Vol. 513 No. 2
49 Mr. Ferris asked the Minister for Social, Community and Family Affairs if he will request the Government to increase, in the Social Welfare Bill, further budgetary provisions and the current partnership talks, the £4 basic welfare rise in the 2000 budget to at least £6.50 to give claimants 50% median household income, as demanded by the share the wealth campaign. [1909/00]
The recent social welfare budget package, which is the biggest ever social welfare budget allocation amounting to more than £418 million on a full year basis, provides, inter alia, for a £7 a week increase for pensioners and a £4 a week increase for all other social welfare recipients. As part of the process of aligning tax and social welfare changes by 2001, these increases are being paid four weeks earlier this year, from the beginning of May.
The £7 weekly increase for pensioners represents an increase ranging between 7.9% and 8.9%, while the £4 increase represents an increase ranging between 5.2% and 5.6%. With average annual inflation expected to be 3% in 2000, these increases represent real increases ranging between 2.1% and 5.7%.
Last year's social welfare increases fulfilled the Partnership 2000 commitment to implement the minimum rates recommended by the Commission on Social Welfare before the end of the partnership. Following the recent budget increases, all payments will be at least £2.40 above the minimum CSW target rate, ranging between 103% and 130%.
The issue of the future direction of social welfare rates was examined by NESC in its strategy document: "Opportunities, Challenges and Capacities for Choice", which forms an important input into the new partnership discussions. The NESC strategy document noted that key considerations include benchmarking options such as 50% of average income threshold, a percentage of gross average industrial earnings, the up-rated maximum Commission on Social Welfare rate and indexing options such as linkage to some rate above inflation, increases in average incomes or increases in GAIE.
The future direction of social welfare payments has been raised by the social partners as part of the negotiations on a new national partnership agreement. Any decision in relation to this obviously has to await the conclusion of these negotiations.
