The Facts

The additional Christmas payment made to people on certain long-term welfare payments is more commonly known as ‘Christmas Bonus.’ People on short-term payments, Job Seekers Benefit and Illness Benefit do not qualify for the payment.

It has been paid (with significant variations in recipients and level) each year since it was introduced by then Minister for Social Welfare Michael Woods in 1980.

• From 1980-84 as a 100% bonus to pensioners only.
• From 1985 the long-term unemployed were included and the rate reduced to 75% to “finance this.”
• From 1986-88 the rate was reduced to 65% and others groups were included.
• From 1989 the rate was increased to 70%.
• For the last nine years it has been paid as a 100% payment.

During 1980s, the decision to grant the Christmas payment was taken annually in the weeks leading up to December; this announcement was usually preceded by protests from welfare organisations.

In 2008 the payment was made to around 1.3 million people: 940,000 recipients and an estimated 400,000 dependents. 

It costs around €200 million and it is not completely funded by the Department of Social and Family Affairs. Depending upon whether the cost is calculated as part of the entire expenditure on social welfare or if the contribution from the social insurance fund is excluded - it costs between 1% and 2% of the welfare budget.

The 2008 costs breakdown is as follows:

• Almost €192m for social welfare customers.
• Over €7m for certain FAS, VTOS, JI and CE recipients.
• €2m for income related payments through Department of Health and Children.
• Almost €1m to Rural Social Scheme.

State of the debate

In the run up to the 2008 budget there was speculation that the Christmas payment would be cut. In October 2008, Minister Hanifin announced that it would be paid asserting that: “Even with the challenging budgetary situation, the payment of this additional money to social welfare customers is a clear sign that helping those most in need of support remains the key priority for the Government.” A number of Government TDs went on the record welcoming this, including: Aine Brady , and Noel O’Flynn .

The Minister of Finance announced in the ‘mini-budget’ April 2009 that the Christmas Payment would not be paid in 2009.  There was a private members motion in April 2009 by opposition parties seeking for it to be paid. The motion was defeated.

In April 2009, Minister Hanafin said that the payment would be made ‘if there is a windfall’ or savings targets are exceeded.  Willie O’Dea reiterated this statement.   This debate can be seen to mirror debates in the 1980s where Michael Woods announced the payment would be made on the basis of ‘anti-fraud measures.’

The McCarthy Report (Bord Snip Nua) reiterated that the Christmas Payment should not be paid.