Social welfare payments could undergo significant changes in the coming years under new plans, it has emerged.
The first proposed amendment would see entitlements linked to a person's previous income before they lost their job, the government has indicated.
Minister for Social Protection Heather Humphreys confirmed that her Department if currently looking at a "pay-related benefit".
The Minister was responding to suggestions that the level of Jobseeker's Allowance should be raised following the announcement yesterday that the Pandemic Unemployment Payments (PUP) is set to be slashed later this year.
Speaking to reporters at Government Buildings, Ms Humphreys said: “I think one of the things that we have learned from the pandemic is that when people suddenly lose their jobs, we don't want to see that cliff edge income drop because they have entered into commitments commensurate with their income.
“So we do need to avoid that drop, and I think that's where we can look at - and I've asked my officials to look at pay-related benefits and I think that we need to do that.
“My officials are looking at that specifically.”
And Minister for Public Expenditure Michael McGrath also signalled there could be a reform of the social welfare system in Budget 2022 for thousands of widows, carers and people on disability benefits.
Mr McGrath said the government is “conscious” that it has been over two years since there has been any change in social welfare rates for certain groups, and highlighted the following five in particular: widows, carers, people on disability allowance, illness benefit and those with an invalidity pension.
He said thousands of people are on a much lower level of the weekly social welfare than the top PUP rate of €350.
He said: “I am sure Minister Humphreys will be keen to have some level of social welfare package in the Budget in the autumn and that’s something we’ll be discussing over the weeks and months ahead.”
Ms Humphreys confirmed that people will drop back onto jobseeker's payment once their Pandemic Unemployment Payment is weaned back to €203.
She explained: “There are three payments that at the minute, there is €350 to €300 and €250.
“So on September 7, the €350 payments will reduce to €300, the €300 will go to €250 and the €250 will then go to €203.
“For those people who are currently on €203, we will transition them to the standard jobseeker’s payment.”
Ms Humphreys said that permanent job losses are expected across a number of different sectors including retail given the “trend is moving to online purchases” and there will be job losses in the music and arts sector.
She said the government has provided the support of almost €8 billion and the announcement on the PUP was giving people clarity.
