Dáil Éireann díospóireacht -
Tuesday, 26 Feb 2002

Vol. 549 No. 3

Written Answers. - Social Welfare Payments.

Michael D. Higgins

Ceist:

66 Mr. M. Higgins asked the Minister for Social, Community and Family Affairs his views on the call from the Irish National Organisation of the Unemployed that welfare payments should be linked to 30% of gross average industrial earnings; and if he will make a statement on the matter. [6603/02]

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

Under the Programme for Prosperity and Fairness, a working group was established to examine the issues involved in developing a benchmark for adequacy of adult and child social welfare payments, including the implications of adopting a specific approach to the ongoing uprating or indexation of payments. The group was comprised of representatives of each of the social partners and relevant Government Departments.

While it did not reach consensus on the issue, the majority of the group recommended that it would not be an unreasonable policy objective for the lowest social welfare payments to reach 27% of gross average industrial earnings by 2007. The recommendation added that this would not rule out setting a higher target, 30% of gross average industrial earnings, for example, in the context of a review process.

The text of the majority recommendation also rightly recognises, however, that it is the Government of the day which must ultimately decide on the level of social welfare rates. It also recognises that there are budgetary, economic, incentive and other considerations which have to be balanced when deciding upon the appropriate level of social welfare payments.

I agree that there is considerable merit in raising all payments, as and when this is possible, with the objective of ensuring a reasonable relationship, in due course, between the average living standards in the community and the level of social welfare payments.

In this regard, the report – and its majority recommendation which is similar to the INOU's call – was carefully considered in the context of the recent budget. Increases in the lowest welfare payments in budget 2002 were in line with the majority recommendation of the group.

The future direction of social welfare rates is a matter which is being considered in the light of the report from the social welfare benchmarking and indexation group, the consultations on the review of the National Anti-Poverty Strategy (NAPS), representations from interested groups, and the underlying economic and social context. The Government's views in this regard will be elaborated on in the context of the revised NAPS, when it is formally launched jointly by the Taoiseach and me tomorrow.