The 1998 budget provided for a special increase of £5 per week in the maximum personal rates of payment for some 270,000 pensioners aged 66 and over, with pro rata increases for a further 54,000 pensioners on reduced rate contributory pensions. These increases marked a considerable first step in meeting the commitment in the Government's action programme to increase the old age contributory pension to £100 per week by the year 2002. In addition, qualified adult allowances were increased by 3 per cent in general giving actual increases of between £1.20 and £1.50.
The question of future increases in social welfare payments, including the level of increases for old age pensioners and qualified adults, is a matter for consideration by the Government in a budgetary context in the light of available resources and having regard to the commitments contained in the Government programme An Action Programme for the Millennium, Partnership 2000 and the National Anti-Poverty Strategy.