Dáil Éireann díospóireacht -
Tuesday, 9 Dec 1997

Vol. 484 No. 3

Written Answers. - Social Welfare Benefits.

Joe Higgins

Ceist:

271 Mr. Higgins (Dublin West) asked the Minister for Social, Community and Family Affairs the cost, if any, there would be if all unemployment payments were increased by 4 per cent from 5 April 1998, if all unemployment payments were increased by 4 per cent from the same date as they were increased in 1997, if all pensions were increased by 4 per cent from 5 April 1998, if all pensions were increased by 4 per cent from the same date as they were increased in 1997 and the cost of increasing child benefit by 4 per cent. [21842/97]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The cost in 1998 of increasing all weekly unemployment and pension payments by 4 per cent from 5 April, in which case payments would be issued for 39 weeks, or from the middle of June, in which case payments would be issued for 29 weeks, as they were in 1997, are listed below. These costs provide for increases in personal and qualified adult rates only; they do not include increases for child dependants.

Unemployment Costs	Cost in 1988
April	June	Difference
	£m	£m	£m
Unemployment Benefit	6.98	5.19	1.79
Unemployment Assistance	19.16	14.25	4.91
Total	26.14	19.44	6.70

Pension Costs	Cost in 1988
April	June	Difference
	£m	£m	£m
Old Age (Con) Pension	9.05	6.73	2.32
Retirement Pension	10.80	8.03	2.77
Invalidity Pension	5.72	4.26	1.46
Widow/er's (Con) Pension	10.60	7.88	2.72
Deserted Wife's Benefit	1.52	1.13	0.39
Orphan's (Con) Pension	0.05	0.04	0.01
Death Benefit Pension	0.07	0.05	0.02
Disablement Pension	1.43	1.07	0.36
Old Age (Non-Con)Pension	10.70	7.96	2.74
Widow/er's (Non-Con) Pension	2.03	1.51	0.52
Blind Person's Pension	0.26	0.20	0.06
Orphan's (Non-Con) Pension	0.03	0.02	0.01
Total	52.26	38.88	13.38

The above figures show that it would cost in the region of £20 million to bring forward budgetary increases in unemployment and pension payments from June to April. Additional costs would arise if the same changes were extended to all social welfare payments.

Last week's budget, provided for the effective date for paying increases in all social welfare payments to be brought forward to the first week in June. As such, recipients will benefit from the increased rate of payment for 31 weeks in 1998 as opposed to 29 weeks in 1997. The increases in the budget were between 4.4 per cent and 4.6 per cent in the case of unemployment payments, and as high as 7.4 per cent in the case of some pensions.

The full year cost of a 4 per cent increase in child benefit is £16.49 million. Child benefit increases are effective from September. The cost in 1998 of a 4 per cent increase is £5.5 million. In the budget, increases of £1.50 and £3 in child benefit were awarded; these represented increases of 5 per cent and 7.7 per cent of the lower and higher rates of child benefit.