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Dáil Éireann debate -
Thursday, 23 Mar 1995

Vol. 451 No. 1

Written Answers. - Social Welfare System.

Dermot Ahern

Question:

15 Mr. D. Ahern asked the Minister for Social Welfare if he will ensure that we have an effective welfare system which will minimise the risk of poverty in view of the distribution of resources in the 1995 Budget which showed that eliminating or at least minimising poverty was not a major priority. [6123/95]

The improvements in the social welfare area which I am implementing this year will cost £90 million in 1995 and £212 million in a full year. This is additional expenditure and is not based on cutbacks in other areas of social welfare which was a device used by previous Governments. Total expenditure this year on social welfare will be in excess of £4,000 million. What is of real significance, however, and what distinguishes this budget from all previous budgets is the approach we have taken. The strategy in this year's social welfare budget is to give everyone a general increase and then to target particular areas of poverty with substantial additional resources. Families with children are universally recognised as being at greatest risk of poverty and in this year's budget I have taken a significant step towards addressing this issue.

The £7 per month across the board increase in child benefit announced in the budget which will cost over £90 million in a full year, demonstrates my firm and unwavering commitment to those who are at greatest risk of poverty in our society, namely, families with children. In the vast majority of cases the payment is made to women and recent research has shown that women tend to spend more of their income on children and on household expenses than men. Consequently, this payment is a particularly effective way of targeting resources. Directing income support for children through child benefit will also help relieve one of the worst poverty and unemployment traps in the existing systems, arising from the loss of child support when a person takes up employment.

The general increase of 2.5 per cent in weekly personal and adult dependant payments guarantees that everyone getting a social welfare payment will keep pace with the predicted rate of inflation this year and is being paid six weeks earlier than usual. In this way, their real income position is being maintained while substantial numbers will also benefit from the 35 per cent increases in child benefit and the other improvements in the system.
This year's budget also targets resources towards those who are generally recognised as being in particular need through improvements in the carer's allowance scheme, the extension of child income support where the child continues in full-time education, the increase from £10 to £25 in the minimum rate of unemployment assistance where an individual continues to live in the parental home, improved access to and benefit from free schemes, and significant improvements in the resources for employment support services and community and voluntary services.
In addition I have recently announced at the Copenhagen Summit on social development, this Government is committed to putting in place by the end of 1996, for the first time ever, a national anti-poverty strategy.
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