Vol. 505 No. 7
9 Mrs. B. Moynihan-Cronin asked the Minister for Social, Community and Family Affairs his views on the future of social insurance in view of the increase in the number participating in the workforce and paying PRSI; if the range and level of social insurance benefits will be, at least, maintained or improved; and if he will make a statement on the matter. [14597/99]
The Government, in its action programme, is committed to the development of the social insurance system and to increasing the maximum personal rate of contributory pensions to £100 per week by 2002. Significant progress towards achieving this target has been made in the past two budgets which provided for a total increase of £11 per week, to £89 per week, in the maximum personal rates of contributory pensions. This represents an increase of 14 per cent since the Government took office.
Apart from pensions, the social insurance system provides for a range of important short-term benefits such as unemployment and disability benefits. These benefits have been subject to ongoing improvement over the years. For example, a new bereavement grant was intro duced earlier this year replacing the death grant. The grant is increased from £100 to £500 and cover was extended to include the self employed and modified PRSI contributors.
My Department has recently set up a working group on social insurance which comprises representatives of the principal social partners and officials from my Department. The purpose of the group, which met for the first time late last month, is to examine issues relating to the ongoing development of the social insurance system as it relates to employed contributors. This will include examining the possibility of providing and financing new benefits such as a carer's benefit. It is hoped that the deliberations of the group will inform all parties on the issues involved and explore the level of consensus as to future priorities.
In recognition of the importance of the pensions area generally and social insurance in particular a number of important developments have already taken place, for example, the national pensions policy initiative. The financial position of the social insurance system is secure in the short term. As Deputies will be aware, the 1998 Social Welfare Act provided for regular actuarial reviews of the social insurance fund. The legislation requires that the first such review be completed by 31 December 2002, with subsequent reviews every five years. These reviews will enable the future of the fund to be kept under regular review.
Obviously, the ratio of total social welfare spending to national income has been falling steadily. Ireland is now the second lowest country in the EU after Portugal in its spend on social welfare. What is the ratio of the social insurance fund to the total social welfare budget in recent years?
I and other Deputies welcome the possible provision of additional benefits, particularly the carer's benefit which carers organisations have been seeking for years. I urge the Minister to introduce that in next year's budget.
The Minister mentioned actuarial reviews and the national pensions policy initiative. What size fund does the Minister believe it is necessary to maintain with respect to the entire social welfare fund?
On carer's benefit, the reason mentioned is the reason we established the group. I initiated discussions with some of the social partners. I firmly believe carer's benefit will be required into the future given that the actuarial review shows that, over an extended period, the number of elderly people who need care will increase dramatically.
I am not sure to what the Deputy refers regarding the social insurance fund. The fund has gone into the black over the past few years for first time in a long time. A number of initiatives, such as the bereavement grant and pensions for those who first make contributions after the age of 56, have been taken by me in this area with the aid of the surplus in the social insurance fund. However, we must plan for the future and the same applies to Exchequer funding generally. I have often said that, while we politicians might like to spend surplus revenue, we must prepare for the future.
The Minister said the social insurance fund has gone into the black and that the various benefits being paid at present are an important part of our social infrastructure. Has the Minister figures to show what proportion of the social welfare budget benefit payments comprise over an extended period?
Those figures are easily found in the Estimates. There is a divide between social assistance and social insurance. I do not have with me the figures for the percentage of the fund that part comprises over an extended period.
Could the Minister get those figures?
We could endeavour to do so.
