Social Security in a Unified Ireland

Abstract

ABSTRACT:Assuming a single regime for taxes and benefits, the article examines the implications of Irish unification for social security policy. It compares expenditure north and south, and considers how state pensions—the biggest area of benefits expenditure in both jurisdictions—should be treated in the transition to a unitary Irish state. It also compares north/south rates of poverty for children and pensioners, and the value of the most widely paid benefits, the state pension and child benefit. The Irish and British tax codes are applied to Northern Ireland earnings data in order to assess whether people will be better or worse off at different points on the income spectrum. Employers’ social insurance contributions are also modelled. Finally, data are presented suggesting that the impact of unity may be more positive than is generally assumed, in terms of both net contributions to social insurance and opportunities to reduce poverty.