I propose to take Questions Nos. 1, 5, 15 and 28 together. My views on the inadequacy of the basic rates of social welfare entitlements are already on record. I consider that they need to be greatly improved. Discussions are under way with the ESRI to give effect to the commitment in the programme for renewal to carry out a review of the minimum adequate income rates recommended by the Commission on Social Welfare. Draft terms of reference and a timescale for a study will be finalised in the next few weeks. The review will be completed by mid-1996. The completion of the ESRI review will coincide with the tenth anniversary of the publication in 1986 of the report of the Commission on Social Welfare.
The ESRI review will consider the adequacy of the rates of social welfare benefits and allowances. The study, along with ongoing reviews of the Commission on Social Welfare's recommendations and taking account of a number of other key reports expected, such as that of the expert working group on the integration of tax and social welfare, will form the basis for the formulation of proposals for improvements in the social welfare system in the years ahead.
The question of funding these improvements will be considered in the light of the resources available when the extent of the requirement is quantified and in the context of the commitment in the programme for renewal for the maintenance and development of the social insurance system. In the meantime, the priority rates recommended by the Commission on Social Welfare in 1986 have been implemented since 1994.
In addition, as the ERSI and others have identified families with children as being at greatest risk of poverty, I have taken a significant step towards addressing that issue in this year's budget. Social welfare and related improvements which I am implementing will cost £90 million in 1995 and £212 million in a full year. The increase in child benefit will account for 38 per cent of the cost of this year's budget improvements and almost 50 per cent of the full year cost.