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Dáil Éireann debate -
Thursday, 9 Nov 2000

Vol. 525 No. 4

Written Answers. - Social Welfare Payments.

Brian O'Shea

Question:

24 Mr. O'Shea asked the Minister for Social, Community and Family Affairs if, in the forthcoming budget, he has plans to index link social welfare payments with earnings; and if he will make a statement on the matter. [24943/00]

Under the terms of the Programme for Prosperity and Fairness, a working group is being established which will have a mandate to examine the range of issues associated with the benchmarking and indexation of social welfare payments. This will include their long-term economic, budgetary, PRSI contribution, distributive and incentive implications, in light of trends in economic, demographic and labour market patterns. It is envisaged that the working group will also take account of work being carried out to review the underlying methodology of the national anti-poverty strategy.

A chairperson for the group has now been appointed and the social partners and relevant Departments have been invited to formally nominate their representatives to the group.
As outlined in the programme, there are complex issues involved in developing a benchmark for adequacy of adult and child social welfare payments, including the implications of adopting a specific approach to the ongoing uprating or indexation of payments. While the Deputy cites earnings as a possible index, this is just one of a number of options that may be available for consideration by the group. The Government recognises that the higher than expected inflation level this year has had the effect of reducing the value of the last budget's increases in social welfare payments. I can assure the House, that the Government will take careful account of the recent increased level of inflation in determining the appropriate level of social welfare increases for 2001.
As regards indexation policy beyond this, however, it would not be appropriate to pre-empt discussions of the group that has been set up to look at this complex issue specifically.
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