Dáil Éireann debate -
Wednesday, 17 Nov 1999

Vol. 511 No. 1

Written Answers. - Social Welfare Payments.

Brendan Howlin

Question:

33 Mr. Howlin asked the Minister for Social, Community and Family Affairs his response to the call made by NESC in its recent report for the setting of a new benchmark for social welfare payments and the indexing of payments to keep them in line with the general standard of living; and if he will make a statement on the matter. [23631/99]

Liz McManus

Question:

42 Ms McManus asked the Minister for Social, Community and Family Affairs if he will establish a new set of targets to be achieved over the next few years in view of the fact that the target levels for payments in the report of the Commission on Social Welfare were set almost 15 years ago and in different economic circumstances; and if he will make a statement on the matter. [23627/99]

Proinsias De Rossa

Question:

76 Proinsias De Rossa asked the Minister for Social, Community and Family Affairs his views on the proposals from the Share the Wealth Campaign, Senior Citizens Parliament and Conference of Religious of Ireland to index improvements in weekly social welfare rates to a percentage of average earnings, average industrial earnings or growth in GNP as the key way to address the problem of income inadequacy. [23603/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

I propose to take Questions Nos. 33, 42 and 76 together.

This Government is committed to ensuring that everyone has the opportunity and incentive to participate fully in the social and economic life of the country. Income adequacy is a concept which must be viewed in the context of the prevailing living standards enjoyed by the population as a whole. Accordingly, Government action is geared to ensuring that all relevant policy areas covering taxation, employment, social welfare, occupational pensions and others help those concerned to move out of poverty and live in a manner compatible with human dignity. This Government's commitment to social inclusion in the broad sense is evident in the national development plan.

Within this framework, the social welfare system has a central role to play. This Government is committed to at least maintaining the value of social welfare payments in real terms and, indeed, recent years have seen significant increases in excess of inflation. For example, between 1995 and 1998, social welfare payments increased by some 13% to 14% compared to a total rise in the consumer price index of less than 6% and an increase in gross average industrial earnings of about 11%. Furthermore, all social welfare rates are now at or above the minimum rates recommended by the Commission on Social Welfare meeting a key target of both Partnership 2000 and NAPS. We have recently reaffirmed our commitment to increase the old age contributory pension to £100 per week and further undertaken to also increase the non-contributory pension to this level by 2002. In addition, we have committed ourselves to increasing all social welfare pensions for older people in line with average earnings over the lifetime of this Government. These actions have led to a tangible increase in the real incomes of those dependent on social welfare and have been a key contributory factor in reductions in deprivation and consistent poverty.

Now that the Commission on Social Welfare recommendations have been achieved, it is timely that the future direction of social welfare rates is examined and various organisations have furnished their views on this issue. However, this is not a simple matter and each of the methods proposed carry their own particular implications, including potential employment and budgetary implications, which need to be carefully considered before any final decisions can be made. There may also be some methodological issues which would need to be addressed such as the availability of a readily accessible data for measurement purposes and the incorporation of secondary benefits into calculations of adequacy.

The future direction of social welfare rates generally is under continuing review within my Department and all relevant research from the ESRI, Combat Poverty Agency and others such as the national pensions policy initiative will be taken into account in this regard. As indicated, this must also take account of the wider economic and financial implications as well as complementary developments in other areas of Government policy such as a national minimum wage and the employment action plan. This issue is also addressed by the NESC in its strategy document, Opportunities, Challenges and Capacities for Choice, which will be an important input into the discussions on a possible successor to Partnership 2000. No doubt, the outcome of these discussions will also be a significant contribution to considerations on social welfare policy and income adequacy in general.