Job Losses
1. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Trade and Employment for an update on the steps he is taking to protect jobs in the technological sector; if an audit of job security across the sector has been undertaken; and if he will make a statement on the matter. [22001/25]
I wrote to the Minister in March following the announcement of 300 job losses in TikTok to ask whether he would commission an audit of job volatility in the technological sector. As it stands today, almost 5,000 staff at Intel are in limbo following the company's announcement of global cuts of 20% to its workforce. I hope, like the Minister, that all of those jobs will be retained. Has he commissioned an audit of jobs in this sector?
I thank the Deputy for her question. Although the technology sector has undergone a period of sustained growth for more than 20 years, modest contractions have occurred recently. Possible US trade actions on semiconductors and other challenges have also created a moment of international uncertainty in the sector. In response to these geopolitical and trade challenges, the Government has agreed to expedite its action plan for competitiveness and productivity. Furthermore, several short-term measures, such as enhancing international trade promotion, addressing business costs and improving energy infrastructure will bolster the resilience of technology firms and support their competitiveness.
Where job losses are announced by any IDA Ireland client company based here, our first concern is for staff members and their families impacted by such decisions. My Department’s main aim, with the support of our enterprise development agencies, is to assist, where possible, in helping those impacted to find alternative employment through a number of measures, including: the provision of a detailed skills profile for the employees that can be shared with other potential employers; identification and connection with employers who may be hiring across the locality or a wider region; information sessions by the Department of Social Protection's Intreo office on social welfare services and employment support services; identification and provision of training and further opportunities for employees; and exploring opportunities for people to start their own business through local enterprises offices, LEOs, and Enterprise Ireland.
Working with the IDA and Enterprise Ireland, our objective is to sustain and create further employment in the technology sector. The programme for Government sets out a range of commitments, including sectoral strategies that will support the sector. To this end, I will launch the national semiconductor strategy this month, which will be a clear signal of Government support for this economically and strategically vital sector. As part of the development of the strategy, my Department undertook a comprehensive mapping exercise to identify Ireland’s key semiconductor market actors, both indigenous and multinational, which will further inform our engagements with the sector, both domestic and multinational.
The threat to jobs in Intel and the job losses in TikTok come on the back of job cuts in Meta. There are reports of 300 jobs at risk at Carelon Global Solutions Ireland in Limerick. This company, as the Minister will know, provides digital integrated solutions for the healthcare industry. It has talked about its decision to consider its future in Ireland, which comes after a review of its business operations and an examination of the changing healthcare landscape globally. Is the Minister working with the staff and management at Carelon Global Solutions in this regard? Has he explored alternatives to these proposed layoffs, which would not only be a severe blow to the individual workers but have a huge negative impact in Limerick? While I welcome the semiconductor strategy, I ask for it to be implemented on an all-island basis. There are huge opportunities in the semiconductor space.
In all the sectors the Deputy referenced, we are absolutely responding with significant policy interventions, particularly our action plan on competitiveness. While there was a huge increase in growth in the technological sector of approximately 15% or more during the pandemic period, we have seen a recalibration in some areas. While it is difficult for families to face news of uncertainty, the critical thing is there are huge opportunities. The sector is growing globally, which is incredible in an Irish context, with so many new companies, particularly in the areas of artificial intelligence and generative AI. There are huge opportunities in this regard for Ireland as a world leader, particularly in a European context.
We have a strong basis for growth. The IDA strategy to 2029 specifically highlights the areas of digitalisation and semiconductor activity. Those areas will be key to sustaining our employment levels into the future. We are doing a number of measures, such as our action plan for competitiveness and our new semiconductor strategy. We updated our AI strategy last November, which is important, in partnership with industry. We have many significant research partners in tertiary education that are yielding significant results we can see on the landscape
There is a real urgency around this. The Minister did not address Carelon Global Solutions and what is being done there. I take it he is in there, talking to staff, and that he has SkillNet Ireland in there as well to work with these companies and to examine available alternatives in the immediate term. The question the Government must answer is where the next decade of jobs is coming from. We need a calm, strategic response in this regard. What we do not need, in this period of economic instability, is to row back on commitments to pension enrolment, wages and sick leave. The staff, as the Minister rightly said, must be front and centre. All of these staff members have families who are living and trying to cope with in the midst of the cost-of-living crisis. We can only create a sustainable economy and society by addressing the core issues, namely, our infrastructure, the deficits in water services, renewable energy and enhancing the communications network.
In respect of Carelon Global Solutions, we are working closely with the company. There is an established protocol in the Department for any company that is encountering difficulty or making announcements. We are the first responders in there working with them, providing skills and ensuring they have the pathway to further training and redeployment. That is a big challenge in some of the at-risk sectors. IDA Ireland is very clear on doing a risk profile. We try to get investment into such companies early and foresee the pressures that are coming. Research and development grants we have provided to a number of companies really cement the next product line and embed the next level of patents and IPs. That will be critical for our future. We have done that on a number of occasions.
In an economy at full employment, there are always pressure points. We look at the risk profiles, which are so important to us. This is one thing on which I challenge the IDA regularly. We need to foresee the problems in the next six, eight, ten months or two years and try to see what we can do now to embed that employment into our economy. We are very much to the forefront in doing that and the next strategy really sets that out. I particularly wish to mention the €7.5 billion in research and development investment by the IDA over the next five years, which will mean a 400% increase in research and development investment over the past decade.
There has been an agreed change to the order of Priority Questions. We will move to Question No. 6 in the name of Deputy Joe Neville.
Programme for Government
6. Deputy Joe Neville asked the Minister for Enterprise, Trade and Employment when it is envisaged that a new whole-of-government action plan on competitiveness and productivity will be finalised in line with the programme for Government; and if he will make a statement on the matter. [21913/25]
When is it envisaged that a whole-of-government action plan on competitiveness and productivity will be finalised in line with the programme for Government? As the Minister knows, there is obviously a lot of news happening, some of which has just been discussed, in respect of the different issues with the economy. Will he go through that?
I thank the Deputy for his question. Ireland is currently a strong competitive global economy. This performance is reflected in our exceptionally strong economic performance in recent years. However, the international context is rapidly changing and we recognise, as do many businesses, where our indigenous and foreign direct investment, FDI, sector are concerned, that they are facing increased challenges.
In recognition of these challenges facing Ireland, the current programme for Government committed to the publication of a new whole-of-government action plan for competitiveness and productivity by January 2026. The Government has, however, accelerated this timeline, with a draft of the plan to be considered by Ministers at a competitiveness summit in July. This plan will cover industrial policy, reducing the cost and regulatory burden on business, investing in infrastructure, digital regulation and reform, energy reform, international trade and research and development and innovation.
Over the coming weeks, the National Competitiveness and Productivity Council will finalise and submit its Ireland’s Competitiveness Challenge 2025 report to Government. This work will feed into the development of the action plan. Alongside this, my Department is undertaking consultation with stakeholders, including other Government Departments, to ensure that the action plan is evidence based and reflects the issues impacting Ireland’s competitiveness.
Given the heightened level of international uncertainty, the overarching objective of the action plan will be to focus on matters within our control by way of policy changes that can make the domestic economy more competitive and resilient to shocks. That is one of the critical issues we were, as a Government, very much aware of. We are the most competitive economy in the eurozone and fourth under the Yearbook of International Organizations but our infrastructure offering is coming under pressure. We need significant investment in energy capacity in the future. We need to ensure our family businesses are operating at the lowest cost base possible and also bring the Draghi report to the heart of government in a European context where we see the new competitive compass which provides a huge amount of opportunity to cement industries here in our economy.
I thank the Minister for his reply. It is great the timeline has been brought forward. The Minister is conscious of time, no more than myself, and therefore, it is a real positive that July is the new date. While the Minister and his team are doing significant work, there are challenges. As someone who has worked as an accountant with both large Irish multinationals and many smaller businesses, I deeply understand the difficulties businesses face and how marginal changes in costs, such as some of those costs we have seen, or indeed regulation, can tip the scales, especially in sectors where Ireland needs to compete globally.
Something of which I am very conscious is the growing concern locally in Leixlip about the recent reports of possible job cuts at Intel, not just in Ireland but across the company worldwide. This site has been a cornerstone of high-value employment and innovation in Ireland for decades. Any uncertainty around its future is felt far beyond the gates of the campus. It will be felt as far away as Mullingar and all those other places. It impacts local businesses, local schools and everything else. This is a key focus of mine.
I thank the Deputy for his question. He has been to the forefront in engaging with me in connection with Intel and it being significant in his locality. While I note comments by its chief executive, Intel’s Fab 24 is the most advanced manufacturing facility in Europe. We in Ireland are proud to have Intel here. As a Government, we will do everything we can to support it into the future. The new 7 nanometer, nm, chip it manufactures there is the lowest chip in Europe.
In the wider context, at this point, we have only 8% of the market share in semiconductors. If we look at our economy advancing across products like fridges, phones and electric vehicles silicon chips are everywhere. I see a very bright future for Intel and we will work very closely with it. As the Deputy quite rightly pointed out, it is so important we get our competitive action plan right to the heart of Government by July. We have now established a small-business unit in the Department to make sure we are protecting family businesses, with which I know the Deputy has worked closely in his profession as an accountant. We are very focused on reducing costs, sustaining businesses to keep them viable and keeping good conditions for workers.
I thank the Minister. Intel's situation underscores how crucial it is that we address the systemic issues. In other Departments, we have things like planning delays, which can cause uncertainty. Energy prices, which the Minister alluded to earlier, are a key issue not only for small businesses but also for very large businesses like Intel. Energy prices are above many EU rates, so that is something of which we have to be very conscious. We all know that we have to speed up infrastructure delivery and I know that it is a significant part of the Government's plan in the next four years. There has been real focus on that.
We must also factor in other issues such as cybersecurity threats and the resilience of supply chains. I raise these points not as a criticism but as a colleague who wants to work with the Minister to ensure that Ireland remains a top-tier business destination for investment and innovation. As a newly elected TD, I want to work with the Minister and do the best I can. We can work on all of these issues.
I thank my colleague, Deputy Ged Nash, for doing the swap and for facilitating that this morning.
I thank Deputy Neville. He is quite right to point out those key areas. As a Government, we are very committed to unblocking so many of the challenges to infrastructure delivery. The Deputy will see the decisions made by Cabinet in that regard. Commencing the planning Act will be key and central to delivering that pipeline. There are huge opportunities here, as I mentioned, through the Draghi report and the European Commission's competitive compass. For many companies, regulation is a problem. We are bringing through the response to the Omnibus Proposal and the corporate sustainability reporting directive, CSRD, which will take about 80% of smaller companies outside of the scope. It is important in terms of a regulatory response that we have proportionate regulation for many of our SMEs. The small business unit will yield significant results as well.
The Deputy is quite right about energy. We have to face up to the fact that in the next decade we will need more investment in our grid than we have since its creation. This will be very significant in the context of the review of the national development plan. AI and generative AI requires about 2% of worldwide energy production. It is a huge energy user. As an economy, Ireland has to ensure that it has the infrastructure to support and underwrite the level of employment and the high-quality jobs in the economy that the Deputy is quite rightly fighting for.
Low Pay
3. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Trade and Employment the reason previous commitments made by the Government on workers’ rights issues are not being honoured; and if he will make a statement on the matter. [22002/25]
The Government made commitments on introducing the living wage, on enhancing paid sick leave entitlements, on abolishing the subminimum rates of youth pay, on increasing the minimum annual remuneration for employment permits and on pension auto-enrolment. The Government has reneged on all of these progressive measures. I know the Minister will say that these are just delayed but the word used is "postponement". Without concrete timeframes, workers fear that "delay" really means "deny".
The Government is committed to promoting positive working conditions in Ireland and ensuring access to high quality jobs. However, it is also important to maintain a regulatory environment to allow businesses to remain viable and indeed to thrive. The programme for Government outlines a strong, forward-looking enterprise and fiscal framework, prioritising economic and employment growth. The Deputy will be aware that extensive improvements to workers' rights have been implemented in recent years, including new legislation on tips and gratuities, introducing the right to request remote work, as well as a new public holiday to celebration of St. Brigid’s Day, legislating for employer-paid statutory sick leave, banning zero-hour contracts, enhancing the protection of employees facing collective redundancies due to insolvency, as well as substantial increases in the national minimum wage. Between 2020 and 2025, the minimum wage has increased from €10.10 to €13.50, representing a nominal increase of 33.7%. The Employment Permits Act 2024 updated the employment permit system, introducing a new seasonal employment permit, which is being piloted this year. This year will also see the expansion of the regime to reduce the gender pay gap.
The Employment (Contractual Retirement Ages) Bill 2025 was published on 1 April 2025 and successfully completed Second Stage in the Dáil on Tuesday, 8 April 2025. The Bill, once enacted, will deliver a new employment right allowing, but in no way compelling, an employee to stay in employment until the State pension age of 66. The Sectoral Employment Order (Construction Sector) 2024 comes into effect on 1 August 2025 to reflect higher rates of pay for craft and general constructions workers. Pay will increase by 3.4% in August 2025 and again by 3.2% in August 2026.
What I wanted was a firm commitment that the onslaught on ordinary workers would be ended. The Minister of State has not provided me with that. Workers on the minimum wage are looking forward to the living wage, as was committed to. When they hear, in the past week, a wage of €430,000 talked about for a housing tsar to replace the housing Minister, it just does not sit right with people who are in the midst of a cost-of-living crisis. The workers here did not cause the global uncertainty and they cannot be made scapegoats for Government failures. The Government cannot use the uncertainty about tariffs as an excuse to row back on promises to workers. Backtracking on the minimum wage commitments does not make economic sense. The sectors that rely heavily on the minimum wage workers are, by and large, not exporters but rather trade domestically.
I appreciate where the Deputy is coming from on the issue she has raised. However, Government is very conscious of the cost of doing business with the increases in the minimum wage over the past number of years. Since 2022 we have seen a 32% increase up to the current rate of €13.50. However, Government is committed to continuing to increase the minimum wage but over a longer period. We sought approval, which was granted, to extend the living wage out to 2029. Once the report of the Low Pay Commission comes before us in July, we will take the recommendations on board.
This Government is committed to ensuring that we have protection for workers. They deserve fair wages. The previous Government and Fine Gael introduced statutory sick pay leave. This was the first of its kind to protect workers on leave. It will be maintained at its current rate of five days. Further to that, illness benefit will kick in on the sixth day. That will provide additional protection. As I said in my earlier contribution, we have committed to protecting workers through many pieces of legislation, as I referred to earlier, and we will continue to support workers while also striking a balance to ensure that businesses remain viable.
Going after workers in these sectors will not address our international competitiveness, nor will it help sectors on the front line to deal with the impact of tariffs. All it will do is leave ordinary workers worse off in the middle of a cost-of-living crisis. We have one of the highest rates of low pay in the EU, with one in five workers being low paid. This figure has remained relatively unchanged after decades of broken promises from Fianna Fáil and Fine Gael. Yesterday, the ESRI published research it undertook on behalf of the Low Pay Commission. The findings of this research show that the percentage of minimum wage jobs being advertised is growing. In 2024, 15% of all hourly paid job vacancies were for minimum-wage jobs. There is a huge variation in the incidence of minimum wage employment across the State. In Dublin, approximately 7% of jobs advertised were for minimum wage workers. In Donegal, the figure was 20%. This means that in real terms, workers in Donegal and the west earn less.
This obviously has a knock-on effect across the regional economy. The Government's failure to introduce a living wage leaves low-paid workers extremely vulnerable. There are many ways to support businesses but this is not one of them. We are in a race to the bottom here.
To clarify, this Government is committed to the introduction of a living wage. That will happen over an extended period. Again, we are committed to taking the recommendations of the Low Pay Commission on board once we receive its report. That will inform the discussions in preparation for the budget later this year.
Our Department takes the conditions of workers very seriously. We are guided by evidence. Our decisions are based on facts. We have engaged with the ESRI and the Irish Government Economic and Evaluation Service, IGEES, on detailed research with key stakeholders. We know that across some of the vulnerable sectors in hospitality, food services and retail, there are real cost pressures in respect of labour, the regulatory burden and energy costs. We want to protect the viability of these businesses and the livelihoods of those who are employed in them. These sectors account for more than 70% of all jobs throughout the country. We need to protect them and ensure that is done in a very responsible manner.
Industrial Development
4. Deputy Seamus Healy asked the Minister for Enterprise, Trade and Employment the number of IDA-sponsored client visits to the IDA land at Ballingarrane, Clonmel in 2023 and 2024; the steps the IDA will take to find an enterprise for the site; and if he will make a statement on the matter. [21941/25]
This question relates to the IDA-owned site at Ballingarrane in Clonmel. Will the Minister outline the number of IDA-sponsored client visits to that site at Clonmel in 2023 and 2024? What steps will the IDA take to find an enterprise for the site?
I thank the Deputy for his question. The IDA has a landholding of 20 ha at Ballingarrane science and technology park in Clonmel, County Tipperary, and, in partnership with Tipperary County Council, has lodged a planning application for a 10,000 sq. m advanced building solution on a site area of approximately 3.4 ha. This application is currently proceeding through the planning process. IDA Ireland continues to work to market the site and proposed planning permission at Ballingarrane to potential new and existing investors through the agency’s network of overseas and regional offices. In this regard, the IDA, together with Tipperary County Council, has prepared and shared marketing materials, including a brochure and a promotional video, via the IDA Ireland website.
On site visits, data is only available on a county basis. I am advised that there were eight visits to County Tipperary in 2023, two in 2024 and one, to date, this year. I should indicate, however, that site visits are only one measure of a company’s interest in a particular location and may not necessarily be a true measure of the overall level of FDI activity in a region or county. For example, 70% of FDI won for Ireland by the IDA in 2024 came from its existing client base rather than new companies. Potential clients visiting Ireland may visit more than one county and may return to a location more than once. Also, the figures that represent individual visits are not necessarily indicative of the number of companies that have been visited.
I also remind the Deputy that the final decision on where to locate an investment is always made by the client company and not by the IDA. It can take many years to convert an initial site visit into a project approval.
Ballingarrane estate was purchased in 2001 by South Tipperary County Council, in what was a far-seeing decision, to provide a vital piece of infrastructure for industrial development, not just for Clonmel and south Tipperary, but also for the surrounding areas of west Waterford, east Limerick and west Kilkenny. It comprises 270 acres, 50 acres of which are owned by the IDA, as the Minister said. There is already a successful development on the site. Questum is an enterprise acceleration unit operated by the Technological University of the Shannon. That has been very successful in employing approximately 200 people in 15 different enterprises. It is vital that a significant anchor industry be secured for the site. I am aware of the plans and the planning application for an advanced factory solution. I also understand, as the Minister said, that the IDA is marketing the site by way of a promotional video, but 25 years is far too long to wait for an anchor tenant for a site that is vital for essential future industrial development in Clonmel and its surrounding areas.
I will point out that we have seen a significant increase in IDA activity and employment in the mid-west region - approximately 16% over the past five years. The Deputy will know of very important client companies in his region, including Boston Scientific and Waystone, where there has been a new investment of 100 jobs. Working very closely with my colleague, Michael Murphy, we are doing a huge amount of work on delivering infrastructure to the region that will support the growth of employment. That is why we see 5,589 people, which means 5,589 families, who go to work every single day in IDA client companies in County Tipperary. There are approximately 27,968 such jobs in the mid-west region. That is why the IDA strategy out to 2029 focuses on delivering on the investment that is currently there. As I said in my contribution, the amount that comes from existing clients, notwithstanding new clients coming into the economy is very significant. We will be working very hard on that. As Minister for enterprise, I will ensure that high-quality jobs are coming right across our region. Specifically, the new strategy calls for 55% of all new jobs to go to regional Ireland.
I remind the Minister that south Tipperary is not in the mid-west region. The IDA must ramp up its marketing of the Ballingarrane site. I am not satisfied that it has done enough. It must do more. I ask the Minister to intervene with the IDA to ramp up that marketing. There are some very successful industries in the area, including flagship industries, such as Abbott Vascular and Boston Scientific in Clonmel town and MSD in nearby Ballydine. The success of these industries should assist the IDA in securing an industry for the Ballingarrane site. As I said, this site is vitally important for the future industrial and social development of Clonmel and all the surrounding areas, including west Waterford, east Limerick and east Kilkenny. The sooner an anchor tenant is got for that site, the better.
To be absolutely clear, the figures I gave for the IDA's marketing in the mid-west region are for Limerick, Clare and Tipperary, which are categorised together. The Deputy will see the results I pointed out. There are 27,000 jobs in that sector. There is also a very significant investment in the capital fund, where we have our advanced factory units, and where the IDA part the Deputy referenced is seeing the opportunity of that investment as it goes through the planning process.
We have to appreciate that bringing multinational investment into our country is very competitive. Those who so often criticise the IDA for not doing enough also go against the key policies that bring that foreign direct investment into our country and allow it to sustain and grow. In one respect, it is fine to say the IDA is not doing enough to market the site, but it is also important to acknowledge that the consistent policies of the current and previous Governments have made us a very agile country, where we have 300,000 jobs in our economy in the FDI sector. Critically, that eco-cycle is joined with our SMEs and family businesses, where we have seen exceptional growth over the past number of years, in a context where Enterprise Ireland has targeted €50 billion of exports to 2029.
Work Permits
5. Deputy Richard O'Donoghue asked the Minister for Enterprise, Trade and Employment the cause of the high volume of refunds of employment permit applications and the resultant processing delays; and if he will make a statement on the matter. [21410/25]
I am submitting this question on behalf of Independent Ireland. What is the cause of the high volume of refunds in employment permit applications, which are resulting in processing delays?
I thank the Deputy for his question. My Department has made significant progress in recent years in improving the employment permits processing system to ensure the service is responsive to business needs and prevailing economic conditions. Following a significant increase in demand in 2021 and 2022, the Department implemented an action plan, which increased resources to introduce effective methods of processing permit applications. The number of applications awaiting processing has been reduced from approximately 11,000 in January 2022, with processing timelines of up to 22 weeks, to just over 4,000 at the start of this year. As of 18 April, I am pleased to report that this number is under 2,000 and processing times for all permits have been reduced to within one to two weeks.
Improvements have also been made in respect of the refund process. Fees are refunded for a variety of reasons, for example, where an application has been submitted for a role that is ineligible for a permit, where the quota for the role has been reached, or where an applicant is refused.
Due to the overall backlog and high volume of demand in recent years, users were also experiencing delays in the refund process. However, following process improvements, the majority of refunds are now issued directly to the credit or debit card used to pay for the application within five working days.
My Department remains committed to offering an efficient employment permit service. This week, the employment permits unit launched a new permit processing system, employment permits online. This new cloud-based system replaces older technologies and will transform the way employment permits are applied for, processed and issued. By introducing a portal space with individual online accounts for both employers and employees, it will be easier for users to get up-to-date information on their applications. It will also provide users with more ownership of their accounts. The new employment permit system will make the application process easier, more secure, more intuitive and in so doing will reduce inaccuracies in the submission of applications, resulting in a more streamlined processing experience.
I thank the Minister of State for his reply. I am delighted that the new portal is finally up and running. We have a bigger problem with this. The processing of permits is starting to work but there is not much point having a permit if people cannot get the visa with it and the Department is not speaking. Many people who are getting permits are not getting the visas. It is as if one Department is not talking to the other. While the Minister has excelled on the permit side the Department on the other side is not getting the visas through. We have had a lot of cases this week alone, the same as the cases that have been going on over the last three or four months, waiting for the visas. I compliment the Minister on the permit side, but we need to make sure the permits are followed with visas. They need to be in tandem to make sure that the people who want to come into this country legitimately can get here with their permits to get into employment and they also have the visas at the same time.
I thank the Deputy for raising this important matter. Back in December 2022 the Government made a decision to implement a single application process for employment permits while also ensuring that the immigration permissions are developed in tandem with that. The new system that has been introduced and is currently live provides technology similar to that currently in place within the Department of Justice which will assist and provide the required infrastructure for a single processing between the respective Departments. There is a committee and sub-group, comprising a project management team that is co-ordinated by my Department and the Department of Justice, working on a single application process. We know we cannot have one without the other in order to have processing on time. We look forward to making significant progress in that regard.
I look forward to that. This week I have seen permits that came through and the visas came to us within two days of those. However, others go back two and three months. I am looking forward to this new system to see if it will work in tandem. Many companies are waiting for permits at the moment. Many people who have been working in companies here for a couple of years and want their families to come here are having problems getting visas for their families. I know of one person who has been working here for four years. His wife is a chemist and she cannot get in here for some unknown reason. Many chefs and other people with skills are working in the hospitality sector. They want their families to come here. They have the accommodation, but they cannot bring them here. We should do whatever we can to fast-track it. I acknowledge the new portal the Minister of State mentioned. Let us hope that it can speed things up even more.
I look forward to the Deputy's support in the implementation of this new system. It is reflective of the success of the Irish economy with over 2.8 million people currently employed. We have skills deficits in certain areas of expertise. Not just the general work permits but also the critical skills employment permits are essential to meet our future needs. The system has now been enhanced. Last year a record number of employment permits, over 38,000, were issued with the implementation of the online system and we want to enhance that further. I thank my predecessors, the Ministers of State, Deputies Higgins and Richmond, for their efforts in this regard. With trusted partners and employers we can certainly go further in order to implement an effective system.
National Minimum Wage
2. Deputy George Lawlor asked the Minister for Enterprise, Trade and Employment if he will reverse his decision to delay the implementation of the living wage until 2029; if he will commit to ensuring that low-paid workers are recognised for the invaluable role they play in the economy; and if he will make a statement on the matter. [21411/25]
I hope the House will join me in wishing all working people across the country a happy May Day. However, delaying the living wage is no way to mark International Workers' Day. It has been 25 years since the minimum wage was introduced and ten years since the Low Pay Commission, which I established, made its first annual recommendation on an appropriate rate for the national minimum wage. This is a really important legacy to protect the interests of low-paid people. The Minister is now publicly instructing the Low Pay Commission, a statutory independent expert body which supposed to be independent of Government, to dump living wage pledge on the pretence of protecting competitiveness. Will the Minister allow the Low Pay Commission to do its job?
I thank the Deputy for his very important question. I acknowledge and thank the 2.8 million workers going to work today on what is International Workers' Day. I look forward to addressing the House in that respect later.
I am committed to improving the pay of low-paid workers and the Government’s track record on this is beyond question. Since 2020, the national minimum wage has increased by 33.7%, from €10.10 to today’s rate of €13.50 an hour. The Deputy will agree that this is a substantial increase, and I fully expect the national minimum wage to increase further over the coming years.
Our current rate of €13.50 an hour means that Ireland now has the second highest minimum wage in the EU, second only to Luxembourg. When adjusted for purchasing power standards, we have the fifth highest minimum wage in the EU.
In 2024, there was a significant uplift of 12%, or €1.40, in the minimum wage, and this year the minimum wage increased by 80 cent, an increase of over 6%. Both of these increases were well ahead of inflation and projected wage growth, and have brought about substantial and real wage growth for the lowest paid workers in our economy.
The Low Pay Commission has estimated that the “bite” of the minimum wage, that is, the national minimum wage as a percentage of the median wage, has increased from 50% in 2022 to 55% in 2024, calculated using the CSO’s labour force survey data, or from 54% in 2022 to 59% in 2024, using the CSO’s structure of earnings statistics data.
The Government wants to ensure that any further increases in the national minimum wage are managed in a sustainable way, and in a way that does not threaten employment or competitiveness. That is why Government has agreed to adjust the implementation timeline for the living wage to 2029. This was done as part of a suite of measures to bolster business resilience and support competitiveness during these uncertain times. This decision should be considered in the context of the recent significant increases in the minimum wage which show Government’s continuing commitment to fair wages across the economy.
Speaking earlier on the radio, the Minister said he makes decisions based on evidence. There is no evidence anywhere in the world to suggest that modest incremental increases to rates of national minimum wages impact employment rates or competitiveness. The Minister talks a lot about competitiveness but by delaying the introduction of the living wage, he is owning up to the problems the Government has created. If it wanted to deal with competitiveness, it would deal with the cost of energy, deal with renewables and deal with the genuine cost of doing business in Ireland which has nothing to do with the rate of the national minimum wage.
Deputy Conway-Walsh was absolutely right. These jobs are not to be found in the globally traded international sector; they are in the locally traded sectors - those areas that are not in the front line of Trump's potential tariffs. If the Government wants to address competitiveness, it should look at energy, housing and infrastructure, and not the national minimum wage. As the Minister will know, and I am sure this was the case, section 6 of the 2015 minimum wage Act, which allowed for the Low Pay Commission to be formed, makes it very clear that no decision should be taken that would impact employment rates and competitiveness.
The Government has committed to achieving the living wage in the current Administration. The increases of 12% and 10% we have had in recent number years are significantly above wage growth in economy which is 3.5%.
They are also above the inflation rate relating to our economy, which has now tapered down to about 1.75%. My key issue is to make and ensure that any increases are sustainable. We are doing that, and we have the evidence. The first piece of evidence is the joint report from the Departments of Enterprise, Trade and Employment and Social Protection which stated that there would be a 36% increase by 2026 on 2023 levels between the living wage, auto enrolment and sick pay for our smallest family businesses.
Some 75% of minimum wage workers are in retail and hospitality, and evidence from the PwC barometer indicates a 50% increase in insolvencies in those sectors. This means that jobs are being lost in those sectors. I want to ensure that workers have real wage growth, which they will because the increases in the minimum wage will continue and are at levels significantly above the rate of inflation. I will take on board the recommendations of the Low Pay Commission when I receive its report in the third week in July.
The Minister also failed to understand and accept that there has always been churn in the retail and hospitality sectors. There were enormous net job gains in the retail and hospitality sectors in recent years, sectors which, quite rightly, were protected during the pandemic but which have continued to be protected with significant subsidies that have no conditions whatsoever attached to them in terms of job quality, retention or pay.
What the Minister is doing in respect of the living wage is virtue signalling. That is it. It has no basis whatsoever in evidence. This will affect the lowest paid people in our society. The reality is that decent pay boosts productivity and increases retention for SMEs. We know the lower paid have a propensity to spend more of their income in the local community, ensuring that demand continues even if the local economy is in some difficulty. The Minister needs to review his position on the living wage and other employment rights he is attempting to decimate on the sham altar of competitiveness. The essence of social democracy is having decent jobs, a decent economy and good, functioning businesses that offer decent working conditions to people. Unfortunately, the Minister is showing that he is picking sides, and this is unnecessary.
I am not picking sides. I am ensuring that we have valuable employment and strong businesses. Anyone who says we have not improved workers' conditions is not backing that statement up with evidence. Auto-enrolment will be introduced on 1 January. There is a right to request remote working. Tips legislation to protect vulnerable workers has been introduced. Zero-hour contracts were banned. Parental leave has been introduced. A Fine Gael Government, with the Taoiseach at the time, took the lead on improving employment rights. We all know the work our former Taoiseach, Leo Varadkar, did in this area.
We know the costs that businesses they face, and that is the evidence I am giving the Deputy. I am pointing him to the reports on the basis of which I am acting. I am also pointing him towards how we are improving workers' conditions consistently, right across the economy. I have commissioned a review of employment law by the employment law review group, which is needed for our economy because employment legislation affects so many areas.
I want good, well-paid jobs in our economy. I also want businesses to be viable and to do well. My job is to balance those interests and ensure we protect employees on what is a significant day, namely International Workers' Day.
School Meals Programme
81. Deputy Louise O'Reilly asked the Minister for Social Protection if he is aware of concerns raised about the nutritional value of school meals; if he has considered utilising non-profit groups like an organisation (details supplied) for this service; and if he will make a statement on the matter. [21757/25]
My question is fairly straightforward. I am aware the Minister is doing a review. I have corresponded with him with regard to taking the profit motive out of school meal provision to the greatest extent possible. Has the Minister examined that or is he open to further discussion or consideration of it? My question cites the meals on wheels service but there are obviously others that would fulfil similar criteria.
I thank the Deputy for her question and correspondence on this issue. On the nutritional value of school meals, I am very aware of the concerns that have been expressed. It is important to note that each week, parents are provided with a menu of food options and it is the parents who select the food to be served to their children in that week. It is important, in my view, that parents continue to have this role. Second, the menu of food options presented to the parents is required to comply with standards set by the Department. These standards, the nutritional standards for school meals, were developed by a technical nutrition subgroup comprised of dieticians from the Irish Nutrition and Dietetic Institute, the HSE, Safefood, and the Food Safety Authority of Ireland. These standards are available to all schools and suppliers and are publicly available on gov.ie.
My Department provides the funding for the meals directly to the school. All schools are responsible for choosing their school meals supplier in a fair and transparent manner in accordance with public procurement rules. These rules clearly define the successful tenderer's responsibilities and obligations, including in particular adherence to the nutritional standards. My Department does not select the suppliers. In that context, if a school were to contract meals on wheels as its supplier, then that would be permitted, subject to procurement, nutrition and the other applicable requirements being met.
The Department conducts site visits and inspections in schools to identify if, among other things, the menu options are compliant with the specified standards. I have directed that a review of the scheme’s nutritional standards be undertaken. This will be conducted by a dietician who will be supervised by the Department of Health in co-ordination with the interdepartmental group on school meals. I have asked for a report on those standards be submitted by the end of the year. In the meantime, food that is high in saturated fat, sugar and salt will be removed from school menus by September 2025.
I thank the Minister for his response. The reason I raised this issue is that I have a concern about the nutritional quality. Parents cannot control the quality of the food, although they can select from the menu of options. Concerns have been raised about the traceability of food and labelling such as "pasta sauce". At the end of the day, the companies that are involved in this have a loyalty to their profits and business. I am talking to the Minister as he is wearing both of his hats. He looks after part of the school meals programme but also has responsibility for community employment, Tús, the rural social scheme and other schemes. That would be very beneficial. Will he consider not-for-profit provision? We saw what happened in England with turkey twizzlers and all that kind of stuff. We do not want to go down that road. My fear is we are part way down it already and we need to pull it back. The best way to do that is to remove the profit motive from that programme.
I would certainly be happy to consider that. There would be logistics issues. Some schools feed hundreds of students every day with a range of meal options. It could work, from a nutritional point of view as well, in that locally supplied food is generally healthier in this context. It is something we might even ask the nutrition review to consider as well. Anything we can do to help in the not-for-profit sector in this space, which is doing really amazing work as it is, I would be happy to do.
On Tuesday this week, I attended a presentation on the meals on wheels network. There was a representative from the Minister's office there as well. The network is absolutely fantastic. Day in and day out, the volunteers do a really good job. It is not just a food delivery service but they are really conscious about the quality of the food. They have a more hands-on approach. They are local. They do not have a corporate office so they might struggle to put in a very swanky and slick tender into a tender process. They do not have that kind of backup or administrative support. I welcome the fact that the Minister will consider getting the nutritional review to have a look at that. To the greatest extent possible, if we can remove the profit motive from the school meals programme, there will be benefits for the children, social benefits that come out of that, but also local benefits. Taxpayers' money could not be spent more wisely than putting it into the meals on wheels network.
Next week I will attend the celebration of 50 years of Balbriggan meals on wheels. It provides an absolutely exemplary service. I am really looking forward to it. The recipients of the service have good words to say about it when I talk to them. It is about the nutritional value as well as the service of calling to people's doors.
I join the Deputy in wishing a happy 50th to Balbriggan meals on wheels; it is welcome to the club. I agree with the Deputy. We will certainly have a look at it. The first thing to do is review the nutritional standards. We will complete the roll-out of the school meals programme into every remaining primary school in September. That is a good time to stand back, take stock and see how we can improve it. This is a very substantial investment on the part of the Department.
Many of the suppliers are not complete corporate monoliths; they are small local companies as well doing local things. I want to give credit to the local companies in this. We will have a chance to take stock and the issues the Deputy raised are definitely worth reflecting on.
Children in Care
82. Deputy Liam Quaide asked the Minister for Social Protection if he will report on the social welfare supports available to young people leaving State care, who may be at risk of experiencing homelessness; and if he will make a statement on the matter. [21565/25]
According to the Simon Community, the number of people aged 18 to 24 experiencing homelessness is approaching 1,800. This represents an 8% increase over the past year. Some of the most vulnerable and those most at risk of experiencing homelessness are young people leaving State care. This cohort of young people often leave care without a support network. They have also experienced trauma in their lives and we know homelessness is a very traumatic experience. Ensuring that the State is there to support them is vital. Will the Minister outline the financial supports available to these young people, in particular to prevent them from becoming homeless in the first instance?
The staff in my Department are acutely aware of the challenges faced by young people who leave care and are available to them to assist with the provision of social protection income and employment supports. The Department's staff engage with a range of stakeholders and advocacy groups working with vulnerable people. For instance in Dublin, staff engage with the Dublin Regional Homeless Executive and in the local network of children and young people's services committees as part of the process of co-ordinating the delivery of supports to vulnerable people, including the group the Deputy has referred to, those leaving care. There is legislative provision that age-related reduced jobseeker’s allowance rates do not apply to young jobseekers who were in the care of Tusla for any period during the 12 months immediately before their 18th birthday. The full standard rate of personal jobseeker’s allowance of €244 per week is payable in these circumstances.
With regard to the specific issue mentioned by the Deputy, we operate a person-focused national protocol in conjunction with other agencies to help those who are homeless. Importantly, a person does not need a permanent address to apply for a social protection payment or service or to receive a social welfare payment. Where necessary, short-term rent supplement can be paid by my Department. This scheme provides financial support to people living in private rented accommodation whose means cannot meet their accommodation costs and where accommodation is not available to them from any other source. That could include somebody leaving care on their 18th birthday. Also, additional needs payments are available to assist those who have essential expenses such as rent deposits, rent in advance and household bills that they cannot pay from their weekly income. This full range of supports is available to young people leaving care. We work in conjunction not just with the statutory authorities but with advocacy groups as well to address this. I am more than open to suggestions as to how we tighten this up.
I am aware from consultation with the Simon Community that young people leaving the care system are often not aware of the supports the Minister has outlined which are available to them. I ask the Minister to ensure information about housing and homelessness services, and social protection supports are made available in schools, local communities and youth services.
Another issue I would like to raise is the collection of data. Currently, Tusla does not provide any distinction in its data about where young people find themselves after leaving State care following their 18th birthday. We just have one crude figure to cover young people who end up in a variety of settings such as in hospital, prison, homeless services and mental health or disability services. If we are to establish how best to help young people when they leave care, it is essential that we know precisely where they end up. I would be grateful if the Minister could respond on this, in particular the gathering of information and bringing it together to ensure that these young people who are so vulnerable are not falling through the cracks.
Tusla has a duty under section 45 of the Child Care Act 1991 to make a decision whether each person leaving care has a need for assistance and then to provide services in accordance with the legislation, subject to the resources. On reaching the age of 18, a young person is deemed to have left State care. Young people who have a care history with Tusla are entitled to an aftercare service based on their eligibility and assessed needs. The assessment considers a number of factors, including the young person's educational and accommodation needs. If deemed necessary, Tusla will provide financial support to eligible care leavers who are engaged in a qualifying educational course or training programme. That aftercare allowance amounts to €300 per week. It is dependent on the eligible young adult attending an accredited education course, a third level course or a training programme as outlined in their own aftercare plan. The allowance is provided to cover a young adult's day-to-day costs, including accommodation, as they progress in their chosen course or training programme. I will come back in the next round on the question relating to information.
Those are the main issues we wanted to raise today. I thank the Minister.
Social Welfare Payments
83. Deputy Louise O'Reilly asked the Minister for Social Protection if he is aware that there is a disparity in the assessment of child maintenance across different forms of supports; if he will give consideration to standardising this; and if he will make a statement on the matter. [21758/25]
While I am aware the Department does not use child maintenance as a criterion by which to assess, it is alone in that regard. It is incredibly hit and miss across local authorities. Some count it whereas others do not. Does the Minister agree that child maintenance is for children and should not be considered as part of means tests for essential supports for adults and families? I hope the Department takes the lead on this because there is no standardisation, not even across local authorities. Part of the reason for that is each Department is making up its own rules, as are the local authorities. Standardisation is needed. I am hoping the Minister will work with me to develop and ensure that is achieved.
I thank the Deputy for her question and for raising this issue. As she will be aware, the Social Welfare and Civil Law (Miscellaneous Provisions) Act 2024 provided for changes to the social welfare means test to exclude child maintenance payments from assessment in all means-tested payments that my Department provides. This was one of the recommendations of the report of the child maintenance review group into the social welfare system. This change to the social welfare means test came into legal effect from June 2024. As a result of this change, the full amount of child maintenance a person receives is no longer being assessed in the means test for any social welfare payment. This change means that people on reduced rates of payment may have seen their payment increase and those who may not have qualified at all up to then may now be able to access a payment.
Following the introduction of this change, my Department reviewed approximately 65,000 claims for one-parent family payment and jobseeker's transitional payment in payment. As a result, child maintenance payments were removed from the means assessments of approximately 15,800 people, something we can all agree is a positive measure.
The means test or income assessments for other State services, such as the medical card, are a matter for the relevant Minister with responsibility for those payments or services. On foot of our discussions arising from the Deputy’s question, I will highlight what has been achieved in my Department with colleagues in relevant Ministries.
There are 190,000 children in Ireland today classified as at risk of poverty. Child maintenance is essential. I find it incongruous that although child maintenance is absolutely essential, it is included in assessments for some necessary supports.
I welcome the Minister’s words. I hope he will work with me across party lines on this matter. No one will disagree with the idea that child maintenance should not be included when calculating assessments for supports because those supports are often for families, whereas child maintenance is for the child. Given those stark statistics and the fact that organisations such as Social Justice Ireland tell us that all once-off payments, which the Minister said will be discontinued, do is mask an increasing trend of child poverty, that needs to be tackled. The Minister can send a message to families on low incomes and people dependent on supports and payments by saying what is recognised by the Department of Social Protection must be recognised by all other Departments.
It is incredibly confusing for people when means tests are assessed in different ways for different schemes and services. This is the case even within my Department. There are often valid reasons for this, however. Schemes are being developed to cater for people in different circumstances and who are experiencing different and difficult contingencies. That said, the social protection system does not operate in a vacuum. The means-testing aspects of our social welfare system coexist with means tests in operation across other domains such as health services, education, housing and preschool childcare. It is a matter for each Minister. Based on our experience since last year, however, I intend to highlight and bring to their attention that experience. The report to which I referred did not examine areas outside the Department of Social Protection. That may be something for the incoming social protection committee to reflect on as it begins its work programme.
We will consider this as part of the work programme if I have anything to do with it. The Minister rightly highlighted that it is confusing when different methods of assessment are used. While he said there are sometimes valid reasons for this, there are actually no valid reasons for including child maintenance in assessments. The louder we say that and the more people we say that to, the more likely it is that this will be standardised across the board. The aspect that is confusing for people is they cannot understand why child maintenance is included for one payment but disregarded for another. It should be disregarded for all of them. It is not a payment to the family; it is a payment to the child. We need to be clear in that regard. I welcome the Minister’s words and I hope this is something on which we can work together. I will most definitely have it on the agenda for the work programme for the incoming social protection committee.
Disabilities Assessments
84. Deputy Mark Wall asked the Minister for Social Protection if he will update the Dáil on the work his Department has carried out in designing a cost of disability payment, as outlined in the programme for Government; the expected date of introduction of such a payment; and if he will make a statement on the matter. [21989/25]
Will the Minister update the House on the work his Department has carried out to date on designing a cost of disability payment, as outlined in the programme for Government, the expected date of such a payment and the amount involved?
The Government recognises the additional costs associated with having a disability and is committed to improving outcomes for disabled people. In the programme for Government, we are committed to introducing a permanent annual cost of disability support payment. These commitments will build on progress made in recent years where we have taken steps to recognise the additional costs associated with having a disability. As part of last year's budget, significant supports for people with disabilities were introduced, including: an October 2024 cost-of-living bonus for people in receipt of a long-term weekly social welfare payment; a €400 cost-of-living lump sum payment for people in receipt of disability allowance, invalidity pension or blind pension in November 2024; a €200 cost-of-living lump sum payment to people who are getting a living alone allowance in November 2024; and a €12 increase in the maximum personal rate of weekly disability payments from January 2025.
The Indecon report on the cost of disability, commissioned and funded by my Department, found that the extra costs of disability are due to factors including higher costs of healthcare, transport, education and other services that arise because of a higher level of dependence on these services by people with disabilities. The report noted that addressing these costs was not simply a matter of a higher welfare payment but would need to incorporate improvements in services. This report recommended that any additional public expenditure should be targeted on areas where high potential costs are creating hardship, rather than spreading resources thinly.
An Taoiseach is chairing a Cabinet committee on disability with a view to driving and monitoring progress on implementing all programme for Government commitments in this area. As part of this work, my Department is examining the best way of delivering an annual cost-of-disability payment within the overall budgetary context. The Deputy can be assured this is a matter I intend to progress during my term in the Department.
As part of the work of the Oireachtas Joint Committee on Autism, we had a number of presentations on the cost of disability to families. One of the most recent reports I have seen shows there is an additional €30,000 per annum cost for a family with a disability or a loved one with a disability. That is obviously substantial and causes hardship. A lot of that hardship is ongoing. The Minister mentioned temporary payments in the context of how they mask what is really going on behind the doors of those families who are scraping to get by to pay for their loved ones, heating and everything else they must pay. Can the Minister provide a timeframe? While he said he would commit to this throughout the lifetime of this Government, can we get some more dates as to when we can actually see a cost of that?
The services he mentioned are very important for families. If they do not get the additional payments, which we are being told will not come in the next budget, we are going to see a lot of families scraping by. They will be in a lot of trouble come the winter months in particular with the cost of disability as it stands at the moment.
I do not have a specific timeline yet but we are working on it. There are a number of different reports on the cost of disability, which have widely varying figures. One of the first things I am trying to do is address and come up with a figure that actually reflects the reality of it. When we have a figure we can work on, we will look at a timeline.
From next week, applications for domiciliary care allowance can be made online, which is a small but important change that gives people the chance to avail of that option. I am absolutely focused on this space in order that we can do it in a way that reflects not just the cost but also the pressures that people with a disability and their families are under at this time and in a way that treats them with respect and dignity. It is something we will examine, working through the Cabinet committee on disability, which meets monthly, to come up with a timeline on it.
I thank the Minister. Reference has been made to the work programme for the social protection committee. I am sure, along with others in the House, that this is something that we would love to have included in the work programme. It is very important for many people when they are looking at an additional €30,000 that they have to scrape for to find. This is a substantial amount. This is an average that has been outlined in one of the most recent reports that I have seen. I look forward to engaging with the Minister at the social protection committee on this topic. It is important that it forms an early part of our discussions on the work programme. Too many people are suffering from a lack of supports, particularly now, when we have heard the kite flying from Ministers that there will be no more temporary payments come the budget next year. There are a lot of worried families. We can do some good work on the social protection committee by trying to come up with some solutions for those families.
I will work closely with the committee. It has always been a very collegial committee and has the interests of those with disabilities at heart. I am determined to work with the committee to come up with solutions and reforms. This applies not just to social protection but across services as well. We have a lot of work under way in this space and I hope that by the time we come to the end of our term in government that there will be a lot of positive change in this space.
Care Services
85. Deputy Roderic O'Gorman asked the Minister for Social Protection for an update on the commitment in the programme for Government to increase the income disregards for carer’s allowance in each budget, with a view to phasing out the means test during the lifetime of the Government; and if he will make a statement on the matter. [22000/25]
During the general election campaign, Fianna Fáil and Fine Gael promised to abolish the means test for the carer's allowance. The programme for Government contains a commitment to phasing out the means test during the lifetime of the Government. Will the Minister tell us in which budget the means test will be abolished?
I had this question down on behalf of Deputy O'Gorman but I thank Deputy Murphy for the question. The carer's allowance is the main scheme by which my Department provides income support to carers. There are currently 99,256 people in receipt of carer's allowance. Expenditure in 2025 is estimated at more than €1.24 billion. In common with other social welfare payments, the primary objective of the carer's allowance payment is to provide an income support to people experiencing a contingency that significantly limits their ability to earn an income through employment.
Carer's allowance is means tested under current social welfare legislation. Within the social welfare system, means tests are used as a means of targeting income transfers to those most in need, in a progressive and equitable manner. However, it is also important that income limits used in means tests are calibrated to reflect the ability of recipients to earn income from other sources and, in so doing, reduce their dependence on a welfare payment. In this respect, the income disregards for carers are already the most generous in the social welfare system and are being further improved. This July, the weekly income disregard will increase from €450 to €625 for a single person, and from €900 to €1,250 for carers with a spouse or partner. This means that a carer in a two-adult household with an income of approximately €69,000 will still retain their full carer's payment and even with an income of €97,000 will retain a partial payment. As the Deputy said, the programme for Government commits to continue this process and to significantly increase the income disregards for carer's allowance in each budget, during the lifetime of the Government, with an aim to ultimately phase out the means test during the lifetime of the Government.
I will work with my colleague the Minister for Public Expenditure, National Development Plan Delivery and Reform to give effect to this commitment over a number of budgets. Other supports for carers are also provided by the Department that are not based on a means assessment. These include the carer’s support grant, carer’s benefit and the domiciliary care allowance.
It was interesting that the Minister used slightly different language in his answer from what is contained in the written replies to parliamentary questions. In written replies the Minister states that the programme for Government has set out a timeline that commits to significantly further increasing the income disregards. He left out, quite understandably, the point about having a timeline because, presumably, he knows that the programme for Government does not contain such a timeline. All it sets out is a general commitment to a view to phasing out the means test. I presume the Minister is not in a position to give me a timeline. While the increase in the income disregard is welcome, it is not sufficient. A means test is not something that can be gradually abolished. Either we have a means test and all of the pressure that puts on people or we do not. It is not only about the income; it is also about the fact of the means test being a demeaning process that people go through. They have to fill out a large form, along with a medical report to justify the work they are doing, which is saving the State approximately €20 billion a year.
I thank the Deputy. I meant to clarify in reply to Deputy O'Reilly earlier that we are conducting a review of the means test process across all schemes in the Department. Means tests are important but they are how the process is implemented. I look forward to hearing people's views on that. We will engage with the Minister for public expenditure on this issue. He is aware of the commitment in the programme for Government. If we look at the changes that have been made in recent years to the income disregard, they show a direction of travel that we intend to continue. The commitment is there in the programme for Government. It is based on me having the resources to do that and I am determined to fight for those resources on an annual basis during the term of this Government.
I worry that this is one of those promises made during the general election campaign that is then watered down in the programme for Government and that will end up falling by the wayside. In the past few weeks, a number of commitments made by the Government have been abandoned under the guise of the Trump tariffs, by saying that now is not the time for extending. I worry that that is where we are going to end up. The Minister may not have the figures in front of him, but of the almost 100,000 carers, I wager that a significant majority of those are women. There is no getting away from the fundamentally gendered nature in our current society of this work and that is linked to the undervaluing of this work by the State. The refusal to provide a clear timeline with dates to abolish the means test is fundamentally a sexist policy of the Government that places women in a position of continued dependency on their male partners. Economic independence is vital for gender equality, especially at a time when finding affordable housing is the main impediment to women leaving abusive relationships. That is another reason we should abolish the means test.
The commitment has to be looked at in light of the improvements that have been made in recent years, which I am determined to continue. In the context of the Deputy's final remarks, the long-term carer's contribution scheme was introduced in January 2024. Under this scheme, a person who has been a full-time carer - and yes, the Deputy is right that they are predominantly women - for an incapacitated dependant for at least 20 years, now get long-term carer's contributions that will cover gaps in their contribution record and help them to qualify for a contributory State pension. As part of budget 2025, the carer's support grant was increased by €150 to €2,000. That is the highest rate ever for this grant. As we have also reflected, the carer's allowance weekly income disregard will increase in July from €450 to €625 for a single person and from €900 to €1,250 for a couple. Since June 2022, there has been a cumulative increase of €292.50 for a single carer and €585 for a carer who is part of a couple. We increased the capital disregard in June 2022 so a carer with a spouse or partner can now have capital of up to €100,000. The trajectory of the commitment in the programme for Government is backed up by the changes that have been made over the past number of years. Those kinds of changes and level of commitment to carers will continue.
Question No. 86 taken with Written Answers.