2016 MINIMUM ESSENTIAL STANDARD OF LIVING VPSJ Director eam Dr. - - PowerPoint PPT Presentation

▶

Apr 15, 2023 268 likes •522 views

2016 MINIMUM ESSENTIAL STANDARD OF LIVING VPSJ Director eam Dr. Bernadette Mac Mahon D.C. Research T Research Associate Robert Thornton Researcher Noreen Moloney INTRODUCTION MESL data for 90% of households in Ireland 142 Household

SLIDE 1

MINIMUM ESSENTIAL STANDARD OF LIVING

2016

Research T eam

VPSJ Director

Dr. Bernadette Mac Mahon D.C.

Research Associate Robert Thornton Researcher Noreen Moloney

SLIDE 2

INTRODUCTION

MESL data for 90% of households in Ireland

› 142 Household Compositions › Urban and Rural

Benchmark for assessing income adequacy

› Social Welfare & Minimum Wage › Various employment patterns & scenarios

SLIDE 3

1.2%
0.5%
0.2% -0.9%

0.04%

0.5%
0.7%
0.2%
0.7%
0.3%
1.1%
1.6%

100 200 300 400 500 600 700 800 900 TP 1 TP 2a TP 2b TP 3 TP 4 OP 1 OP 2a OP 2b SA CP LP PC

Core MESL 2016

URBAN

Excludes Housing, Childcare & Effect of Secondary Benefits

SLIDE 4

Change in Core MESL and CPI

90% 95% 100% 105% 2008 2009 2010 2011 2012 2013 2014 2015 2016

CPI MESL

Core MESL down -

0.7%

Decrease of -1.6%

since 2014

2010 low point for

prices

Core MESL up by 4.6%

from 2010 to 2016

SLIDE 5

2.5 %

0.0 % 2.5 % 5.0 % 7.5 % 2013 2014 2015 2016

MESL (Private Rent & Childcare) CPI

Change in MESL (inc Rent & Childcare)

Private rents up an

average of 9.2%

Rents accelerated

growth in last 3 years

MESL costs up 6.9% in

that period

CPI shows drop of -

0.7% for same period

SLIDE 6

MESL 2016 SOCIAL WELFARE

SLIDE 7

Social Welfare 2016

State Pension
Fuel Allowance
Child Benefit
‘Christmas Bonus’
Majority of rates

unchanged

JA, OFP, QA & QCI
Rent Supplement

thresholds maintained

SLIDE 8

Percent of MESL need met by SW

ADEQUACY

2010 2011 2012 2013 2014 2015 2016 70% 85% 100% 115% TP 2a TP 2b OP 2a SA LP

SLIDE 9

Social Welfare Adequacy

88% 93% 80% 90% 75% 86% 92% 76% 82% 87% 96% 126%

100 200 300 400 500 600 700 800 900 TP 1 TP 2a TP 2b TP 3 TP 4 OP 1 OP 2a OP 2b SA CP LP PC Housing MESL Core* Medical Card Value Household Income

SLIDE 10

MESL 2016

NATIONAL MINIMUM WAGE MINIMUM INCOME STANDARD

SLIDE 11

Income Changes 2016

NMW increase
PRSI
USC
FIS thresholds
Child Benefit
GP for Under 6’s rolled out

SLIDE 12

National Minimum Wage Scenarios

Does the Minimum Wage provide the basis of

an adequate household income?

Examine multiple scenarios
Households with children – Social Housing
T

wo Parents – Single & Dual income

One Parent – Part-time & Full-time
Other Working Age – Private Rented Housing

SLIDE 13

Minimum Income Standard

The gross income a household needs in order to

afford a minimum standard of living. › It takes account of the potential tax liability and social welfare entitlements of the household in question

Iterative process
Assess the adequacy of net household income, on

the basis of incremental increases in gross salary

SLIDE 14

SINGLE ADULT

FULL-TIME PRIVATE RENT

Expenditure MESL €223 per week Rent €200 per week Minimum Wage Income €332 Net Salary €91 Shortfall Minimum Income Standard €515 Gross per week €13.75 per hour 56 hours NMW employment

78% 13.75

100 200 300 400 500 600 NMW MIS

SLIDE 15

TP Minimum Wage Adequacy

TP 1 TP 2a TP 2b TP 3 TP 4

100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1FT 1FT & 1PT 2FT 1FT 1FT & 1PT 2FT 1FT 1FT & 1PT 2FT 1FT 1FT & 1PT 2FT 1FT 1FT & 1PT 2FT MESL Core* Housing (SH) Childcare Medical Card Value Gross Salary (Joint) Net Household Income

SLIDE 16

TWO PARENT

Pre-School & Primary School

115% 107% 99%

100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1FT NMW 1FT & 1PT NMW 2FT NMW Childcare Housing (SH) MESL Core*

NATIONAL MINIMUM WAGE SOCIAL HOUSING

SLIDE 17

9.35

13.65

100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Social Housing Private Rent

Childcare Housing MESL Core*

TWO PARENT

Pre-School & Primary School MINIMUM INCOME STANDARD 2 FULL-TIME

MIS

Social Housing

€9.35 per hour NMW + €0.20

Private Rented

€13.65 per hour NMW + €4.50

Needs to earn 1½

times the NMW

SLIDE 18

OP Minimum Wage Adequacy

OP1 OP 2a OP 2b

100 200 300 400 500 600 700 800 PT FT PT FT PT FT

MESL Core* Housing (SH) Childcare Medical Card Value Gross Salary Net Household Income

SLIDE 19

ONE PARENT

Pre-School & Primary School

123% 97%

100 200 300 400 500 600 700 800 900 1,000 1PT NMW 1FT NMW Medical Card Value Childcare Housing MESL Core*

NATIONAL MINIMUM WAGE SOCIAL HOUSING

SLIDE 20

ONE PARENT

Pre-School & Primary School

PRSI

PAYE PAYE OFP MIS €16.45

300 350 400 450 500 550 600 650 700 9.15 10.15 11.15 12.15 13.15 14.15 15.15 16.15 17.15 Gross Salary Net Salary T

tal Income

MESL

MINIMUM INCOME STANDARD SOCIAL HOUSING

SLIDE 21

ONE PARENT

Pre-School & Primary School

16.45 26.75

100 200 300 400 500 600 700 800 900 1,000 Social Housing Private Rent

MINIMUM INCOME STANDARD

MIS

Social Housing

€16.45 per hour NMW + €7.30

Private Rented

€26.75 per hour NMW + €17.60

Needs to earn 3 times

the NMW

SLIDE 22

MESL Social Housing v Private Rented

250 500 750 1,000 1,250 TP 1 TP 2a TP 2b TP 3 TP 4 OP 1 OP 2a OP 2b

Social Housing Private Rent MESL

SLIDE 23

Conclusion

Core MESL down for second year in a row
CPI tends to under estimate degree of change in MESL
MESL with Rent & Childcare is up 6.9% in last 3 years
Social Welfare is meeting a greater proportion of MESL need
Change in NMW lead to net income increase
Increasing cost of private rent lead to deeper inadequacy for those unable

to access social housing (Differential Rent)

Need for access to adequate & affordable housing
Differentiate child related payments by age – a household with an

adolescent needs a higher level of support

Examine withdrawal rate of supports such as FIS and OFP

SLIDE 24

MINIMUM ESSENTIAL STANDARD OF LIVING

2016

Research T eam

VPSJ Director

Dr. Bernadette Mac Mahon D.C.

Research Associate Robert Thornton Researcher Noreen Moloney