Cost-of-living crisis sees huge surge in additional needs payments from the State
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The number of households granted additional needs payments by the Government almost doubled last year as families were hit by the impact of the cost-of-living crisis.
New figures from the Department of Social Protection show that 97,224 additional needs payments were awarded in 2022, compared to 55,552 in 2021. It comes as the Society of St Vincent de Paul has said it received the largest number of calls from people seeking support last year since the depths of the economic crash.
In relation to the surge in additional needs payments, the department said: "The category with the largest number of payments is the housing category, which includes payments for necessary items including bedding, flooring, furniture, household appliances and repairs or replacement of household appliances. Support for fuel and utility bills, travel costs and clothing were also significant."
The payments can be made to help meet expenses that a person cannot pay from their weekly income. The rise in payments came amid the spike in energy costs and fuel prices.
Jim Walsh, spokesperson for St Vincent de Paul (SVP), said the charity had received 220,000 calls last year — up 15% compared with the number in 2021 and the highest since the recession, if not ever.
"The calls reflect the additional needs [payments] - utility bills and energy and food were very strong. Coming up to Christmas a lot of people needed extra help," Mr Walsh said. "There were requests for help with furniture and household goods and during the year education was a big one — not only back to school but also assistance with third level."
He said a SVP education bursary assisted 600 young people attending third level, some of whom would already have received Susi grants. He added that in some cases the bursary support was the difference between the student being able to attend college or having to turn down the offer.
Mr Walsh said:
Ciaran Nugent, economist with the Nevin Economic Research Institute, highlighted data from Eurostat for last year which showed that 20% of people in Ireland are at risk of poverty and social exclusion.
"As average wages are down in real terms this year by close to 6%, we're seeing more and more people struggling to make ends meet and this will likely get worse before it gets better," he said.
"Latest data shows an increase of 60% in the numbers in 2021 of workers in material deprivation, despite almost record employment growth. Of course, this was a growing issue in 2019, even with strong wage and employment growth.
"The main issue is and has been housing with more and more workers in receipt of HAP [Housing Assistance Payment]. In the short term, tackling vacancy and regulating short-term letting could have immediate impact. In the medium to long term, the State should concentrate on building social housing."