The last budget, which was announced in early December, 1998, provided for an increase of £6 a week for old age pensioners, together with an increase of £3 a week for all other social welfare recipients aged under 66 years. The overall cost of the various improvements which I announced at budget time amounted to £192 million in 1999 and £316.5 million in a full year, the largest social welfare budget package announced for many a year.
The increased weekly rates of social welfare payments took effect from the beginning of June 1999. The additional cost of bringing these improvements, including the consequential changes to the weekly FIS limits, forward by eight weeks to the beginning of April would have been £31.7 million in 1999.
The question of the level of future increases to be provided, together with the effective dates of those increases, are matters to be decided in a budgetary context having regard to the available resources and in the light of the Government's other priorities.