Deirdre Clune
Question:230 Ms Clune asked the Minister for Social, Community and Family Affairs if he will increase the level of social welfare allowances in view of the recent sharp rise in inflation. [9769/98]
Written Answers - Social Welfare Benefits.
The Economic Background to the 1998 budget, published by the Department of Finance on budget day, projected an average increase of 2 per cent in the consumer price index in 1998. The average consumer price inflation, published by the Central Statistics Office, for the year to March 1998 was of the order of 1.6 per cent, while the year-on-year rate was 2.1 per cent.
The 1998 budget provided for significant increases in all social welfare payments. In line with the commitment in the Action Programme for the Millennium, the personal rates of pension payments made to elderly persons in society were increased by £5 per week which represents percentage increases ranging from 6.4 per cent to 7.4 per cent. All other personal rates of payment were increased by £3 per week with the result that all long-term social assistance payments and all short-term social insurance payments increase by 4.4 per cent.
These budgetary increases mean that, in real terms, social welfare payments will rise by 2.4 percentage points to 5.3 percentage points above forecasted inflation in 1998 and are well ahead of increases given in the immediately preceding years. Payments of these increases will be made at the beginning of June next, two weeks earlier than in 1997, thereby protecting and enhancing the real value of all social welfare payments.