Written Answers. - Social Welfare Benefits.
Jan O'Sullivan
Question:
205
Ms O'Sullivan
asked the
Minister for Social, Community and Family Affairs
the reason the increase in child benefit announced in budget 2000 will not be paid until September 2000 while other social welfare increases have already been implemented; the plans he has to change this; and if he will make a statement on the matter.
[18608/00]
Frances Fitzgerald
Question:
206
Ms Fitzgerald
asked the
Minister for Social, Community and Family Affairs
when child benefit increases are updated following the budget; the reason for this timetable; if it differs in timescale with changes in other allowances; and if he will make a statement on the matter.
[18620/00]
I propose to take Questions Nos. 205 and 206 together.
The 2000 budget provided for the largest ever investment in the child benefit scheme, amounting to some £35 million in 2000 and £106 million in a full year. The commitment of such significant funding to the scheme will enable the rates of child benefit to be increased by £8 per month in respect of the first two qualified children and by £10 per month in respect of the third and sub sequent qualified children, bringing the rates to £42.50 and £56.00 respectively. These increases will take effect from September of this year.
In devising the parameters of the budget 2000 package, account was taken of the overall level of resources available, the range of competing priorities and the need to target resources to those in greatest need.
In this regard, it should be noted some 40% of children are in families who are in receipt of weekly social welfare payments. These families face the highest risks of poverty and I was pleased, therefore, to be able to provide for the general increases in the rates of weekly social welfare payments to take effect from the first week of May 2000, four weeks earlier than last year. Indeed, since this Government has taken office, increases in weekly social welfare rates have been brought forward by six weeks from mid-June to the beginning of May. Next year, I intend to bring forward the implementation date for these social welfare increases further to coincide with the start of the tax year in early April 2001.
It is also my intention that the value of the child benefit scheme as an effective mechanism for channelling child income support will continue to be exploited to the greatest possible extent. In this regard, the Programme for Prosperity and Fairness includes a commitment that child benefit will be substantially increased over the period of the programme, with a priority focus towards £100 per month for the third and subsequent children.
Thomas P. Broughan
Question:
207
Mr. Broughan
asked the
Minister for Social, Community and Family Affairs
if he has reconsidered his decision not to seek compensation for social welfare recipients in view of the likely falling value of social welfare rates in 2000; and if he will make a statement on the matter.
[18786/00]
I refer the Deputy to my reply to Questions Nos. 28 and 29 on 30 May 2000.
Last December's budget provided for general increases of £4 for people under 66 and £7 increase for pensioners. The £7 increase for pensioners represents an increase ranging between 7.9% and 8.9%, while the £4 general increase represents an increase ranging between 5.2% and 5.6%.
Social welfare rates have improved significantly in real terms since this Government took up office. Over our three budgets to date we have, for example, increased the old age contributory pension by £18 per week, a 14% real increase, as compared to £7 per week – a 4% real increase in the same payment over the three budgets introduced by the rainbow coalition.
In the normal way when setting the revised rates of social welfare payments at budget time each year, full account is taken of actual inflation up to that date as well as the most up to date inflation projection for the following year. This approach ensures that any unexpected deterioration is fully compensated for and real improvements are assured. Furthermore the Programme for Prosperity and Fairness provides that over the period up to 2003, all rates of social welfare will be increased in real terms and substantial progress will be made towards a target of £100 a week for the lower rates of payment. For families, substantial progress will be made towards a target child benefit rate of £100 per month for the third and subsequent child.
The significant social welfare improvements which we have already made amount to almost £1 billion since we came into office. These together with the further improvements to which we are committed over the coming years demonstrate our guarantee that everyone will share in the benefits of social and economic progress.
