asked the Minister for Social Welfare if she will estimate the cost of the increase in the social welfare payments that would be required to fully compensate social welfare recipients in a full year for the imposition of 15 per cent VAT on food, fuel, clothing and footwear, taking into account the weight of expenditure on these items shown in the household budget survey.
Written Answers. - Compensation for VAT Imposition.
171.
The expenditure patterns and weights derived from these in the household budget survey refer to all households. It is not possible to derive data specifically on social welfare recipients.
Any changes in the VAT rate are reflected in the CPI. Social welfare benefits have been increased in recent years more than enough to compensate for increases in the CPI. The rates will increase by 4 per cent in July (5 per cent for long term unemployed) compared to an estimated increase of 1-2 per cent in the CPI between mid-1986 and mid-1987.