Vol. 396 No. 2
12 Mr. Moynihan asked the Minister for Social Welfare the proportion of gross national product represented by his Department's nett allocation for each of the years from 1980 to 1989 inclusive; and if he will make a statement on the matter.
The information requested is given in a tabular statement which I will make available to the Deputy. In 1980, social welfare Vote expenditure was 5.4 per cent of GNP and 7.5 per cent in 1989. This expenditure broadly represents the Exchequer's contribution to total social welfare expenditure, which amounted to over 57 per cent of expenditure in 1989.
Measuring the adequacy of social welfare expenditure in terms of percentages of GNP can be misleading. The percentage may, for example, decline due to a fall in the numbers of unemployed which would be reflected in a fall in expenditure on unemployment payments. Changes in the financing of social welfare expenditure are also relevant in this context. A significant change in the structure of social security financing occurred in 1988 following the extension of social insurance to the self-employed in April 1988, which resulted in a reduction in the Exchequer contribution to overall expenditure offset by the additional income from contributions by the self-employed.
Gross expenditure has increased in money terms each year, reflecting the significant improvements that have been made in social welfare payments, particularly in the last three budgets. Over the period of these budgets long-term unemployment payments will have increased in real terms by over 37 per cent, and short-term unemployment assistance and supplementary welfare allowance, which are the lowest rates of payment, by 32 per cent. The real value of other payments have been maintained or increased. These improvements more than meet the commitments given by the Government in the context of the Programme for National Recovery.
Following is the statement:
Social Welfare Expenditure as Percentage of GNP.
|
Year |
Gross Expenditure |
Net Vote Expenditure |
|||
|
£m |
% of GNP |
£m |
% of GNP |
GNP £m |
|
|
1980 |
899 |
10.0 |
488 |
5.4 |
9,003 |
|
1981 |
1,192 |
11.0 |
683 |
6.3 |
10,854 |
|
1982 |
1,630 |
13.1 |
933 |
7.5 |
12,454 |
|
1983 |
1,900 |
14.0 |
1,093 |
8.0 |
13,595 |
|
1984 |
2,093 |
14.2 |
1,210 |
8.2 |
14,791 |
|
1985 |
2,298 |
14.6 |
1,360 |
8.7 |
15,698 |
|
1986 |
2,480 |
14.8 |
1,544 |
9.2 |
16,728 |
|
1987 |
2,593 |
14.4 |
1,599 |
8.9 |
18,032 |
|
1988 |
2,614 |
13.9 |
1,536 |
8.2 |
18,784 |
|
1989* |
2,666 |
13.1 |
1,513 |
7.5 |
20,275 |
*provisional
