People are set to be 10% better off due to new improvements in Social Welfare payments starting tomorrow.

That is according to Social Protection Minister Heather Humphreys, who says the €1 billion package is about supporting society's most vulnerable.

There will be a €12 increase in the maximum rate of all core weekly payments — the largest increase in years — which will benefit over 1.5 million people.

'Putting money back in people's pockets'

The targeted measures coming into effect on January 1st include a significant expansion of the fuel allowance scheme and a €40 increase to the threshold for those eligible for the Working Family Payment.

Those with disabilities will be able to earn an extra €25 per week without it affecting their payment.

The Domiciliary Care Allowance will be increased by €20.50 per month.

Minister Humphreys told Newstalk that this plan is to support people during an expensive time.

"This is about putting money back in people's pockets", she said.

"The energy bills are higher, our grocery bills are higher and everyone is feeling the impact."

2E3C44Y Elderly woman takes out a euro note from her wallet. Concept of pension payments, savings at retirement, pensioner with money

10% better off

Minister Humphreys said that the once-off payments given to people before Christmas coupled with energy credits and the "across the board increases" announced today will see most people become "about 10% better off".

There was a double payment of the childcare allowance and a one off €500 payment to carers and individuals with a disability before Christmas.

However, the €12 increase is less than the €20 increase that campaigners had called for.

Susanne Rogers from Social Justice Ireland told Newstalk Breakfast that €20 a week would just about cover the rise in inflation that we’ve seen this year.

“€17 is needed to just stand still and then the extra couple of quid would go some way to see some reduction in the extra costs that people are experiencing", she said.

“But it would cost €17 extra just to put the same basket of goods on the table as this time last year.”