Vol. 556 No. 2
3 Mr. Broughan asked the Minister for Social and Family Affairs the measures she intends to take to counteract the effects of inflation and recent price increases on social welfare recipients; and if she will make a statement on the matter. [19607/02]
As the Deputy is aware, the consumer price index is published on a monthly basis by the Central Statistics Office. The latest published CPI report relates to September 2002 and shows that the annual rate of inflation in the previous 12 months was 4.5%. It is projected that the average rate of inflation for 2002 will also be 4.5%.
Budget 2002 made provision for substantial increases in all personal and qualified adult social welfare rates as well as child benefit. The level of increases provided represent real improvements, well ahead of projected inflation for 2002. This was on top of increases provided over the previous four budgets which substantially exceeded the rate of inflation for the period in question.
Among the significant increases in last December's budget were increases in weekly personal rates of payments of between 7.4% and 11.8%. This represents significant real increases, ahead of projected inflation. There were increases in weekly rates of qualified adult allowances of between 12.6% and 14.9%. This also represents significant real increases ahead of projected inflation. Furthermore, these increases were, for the first time, paid from the beginning of January 2002, 13 weeks earlier than in 2001.
Since 1997 the personal rate of payment for most recipients under 66 years has increased by at least 37% and the corresponding rate for a couple by over 44%. The personal rate of old age contributory pension has gone up by nearly 50%, with a couple both over 66 years of age getting 54%. This represents significant real improvement for older citizens.
In relation to payments for children, record increases in child benefit were provided in 2002, continuing the Government's policy of investment in children. These increases, which applied with effect from April last, amounted to an increase of 37.1% for each of the first two children and an increase of 34.9% for the third and subsequent children. This comes on top of increases of 59% and 54% in 2001 and means that there has been a trebling of child benefit rates since 1997.
The increases announced in the last budget, therefore, not only fully protect all recipients from projected inflation in 2002, but also provide substantial real improvements in their standard of living. The question of further increases in payment rates for 2003 will be considered in the context of the forthcoming budget.
I join my colleagues in congratulating the Minister on her portfolio. She is deservedly one of the most popular Members of the House. I wish her well, but hope her administration will not last too long.
Like me, the Minister buys groceries on a regular basis. Is it not a demonstrable fact that we are being ripped off right, left and centre, particularly since the introduction of the euro? Is it not true that the miserable €10 per week the Minister's predecessor gave people on social welfare last January has been wiped out by inflation? The report from which the Minister selectively quoted said that inflation in basic goods and services, including insurance, is 11%, while it is 10% in health costs and charges and 7.5% in food. The Minister's party gave a miserable 9% increase, yet 7% of that was taken back in food costs. St. Vincent de Paul stated recently that 60% of the poorest 20% of the population's income goes on food. Therefore, the massive inflation in goods and services and in food has eroded the miserable social welfare increases given last January. People are reeling from these increases.
It is a disgrace that the Minister has taken over this Department at a time when one in five women pensioners are living in consistent poverty. That is the Minister's responsibility. It is necessary, therefore, for the Minister to go to Cabinet to ask for a mechanism to combat inflation in the forthcoming budget. Workers, through my colleagues in the trade union movement, re-negotiated the PPF. There was nobody to re-negotiate social welfare increases and those on social welfare have been left to deal with the most rampant inflation this country has suffered due to the introduction of the euro in particular. I urge the Minister to do something about it over the coming months.
I am glad the men in this House do a bit of grocery shopping as well.
That is a genderist comment.
Absolutely, and equal to the retorts I will give the Deputy in regard to what he said.
As I indicated, the increases in social welfare benefits and assistance are real increases over and above the inflation figures to which the Deputy referred. The Deputy spoke about the price of food, an important issue for those who must live on low incomes. The latest figures published by the CSO show that food prices increased by 2.6% in the year ended August 2002.
Nobody believes that.
These figures do not support assertions of excessive general levels of price increases in the food sector. However, in the context of resources which have been made available, there has been unprecedented support for families and children in particular. Child benefit has been trebled. That is one of the greatest indicators of the Government's policy to alleviate poverty and support children. I refute the Deputy's suggestions. In the context of the budget, I will address the issues raised.
On 13 August the Minister told us she would be making cutbacks in her Department to satisfy the demands of the Minister for Finance, Deputy McCreevy. Will the Minister meet the target of 30% of the average industrial wage for social welfare income this year?
People obviously do not understand the answer "No". There are no cutbacks or readjustments in my Department's budget this year.
