Vol. 428 No. 3
57 Mr. N. Ahern asked the Minister for Social Welfare the reason for the reduction in disability payments relative to wages over the past ten years with respect to changes in absolute levels and to alterations in pay-related benefit.
The basic rate of disability benefit has not fallen behind changes in earnings. In the period 1988 to 1991 there was an increase of some 15 per cent in both average industrial earnings and the basic rate of disability benefit.
I would also point out that the basic disability benefit rate has increased by substantially more than the rate of inflation. Last year we increased it by 6 per cent, which was twice the rate of inflation. This July, it will be increased by almost 5 per cent, again well above the rate of inflation.
The phasing out of pay related benefit with disability benefit is part of a policy of directing available resources towards those most in need by increasing the basic rate rather than pay related additions. This policy is broadly in line with the recommendations of the Commission on Social Welfare.
