Michael D. Higgins
Question:89 Mr. M. Higgins asked the Minister for Social, Community and Family Affairs his views on the problem of income inadequacy and the growing proportion of people living in poverty. [2614/99]
Written Answers - Anti-Poverty Strategy.
The issue of income adequacy is one which is being addressed in a number of contexts both within my Department and at the Cabinet Committee on Social Inclusion. Indeed, income adequacy is one of the five key themes of the national anti-poverty strategy which is being implemented across all Government Departments.
Adequate rates of payment must be a central objective of income support. As the national anti-poverty strategy states, income support policies should aim to provide all those concerned with sufficient income to enable them to live in a manner compatible with human dignity.
As regards social welfare payments, current policy is determined having regard to the commitments contained in the Government's An Action Programme for the Millennium, Partnership 2000, and the national anti-poverty strategy. The recent budget increases mean that all rates of payment will be at or above the minimum rates recommended by the Commission on Social Welfare. In addition, a substantial step was made towards increasing the old age contributory pension to £100 by 2002,
The 1999 budget also provided significant increases in child benefit – £3 per month for the first and second children and £4 per month for subsequent children which will benefit some 513,000 families with a total of 1.2 million children. Changes to the family income supplement which provide for calculation on a net income rather than a gross income basis, as well as increases in the weekly income thresholds announced in the 1999 budget, will also be of significant help to many low income households.
Similarly, low income farmers will benefit from a new scheme specifically geared towards supporting those most in need. The new scheme – farm assist – will cover around 13,600 people, including existing smallholders unemployment assistance recipients, at a cost of £45 million in a full year.
It is intended, in the context of NAPS, to consider the issue of income adequacy in its broad sense, including the areas of taxation, employment, etc. In this regard, my Department intends to examine the role of social welfare rates and, in particular, the appropriate future direction for social welfare payments, now that the Commission on Social Welfare's minimum rates have been achieved. This examination will also take account of other considerations, notably incentives to employment, budgetary considerations, etc.