Budget 2004 provided for increases in the weekly personal rates of social welfare payments, which were well ahead of inflation, as follows: a €11.50 increase in the maximum personal rate of widow/er's contributory pension and deserted wife's benefit for those aged 66 years and over, this represents an increase of 7.4% and a real increase, which is well ahead of inflation; and a €10 increase in the maximum personal rate of all other weekly payments, including all other widow/er's pensions and all old age pensions. These changes represent increases ranging from 6.4% to 10.3% and real increases which are well ahead of inflation.
Budget 2004 also provided for: increases in the weekly rate of qualified adult allowances ranging from 6.3% to 11.4%, again representing substantial real increases; child benefit increases of €6 per month for the first two children and €8 for the third and subsequent child; an increase of €200, from €2,500 to €2,700, in the widowed parent grant; a €100 increase in the respite care grant, and a significant increase in the weekly income disregard for carer's allowance.
Over the period 1997 to 2004 social welfare spending has nearly doubled, from €5.7 billion to a projected €11.3 billion in 2004.
In this period, rates were increased far in excess of the cost of living. For example, the rate of old age pension has increased by 80%, representing a real increase of over 40%; the old age contributory pension has increased by 69%, representing a real increase of 32%; the widow/er's contributory pension aged 66 years and over has increased by 85.3%, representing a real increase of 45%.
The levels of increases provided in budget 2004, in conjunction with the levels of increases provided over the period from 1998, demonstrate the Government's continuing commitment to safeguard and enhance the living standards of the most vulnerable in our society.