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Dáil Éireann díospóireacht -
Wednesday, 27 Nov 1996

Vol. 472 No. 2

Priority Questions. - Social Welfare Benefits Review.

Joe Walsh

Ceist:

17 Mr. J. Walsh asked the Minister for Social Welfare if he will publish the promised review by the ESRI on the minimum adequate rates recommended by the Commission on Social Welfare as announced in the programme, A Government of Renewal; and if he will make a statement on the matter. [22383/96]

It is expected that the research, which was commissioned by the Department and is being undertaken by the Economic and Social Research Institute, ESRI, will be finalised and published by the ESRI before the end of the year.

Also being completed by the ESRI is a report into poverty in the 1990s in Ireland. This study utilises the 1994 Living in Ireland Survey to provide an updated picture of the extent of poverty in Ireland and who is affected. Both reports from part of a substantial programme of research being carried out at the ESRI sponsored by the Department of Social Welfare and the Combat Poverty Agency.

Significant progress has been made in recent budgets in bringing rates of payment up to the minimum identified by the Commission on Social Welfare. Increases in this year's budget brought all social welfare payments to the minimum of 92 per cent of the main rate, after compensating for inflation. The widow's-widower's contributory pension reached the main rate when the budget increases were implemented in June. The bulk of the remaining payments are now at least 95 per cent of the main rate. As the Deputy will be aware, the rate for contributory old age pension stands at 110 per cent.

Together with the national anti-poverty strategy, these ESRI studies and other key reports, such as that of the Expert Working Group on the Integration of Tax and Social Welfare, will contribute to informing public debate on the issue of poverty, while also providing a basis for assessing the adequacy of the current rates of social welfare entitlements and the standard of living of social welfare recipients.

In its programme, A Government of Renewal, published at the end of 1994, the Government stated specifically that it would commission the ESRI to carry out a review. On 22 February this year the Minister indicated that this review would be completed by mid-year. We have now been informed that it will be completed by the end of the year. Is the Minister taking the issue of poverty seriously? We were given an indication of the extent of the problem last night on television and radio by the chairman of the Society of St. Vincent de Paul who said the position was getting worse, not better, in spite of the country's good economic performance.

The programme, A Government of Renewal, states: “We will commission the ESRI to review the minimum adequate income rates recommended by the Commission on Social Welfare with a view to recommending new rates in the light of improvements in social welfare and other changes since the report of the Commission was published and taking into account changes agreed in this Programme for Government”. I expect the ESRI's report will be available before the end of the year and it will be published as soon as possible thereafter.

When was the report commissioned? What are the reasons for the delay in publishing it?

The terms of reference of the ESRI in its review of the minimum adequate income rates recommended by the Commission on Social Welfare refer to a review of the calculations of the minimum adequate income rates, including equivalent scales, using the Commission on Social Welfare methodologies and other appropriate methodologies which may have been developed subsequently taking account of revised macro-economic and other sources, including the ESRI's household income survey, 1994. It was asked to compare these calculations with current social welfare weekly payment rates and Commission on Social Welfare rates updated in line with trends in the CPI and net earnings in the period since the publication of the commission's report. The evaluation should take into account secondary benefits, widely defined, in the context of defining adequacy. It was asked to evaluate the extent to which adoption of the newly calculated rates would improve the effectiveness of social welfare payments in reducing income inequality compared with current rates and CSW rates updated by the CPI. It was asked to carry out an analysis of the likely impact of implementing the newly calculated rates, taking account of secondary benefits, on incentives to work and to discuss the wider context of promoting employment opportunities and economic efficiency. It was asked to consider the appropriate method of updating payment rates in the future. The cost of this research is £42,000. I expect the ESRI's report will be available shortly.

On what date was the report commissioned?

I do not have that information but I will convey it to the Deputy.

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