Dáil Éireann debate -
Tuesday, 27 Apr 1993

Vol. 429 No. 6

Written Answers. - Social Welfare Beneficiaries.

Peter Barry

Question:

84 Mr. Barry asked the Minister for Social Welfare his views on the statement made by the Justice Office of the Conference of Major Religious Superiors in their budget document that the budget failed to tackle adequately the cause of poverty and social exclusion in this country; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

The measures announced in the recent budget, and continued in the Social Welfare Act, 1993, significantly improve the position of those who depend on social welfare for their income. A general increase of 3.5%, which is ahead of the projected rate of inflation for 1993, maintains the real value of payments for some 800,000 recipients and their 700,000 dependants. Those on the lowest payments received a higher increase of 4.9%

Child Benefit was increased to £20 for each of the first three children, and the increases in the upper limits of Family Income Supplement will result in an additional £12 per week for families at work on low pay. A special grant of £200 for mothers on the birth of twins.

Other measures included an increase of 11.7% in the Carer's Allowance and increases in both the minimum and maximum payments of Maternity Benefit, bringing them to £65 and £159 respectively.

I have also improved the situation for unemployed persons who wish to take up part-time work by substantially increasing the amount of earnings which can be disregarded in assessing means for Unemployment Assistance purposes to the equivalent of the normal daily rate of Unemployment Assistance plus an additional £15 per day. A married man with two children can earn up to £34.42 per day for each day worked without affecting the rate of Unemployment Assistance payable for other days in the week.

These improvements will cost an additional £180 million, bringing the annual expenditure on social welfare to £3.7 billion, or over £10 million for each day of the year.

While the primary function of social welfare continues to be the provision of an income for those who, through illness, unemployment or old age, are unable to support themselves or their families, an adequate and efficient income maintenance system cannot, of itself, be regarded as a complete response to the needs of those who depend on the State for their livelihood. Over the years, I have introduced a considerable element of flexibility into the system which facilities those who wish to take up part-time work, voluntary work or to resume "second chance" education without affecting their weekly payments. Almost 2,400 long term unemployed people are currently engaged in full-time education at second and third level and I propose to extend that further over the coming year.

The Government's allocation for supporting voluntary organisations who work to tackle poverty and social exclusion was also substantially increased in the budget, from £3.484 million in 1992 to £4.73 million in 1993. The allocation for the Combat Poverty Agency has increased from £1.35 million to £1.48 million.

Unemployment itself is ultimately the most significant root cause of poverty particularly for families. The Government's policy in the 1993 Budget was strongly pro-employment. The thrust of the provisions in the budget is to strengthen the basis for jobs growth this year and into the future. Measures in the Budget provide sound management of the economy and building business and consumer confidence as the main vehicle for accelerating the pace of job creation.

The budget also recognised the importance of fiscal policy in directly assisting job creation through a significant fiscal injection, including the Cohesion Fund, which will result in a year on year increase of almost £500 million, or 27%, in the Public Capital Programme.

The general thrust of the budget and Estimates policy has, as its paramount aim, the effective tackling of unemployment, the alleviation of poverty and the creating of new jobs for those currently out of work.