Varadkar to seek approval for Christmas social welfare bonus

Minister for Social Protection Leo Varadkar has said he will seek approval from Cabinet in the coming months to pay this year's social welfare Christmas bonus.

No money has been set aside in the Government’s revised social protection costings for 2016 to pay the bonus.

Mr Varadkar has said he will seek approval for the bonus, but has not indicated whether he will seek a full or partial reinstatement.

The bonus, an extra month’s social welfare allowance paid on the run up to the festive season, was abolished in 2009.

It was partially reintroduced in 2014, at 25 per cent of a month’s payment. Last December, a 75 per cent bonus was received by 1.2 million people, including long-term unemployed, pensioners, people with disabilities and carers.

In revised estimates published earlier this month, the Government earmarked €10.9 billion for social protection to the end of December 2016, excluding the Christmas bonus.

It is estimated a 75 per cent bonus payment would cost €200 million, and the full reinstatement of the bonus would cost €267 million, giving an additional €234 to a single pensioner and €188 to someone on jobseeker allowance.

A 50 per cent would cost €133 million and be worth €117 to a pensioner and €94 to a jobseeker.

Responding to a parliamentary question put down by Fianna Fáil spokesman on social protection Willie O'Dea, Mr Varadkar said any decision about paying the bonus would have to be consistent with legal requirements of the Fiscal Responsibility Acts 2012 and 2013. It would also have to be "within the context of achieving the targets set for Ireland by the EU rules".

Mr O’Dea it was disappointing the estimates did not include the bonus, “given the Government took the opportunity in the revised estimates to deal with the under-funding issue they created in the health service”.

He said Minister for Public Expenditure and Reform Paschal Donohoe had indicated, under new fiscal rules, any supplementary estimates needed to meet additional spending must be funded through expenditure savings and efficiencies elsewhere, or via discretionary revenue measures.

“This puts considerable limits on the ability to facilitate the payment of the Christmas bonus later in the year,” he said.

“Families and individuals in receipt of long term social welfare supports need this payment to meet the additional costs of Christmas expenditure. It’s vital that they feel the benefit of a growing economy and improving public finances.”

Mr O’Dea said Mr Varadkar will need to put a strong case to his colleagues to ensure the payment is made.