Dáil Éireann debate -
Wednesday, 4 Jul 2001

Vol. 540 No. 2

Written Answers. - Social Welfare Payments.

Derek McDowell

Question:

44 Mr. McDowell asked the Minister for Social, Community and Family Affairs if, in view of the summer report of the Central Bank, which forecasts a minimum inflation rate of 4.75% for 2001, he will urgently consider a compensation package for social welfare recipients; and if he will make a statement on the matter. [20109/01]

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

At £850 million, last December's social welfare budget allocation is the biggest ever and more than double last year's welfare package. This allocation will, to an unprecedented extent, direct the resources of the State at the needs of our disadvantaged citizens and communities.

Among the most significant of these improvements were an increase of £10 per week for pensioners, and £8 for other social welfare recipients. Additional increases were given to couples.

The £10 increase for pensioners represents an increase ranging between 10.4% and 11.7%, while the £8 general increase represents an increase ranging between 9% and 10.5%.

The annual average increase in the consumer price index is the benchmark against which increases in social welfare payments have normally been compared. It was predicted that the average inflation figure for 2001 will be 4.5%. Even if this figure were to be exceeded to the extent forecast recently by the Central Bank it is clear that this year's rate increases will represent substantial real increases.

Furthermore, as part of the process of aligning tax and social welfare changes by 2001, all of these increases have been paid four weeks earlier this year, from the beginning of April.

Significant increases in monthly child benefit are also being provided for families with children – £25 for each of the first two qualified children and £30 for each other qualified child. These increases, which range between 53.6% and 58.8%, also represent substantial real increases.

Social welfare rates have improved significantly in real terms since this Government took up office. Over our four budgets to date we have, for example, increased the old age contributory pension by £28 per week, a 19.1% 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.

The significant social welfare improvements which we have already made amount cumulatively to more than £1.8 billion in a full year since we came into office. These, together with the further improvements to which we are committed over the coming years, amply deliver on our guarantee that everyone will share in the benefits of social and economic developments.