Sunday 11 December 2016

Dole payments to increase in line with inflation under new proposals - Leo Varadkar

Niall O’Connor Political Correspondent

Published 21/07/2016 | 12:03

Linking all welfare payments to inflation would cost in the region of €1.2bn over four years
Linking all welfare payments to inflation would cost in the region of €1.2bn over four years

Leo Varadkar has proposed radical changes to the social welfare system, which include linking welfare payments to the cost of living.

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The measure, if implemented, could result in the dole and State pension increasing year on year in line with the rate of inflation.

Mr Varadkar wants to introduce a statutory mechanism whereby welfare payments would be index linked.

The measure has been introduced in many EU countries such as Norway, Sweden and Belgium.

It is aimed to ensure all citizens enjoy a basic standard of living - however the proposal is likely to be contentious.

Linking all welfare payments to inflation would cost in the region of €1.2bn over four years.

In practical terms, it would result in an increase of around €3 per week for the average person on the dole.

Mr Varadkar is due to detail the plan at the MacGill summer school in Glenties.

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