The increase of welfare payments in a united Ireland could cost taxpayers €22 billion a year, an Irish government report has found.
The paper by The Department of Social Protection looks at the impact of merging welfare systems in the event of reunification.
The document sets out that the cost of applying the most generous welfare rates from both sides of the border at €21.9 billion a year above the taxes collected for social protection.
The emergence of the report confirms for the first time that the Irish government is considering the financial impact of a united Ireland.
The figures in the report, which was completed in December 2023, has been reported by the Sunday Times.
“A cross comparison of social welfare systems and costs in Northern Ireland and the Republic of Ireland — an all-island perspective”, confirms that key entitlements, including carer support, jobseeker, child benefits and pensions, are higher south of the border.
Figures, show that disability supports are more generous in the north, where 37% of people receive the payment, compared with just 6.4% in the south.
Irish and British authorities, including Taoiseach Micheál Martin and Tánaiste Simon Harris are due to meet British Prime Minister Keir Starmer and Secretary of State Hilary Benn at a summit in Liverpool this week.
Former Taoiseach Leo Varadkar says there is a “strong economic case for unification” and has predicted the north’s economy will grow faster as part of a united Ireland.
“Pensions, welfare payments and public sector salaries would, over time, be equalised upwards, to match those in the Republic,” he wrote in the Sunday Times.
“This would mean more money circulating in the economy.
“Adopting the euro would mean an immediate fall in interest rates, giving a financial boost to mortgage holders and businesses with borrowing and those looking to expand.”
However, he added, there are questions around money that need to be answered before a border poll.
“Northern Ireland receives a considerable subvention from Britain and while London might agree to phasing it out, it’s fanciful to think that this would be for long.
“It is also likely that it would seek that the new Ireland should take on Northern Ireland’s share of the UK debt and pension liabilities and it could seek an agreement on security and defence. We should be ready for this.”
Recent opinion polls have shown mixed results on the constitutional question, with overwhelming support for a united Ireland south of the border.
In contrast, polls show a majority in the north favour the status quo.
A recent poll indicated the margin between those against and in favour of reunification was narrowing in the north.
The LucidTalks poll found that 48% of people in the north favour current arrangements and 41% back reunification.
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