Written Answers. - Departmental Expenditure.
Eamon Gilmore
Ceist:
51
Mr. Gilmore
asked the
Minister for Social, Community and Family Affairs
the anticipated savings in unemployment payments if the number on the live register continues to decline in accordance with the pattern since the beginning of 1998; the purpose this money will be applied to; and if he will make a statement on the matter.
[14341/98]
Michael Bell
Ceist:
59
Mr. Bell
asked the
Minister for Social, Community and Family Affairs
the case, if any, he will make to the Department of Finance that the savings made on social welfare payments will remain focused on supports for people living in poverty in view of the continuing fall in the live register; and if he will make a statement on the matter.
[14460/98]
I propose to take Questions Nos. 51 and 59 together.
The question of savings accruing to my Department because of the continuing fall in the numbers on the live register does not arise at this time. The live register projection underlying my Department's Estimates for 1998 is an average of 232,000. This average is based on a seasonal pattern where increases and decreases occur at various times throughout the year. Expenditure estimates for unemployment payments are also based on this pattern. As actual figures to date for numbers on the live register and for unemployment expenditure are in line with this expected pattern and with overall expectations, no savings in expenditure arise at present.
When my Department's Estimates are being prepared, savings that arise as a consequence of lower numbers claiming benefit and as a result of other measures, such as control and anti-fraud activities, are incorporated in this process. In this regard, it should be noted that savings arising from a fall in the numbers of people claiming certain benefits, such as those on the live register, would, in many cases, be counterbalanced by other factors, including increases in the numbers claiming other payments. For instance, the number of people claiming disability allowance and one-parent family payment has been increasing in recent years. In addition, as highlighted in the recent Pensions Board Report on the National Pensions Policy Initiative, the number of old age pensioners is set to increase significantly in the coming decades.
Accordingly, the achievement of savings resulting from lower numbers claiming benefits does not necessarily mean that my Department has extra money to spend. These savings are, in many instances, already incorporated in the annual Estimates and budget process when expenditure proposals are set. However, the achievement of such savings makes it possible for me to provide significant additional support for the less well off in our society without exceeding the Government's expenditure targets. For example, I have been able to provide for substantial social welfare increases in this year's budget, including the special £5 increase for old age pensioners.
I have also been able to make significant inroads in meeting many of the commitments contained in the National Anti-Poverty Strategy in relation to income adequacy. For example: the minimum rates recommended by the Commission on Social Welfare have now been exceeded in the case of over 832,000 recipients — 94 per cent. The remaining 57,000 — 6 per cent — recipients have had their rates increased from 95 per cent to 98 per cent of the minimum CSW rates; the back to work allowance has been further expanded with an increase of 5,000 in the number of places on the scheme, from 22,000 to 27,000. In addition, the back to work allowance scheme has been extended to four years for all self-employed participants and the family income supplement is being put on a net income basis with effect from October.
The cost of this year's social welfare budget package is £125 million in 1998 and £225 million in a full year. This is the largest social welfare budget package in many years — £11 million — 10 per cent higher than the budget presented in 1997 by the previous Government.
In addition, arising from savings which accrued in my Department's Vote, the Government was able, towards the end of 1997, to provide a substantial investment of some £6 million to assist many disadvantaged groups, including people with disabilities and older people. Of this amount, £4.8 million was made available to assist community and voluntary organisations working with people with disabilities and older people to cover a range of equipment necessary to improve their quality of life, including accessible buses, motorised wheelchairs, training equipment, information systems, deaf aids, computers and special beds and hoists. A further £1 million was provided for grants for community and family resource centres.
As regards future savings in my Department's Vote, I will be endeavouring to ensure that these, together with the benefits of economic growth generally, are shared with the more vulnerable sections of our society so that all citizens have the opportunity and incentive to participate fully in the social and economic life of the country.
