asked the Minister for Social Welfare if he recognises the hardship and despair which was caused before Christmas to pensioners, the chronically ill and disabled by his decision to reduce the Christmas bonus by 25 per cent; and if he intends to recompense this section of the community in the near future for the loss incurred.
Written Answers. - Social Welfare Benefit.
23.
A Christmas bonus amounting to 75 per cent of the weekly entitlement was paid to all long term social welfare recipients in the week ending 7 December last. In all some 524,000 recipients benefited from this special payment at a cost of £20.4 million. This was the first time the long-term unemployed were included. Some 105,000 persons are at present receiving the long term rate of unemployment assistance. Because of the consequential increase in the numbers benefiting from the Christmas payment and the limited resources available, the bonus was fixed at 75 per cent of the weekly payment rather than a double payment as in previous years. This was the most equitable arrangement and the payment provided a very worthwhile addition to the spending power of both pensioners and the long term unemployed at Christmastime.
This Government are fully committed to protecting the living standards of social welfare recipients. During the period June 1983 to July 1985 long term payments such as pensions have been increased by some 28 per cent and the long term unemployed have received an increase of some 33 per cent. The increase in the consumer price index for the period mid-1983 to mid-1986 is expected to be in the region of 20 per cent. Further increases in the rates of social welfare payments will be announced in the budget.