One of the Government's key objectives is the establishment of an inclusive society where everyone has the opportunity and the incentive to participate in the social and economic life of the country.
With specific regard to increases in social welfare rates, developments in this area in recent years have been determined having regard to the commitments contained in 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, ranging from 100 per cent to 123 per cent of the minimum rate. This is in keeping with the commitment in both Partnership 2000 and the national anti-poverty strategy that the minimum rates would be achieved for all rates by the end of 1999. I am delighted to be able to do so.
In addition, another substantial step was made towards increasing the old age contributory pension to £100 by 2002, as provided for in An Action Programme for the Millennium, with an increase of £6 per week announced in the 1999 budget following a £5 per week increase in 1998. The 1999 budget also provided increases in child benefit – £3 per month for the first and second children and £4 per month for subsequent children which, together with increases in the weekly income thresholds for the family income supplement, will also be of significant help to many low income households. Similarly, low-income farmers and certain fishermen will benefit from the new farm assist and fishing assist measures contained in the 1999 Social Welfare Bill which are specifically geared towards supporting those most in need.
In general, there have been significant real increases in social welfare rates in recent years. For example, between 1995 and 1998, social welfare payments increased by 13 per cent to 14 per cent compared to a total rise in the consumer price index of less than 6 per cent over the same period. The changes announced in the 1999 budget amount to an increase of 4.3 per cent in the general rate and over 7 per cent for pensioners compared to an expected inflation rate of around 2 per cent and expected growth in average industrial earnings of about 5 per cent.
In relation to future increases a number of factors will have to be taken into account. It will remain a priority to ensure that the value of payments will, at the least, be maintained in real terms. In addition, as stated previously, this Government is committed to raising the old age pension to £100 per week – a rate of increase expected to significantly exceed inflation.
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, of course, also take account of other considerations, notably incentives to employment, budgetary considerations, etc.
This process will be informed by all relevant research and data, including the ESRI's Review of the Commission on Social Welfare's minimum adequate income and the national pension policy initiative, Securing Retirement Income, as well as the research referred to by the Deputy. The forthcoming report from the ESRI on recent poverty trends, 1994 to 1997, expected by Easter 1999, which will update the 1994 Living in Ireland survey on which the original NAPS targets were based, will also have an important role to play in this regard.