In 2002, for the first time, increases in social welfare payments provided for in the budget will come into effect from the beginning of January. This will be a major advance on the position which applied heretofore.
When the Government came into office in 1997, budget increases in weekly social welfare payments were payable for only 29 weeks from early June. Child Benefit increases were payable for three months from September. Over the past four years I have ensured that social welfare recipients receive their budget increases earlier. For example, this year's increases in weekly payments were payable for 39 weeks from the first week in April in line with changes in the tax code. Child benefit increases became effective three months earlier from June 2001.
From next year the tax year and calendar year will be the same, commencing on 1 January. Social welfare increases and tax changes will apply from the beginning of January.
Recipients of short-term payments such as unemployment and disability benefits will receive their increases from the first pay day in January – 13 weeks earlier than in 2001.
Due to the lead in time involved in the production of certain payments, it will not be possible for budget increases to be paid immediately in all cases from January 2002. Book based payment systems, which are the chosen payment option for the majority of pensioners and other long-term beneficiaries are less flexible than other payment methods and require longer lead in times to implement.
My Department has examined all possible options to ensure that the payment of the new rates is made as quickly as possible and as close as can be to the date on which they are due. In this regard a lump sum payment will be included in the first order in new books for 210,000 customers which will be issued in early February 2002. A further 393,000 people who are due to get new books in April 2002 will receive a special payment in mid-Feburary 2002 containing arrears for six weeks and an advance payment for seven weeks to bring them up to the date on which their new books arrive. Nobody will lose out as a result and everyone will get their arrears by mid-February 2002, six weeks earlier than the budget increases in 2001.
Additional informationThe essential point is that increases will be effective from the beginning of January in all cases, that is, earlier than ever before. Where the increases cannot be paid until mid-February there will be full retrospection to the effective date of the increase. My Department is undertaking a programme of information provision to ensure that all social welfare recipients are made aware of the arrangements which will apply in their case. My officials will outline the details of these arrangements to the Committee on Family, Community and Social Affairs shortly.
