Minimum wage and social welfare rates should be increased, report says

The organisation, which provides independent social analysis and policy proposals, says the measures are necessary as the cost of living continues to increase.

“Social Justice Ireland believes Budget 2023 should be guided by one core principal, that the measures adopted prioritise the protection of the poorest in Irish society,” says the organisation in its report, launched today.

“To this end, Budget 2023 should prioritise continued strategic investment in long-term infrastructure projects focused on social housing provision and achieving our committed climate change targets alongside targeted cost of living measures.

“The fiscal context for Budget 2023 is one of the most difficult in some time due to an uncertain social and economic outlook. The Budget must respond to the current cost of living challenges but also recognise uncertainties regarding the ongoing Covid-19 pandemic and its legacy effects, geopolitical instability as a result of war in Ukraine, and an ongoing cost of living crisis through 2022 and 2023.”

Speaking on Newstalk’s Breakfast Briefing this morning, Social Justice Ireland director Sean Healy said the increases were necessary.

“In the last three budgets, two of them gave no increase whatsoever to core welfare rates and the other one, the most recent one, gave an increase of €5.

“That means in effect that the actual value of the welfare payment has fallen by almost €20 and that doesn’t take into account inflation in 2023. So, a minimum increase of €20 is a must.”

He added that the minimum wage should also be increased. “It is not just the €20 increase in core welfare rates, there should be a living wage of €12.90 per hour introduced as well.

“The minimum wage should in fact be moved directly now to the living wage at €12.90. Not just at €12.13 or €12.17 as was being suggested the other day by the Tánaiste.”