2026-02-26

9. Deputy Séamus McGrath asked the Minister for Social Protection to increase the living alone allowance in recognition of the significantly lower income available to qualifying single householders relative to couples. [15159/26]

I ask the Minister to increase the living alone allowance in recognition of the significantly lower income available to qualifying single income householders relative to couples. It is widely acknowledged that the household costs and cost-of-living challenges for people living alone are quite significant. When we compare a couple, for example, versus a single income household, there is quite a significant difference. The living alone allowance is designed to bridge that gap but, unfortunately, it does not go anywhere near enough. I ask the Minister to please consider this increase in the upcoming budget.

I thank Deputy McGrath for raising this issue. As he knows, the primary weekly social welfare payments are intended to enable recipients to meet basic day-to-day income needs. In addition to those primary payments, we also provide a range of other payments that are considered secondary in nature. The living alone allowance is one of those secondary payments. It is not a scheme or stand-alone payment but rather a supplement to certain primary social protection payments for those who are in receipt of those payments and who are living alone. The current rate of living alone allowance is €22 per week. It has increased by over 144% since 2019, when it was just €9 per week. The majority of the recipients of the living alone allowance are those who are over 66 and who are getting a pension from our Department. The living alone allowance is also available to those who are under 66 who live alone and who are getting disability allowance, the invalidity pension, the incapacity supplement or the blind pension. The rate of primary and secondary payments to pensioners, and their adequacy, are considered in the context of the annual budgetary process. In doing so, the Government considers evidence from a wide range of sources, including agencies such as the Central Statistics Office, CSO, and also research submitted by advocacy groups around this. The data shows the cost of living for a single person is more than the individualised cost of two people living together, as the Deputy said. For this reason, the living alone allowance is available to those in receipt of qualifying payments. Any future changes to the rate of payment for the living alone allowance would have to be considered in the overall budgetary context. We are not yet in budgetary season but, certainly, it is an area that many Deputies, including Deputy McGrath, have raised with me. However, it will have to be looked at in the context of the overall budgetary envelope that is available to us in 2027.

I accept we are very early in terms of the budgetary cycle. I did raise this issue with the Minister last year. I appreciate he is under significant pressure in terms of what he can prioritise with the resources available to him. Again, however, I would strongly argue that this receives strong consideration and that is why I am flagging it at this early stage. A couple who are both on the contributory pension have approximately €600 per week in basic payments or, indeed, a contributory pension plus qualified adult is up to €500. However, for someone on disability allowance living alone, his or her basic payment is €254. The household costs for that individual are very similar. Many household costs are unrelated to the number of people living there, for example, local property tax, house insurance and rent or mortgage payments. Indeed, many utility bills have flat rates, so they are not really dependent on usage to a great extent. The living alone allowance is designed to bridge that gap but I would strongly argue that it needs to increase. I welcome the increases over recent years to €22 but the gulf is far greater, and it really does need to be increased in the upcoming budget.

We are certainly conscious from our day-to-day experience with our own families, but also from our constituencies, that the cost and the cliff for those living alone, particularly those who have suffered bereavement or separation, is particularly tight. We are very conscious of that. That is why there has been such a big increase in it since 2019. I also want to ensure that people are aware there are other supports available that they may not be aware of in terms of the household benefits package and the fuel allowance, which we increased in budget 2026. A person who is in receipt of a pension and who qualifies for the living alone and fuel allowances also receives the telephone support, which is an extra €2.50 per week. We look again at the costs on a 2026 basis ahead of budget 2027. We have shown cause over the past number of years, and it will be looked at in the context of the budgetary allocation for 2027.

As I outlined earlier, the difference between a couple, for example, on social welfare and an individual can be over €300 of a difference per week. That is very significant. When we look at the advocacy groups, such as Alone, which is advocating on behalf of older people, they indicate that over 100,000 people are potentially in poverty. The vast majority of those would be individuals living alone. Again, the living alone allowance is designed to help support those. I welcome it but, again, I am reiterating the point that it does need to be increased. On any objective analysis, €22 is not sufficient to make up that difference. As I said, many of the household costs are not related to the number of people in the property. As a constituency TD, similar to the Minister, many of the requests we get are from people living alone in terms of the difficulties they face in meeting daily costs and running a household. I appreciate the Minister's response. Again, I would urge him to strongly consider this at an early stage.

I will certainly take on board the Deputy's request. He is definitely in early but there were other Deputies even in ahead of him this morning for budget 2027 priorities. I will point out in the context of budget 2026, however, that €12 billion has been allocated for pension payments. Many people who are living alone are predominantly pensioners. That €12 billion is an increase of just over €700 million from the 2025 Revised Estimates. The investment in pensions, as we discussed at committee yesterday, is nearly 42% of the Department’s overall allocation. In terms of the choices we had to make, this year we went for a weekly increase in the overall pension rate and across all the weekly welfare payment rates. We increased the fuel allowance in the context of energy costs and the weekly rate of the fuel allowance. We also expanded the fuel allowance this year for the first time to working families. As I said, that kicks in from this week. We have made the changes. It is very focused on targeted areas. I hear the Deputy, however, and I hear him in the context of budget 2027. Perhaps he might have a good chat with our colleague, the Minister for public expenditure, in relation to that too.