in pension payments but no increase for those on unemployment benefit.

However, Mr Martin said he "thought it was a false row the last time".

He said people may have read speculation around this measure, but "it was never put to us the last time, in terms of substance, in terms of presentation, so I would have a similar view. We will see what transpires."

Child poverty

Mr Martin said the coalition will have to "make priorities" around how budget allocations will be spent across multiple areas, but he stressed that a focus should be on lifting children out of poverty.

"My view is that we have, over the last two years, committed to doing something significant on child poverty, to turn the dial around on child poverty. And that's where I would like to see a targeted set of measures emanating from the Department of Social Protection in relation to the child poverty question."

Turning to childcare measures, Mr Martin said: "There will be negotiations leading into the budget. We can't do everything at once, so we will endeavour to prioritise and continue the progress we've made in recent years. 

"We've made very good progress on childcare, but we need more places, so the access issue and the number of places is also important as well as affordability."

He also said there is a need to increase the number of crèche and childcare spaces "fairly quickly".