Vol. 488 No. 1
51 Mr. Allen asked the Minister for Finance if he will make a statement on recent Central Statistics Office figures which show that, in the consumer price index published in December 1997, food prices experienced the highest growth; and his views on the impact, if any, that this will have on low income families. [5401/98]
The most recent CSO data on prices, for January issued in February, shows that for the year ending January 1998, overall prices went up by 1.8 per cent, while the food price element increased by 2.4 per cent — other categories included clothing and footwear which fell by 9.6 per cent.
Deputies will be aware the Government is committed to improving the position of people on low incomes. My recent budget included increases in short-term social welfare rates for those under 66 years of about 4.5 per cent, while those over 66 years of age received increases of between 6.5 and 7.5 per cent. Under my budget, there will be an increase in the personal tax allowance of £250-£500, and a reduction in the standard rate of income tax by 2 per cent to 24 per cent. Weekly employee PRSI allowances are to be increased from £80 to £100 for full PRSI contributions.
I also announced measures which were specifically aimed at those on lower incomes and the unemployed. These include the introduction of a £3,000 tax allowance in respect of long-term unemployed persons entering the labour market. The number of places under the back-to-work allowance scheme is to increase by 5,000, from 22,000 to 27,000. The changes in the operation of the family income supplement which I announced will significantly increase the numbers eligible for a weekly payment, while the average payment will also increase from £39 to £50.
These measures, along with positive action on social inclusion and investment in education and training, will help to improve the position of those on low incomes. It also demonstrates the Government's commitment to ensuring all sections of our society benefit from the fruits of our current economic growth.
