Dáil Éireann debate -
Thursday, 26 Jun 2003

Vol. 569 No. 5

Written Answers. - Social Welfare Payments.

Michael Ring

Question:

58 Mr. Ring asked the Minister for Social and Family Affairs the extent to which she proposes to improve social welfare payments to keep pace with inflation and the need to remove poverty traps; and if she will make a statement on the matter. [18063/03]

Michael Ring

Question:

117 Mr. Ring asked the Minister for Social and Family Affairs the extent to which she proposes to improve social welfare payments to keep pace with inflation and the need to remove poverty traps; and if she will make a statement on the matter. [18128/03]

Minister for Social and Family Affairs (Mary Coughlan)

I propose to take Questions Nos. 58 and 117 together.

One of the key objectives of the 2003 social welfare budget package was to protect and, if possible, enhance the real value of all rates of payment. The budget made provision for increases in the main personal rates of weekly payments ranging from 5.1% to 7.6% as well as similar percentage increases in the weekly rate of qualified adult allowances. These increases were ahead of projected inflation rates.

Social welfare spending rose by over €3.5 billion between 1997 and 2002, providing for increases in social welfare rates significantly ahead of the level of inflation. An additional €833 million in social welfare spending is provided for during this year, and this will bring the projected level of annual spending to over €10 billion for the first time. On an ongoing basis and as part of its programme of expenditure reviews of programme areas, my Department considers the operation of its schemes with a view to ensuring that poverty traps and disincentives to persons taking up employment are minimised. Enormous strides have been made in recent years in making the social welfare system more employment-friendly and in providing support for persons in taking up employment.

At a time of economic uncertainty, the increase in payment rates emphasises the Government's commitment to protecting those at highest risk. My colleagues and I are committed to safeguarding the position of all social welfare recipients and I look forward to making further progress, in the years ahead, on the achievement of our social inclusion commitments.