Linking Social Welfare Payments to Cost of Living by Area

[geraghd]

Rather than broad sweeping cuts in social welfare payments, what would people think of the feasibility and legitimatcy or otherwise of linking payments at a very broad level to cost of living.

I believe the equivalent of jobseekers payments in the UK are the same no matter where you live (Im open to correction on this). When I was living in the UK, it seemed utterly unfair that someone living in London might get the same payments as someone living in Armagh or Stirling.

Similarly someone living in Dublin gets the same as someone living in Carrick-on-Shannon.

This could be done at a very broad level, such that Dublin payments (single Adults for example) would be kept the same at ~€204.
People in Leinster and cities could be paid ~€200.
People living in the midlands paid ~€195.
And all others paid ~€190.

Such a gradient would be applicable to all payments.

Of course there would be issues about people being on the border and such, but no system is completely fair, and would go some way in being fairer than it is now, and of course in reducing the welfare bill.

Also, it would reduce the political fallout of a broad sweeping cut in welfare payments and thus could be more palatable.

[Wendy]

Rather than broad sweeping cuts in social welfare payments, what would people think of the feasibility and legitimatcy or otherwise of linking payments at a very broad level to cost of living.

I believe the equivalent of jobseekers payments in the UK are the same no matter where you live (Im open to correction on this). When I was living in the UK, it seemed utterly unfair that someone living in London might get the same payments as someone living in Armagh or Stirling.

Similarly someone living in Dublin gets the same as someone living in Carrick-on-Shannon.

This could be done at a very broad level, such that Dublin payments (single Adults for example) would be kept the same at ~€204.
People in Leinster and cities could be paid ~€200.
People living in the midlands paid ~€195.
And all others paid ~€190.

Such a gradient would be applicable to all payments.

Of course there would be issues about people being on the border and such, but no system is completely fair, and would go some way in being fairer than it is now, and of course in reducing the welfare bill.

Also, it would reduce the political fallout of a broad sweeping cut in welfare payments and thus could be more palatable.

Don't forget that Dublin residents have much more direct access to the biggest centre for jobs in the country; the rest of us have to incur the expense of travelling for interviews and even knocking on doors in the hunt.

[jpc]

Forget it.
The admin and testing would eat 110% of the proposed savings.

[geraghd]

Forget it.
The admin and testing would eat 110% of the proposed savings.

Why would admin and testing be so expensive? The only test would be whether someone lives within a certain boundary (electoral boundaries could suffice). Therefore a simple addition to the current software would select people by address for the relevant rate of payment. There wouldn't need to be any in-depth cost of living survey done either, as it would simply be divided into as few as 3 or 4 areas as outlined above, and cost of living (for example determining the specific rate for Dublin as opposed to Leinster) could easily be taken from research that is out there already (Consumer Price Index for example).

[geraghd]

Don't forget that Dublin residents have much more direct access to the biggest centre for jobs in the country; the rest of us have to incur the expense of travelling for interviews and even knocking on doors in the hunt.

That's a fair point.

[ArtyQueing]

Too awkward to administer

[liamfoley]

Cost benefit analysis please. Would it save more money than it would cost to administer.

[geraghd]

Cost benefit analysis please. Would it save more money than it would cost to administer.

I would imagine that it would be zero (or next to zero) to administer. Existing staff in the department could look at cost of living at a superficial level as I mentioned above. Im sure a university undergrad could even do this for their second year thesis, and it might be considered an over-analysis.

Then apply the rate according to address (addresses are already on the Department's databases). At most, an additional parameter would have to be inputed into the existing software.

[geraghd]

Too awkward to administer

Why?