Dáil Éireann díospóireacht -
Thursday, 24 Oct 2002

Vol. 556 No. 2

Written Answers. - Household Budget Survey.

Trevor Sargent

Ceist:

15 Mr. Sargent asked the Minister for Social and Family Affairs the Government's views on the Household Budget Survey released in October 2002 by the Central Statistics Office; and if she will make a statement on the matter. [18126/02]

Brendan Howlin

Ceist:

23 Mr. Howlin asked the Minister for Social and Family Affairs her views on the claim by the Conference of Religious in Ireland that the gap between rich and poor widened by ?243 a week during the first five years of the Government; and if she will make a statement on the matter. [19506/02]

Kathleen Lynch

Ceist:

33 Ms Lynch asked the Minister for Social and Family Affairs the steps she intends to take on foot of the recent CSO Household Budget Survey which highlights the widening gap between high and low income households; and if she will make a statement on the matter. [19499/02]

Minister for Social and Family Affairs (Mary Coughlan)

I propose to take Questions Nos. 15, 23 and 33 together.

The latest Household Budget Survey, published in October, presents results from the survey carried out between June 1999 and July 2000. This representative survey of Irish private households is the first such survey since 1994-95.

The survey shows the changes in disposable income of households at different income levels over this period. While the change in income varied across different income levels, that rent incomes have increased significantly at all income levels over the period.

What these figures do not show is the sharp decrease we have seen in consistent poverty over recent years. Consistent poverty – a combined measure using income thresholds and the experience of deprivation – is used for the global target in the national anti-poverty strategy which has been reviewed in consultation with the social partners. Consistent poverty has fallen from 15.1% in 1994 to 6% in 2000, the latest figures available. The Government is committed to reducing consistent poverty to below 2%, and ideally eliminating it by 2007. In addition, progress in relation to the proportion of the population falling below relative income lines, particularly for a sustained period, will be monitored over the lifetime of the strategy.

The Conference of Religious in Ireland's pre-budget submission claims that the gap between rich and poor has widened by €243 per week over the past five years. This is based on a calculation of social welfare increases for a long-term unemployed person compared with the changes for a person on €50,790 per annum arising for tax reductions, wage increases, and the take-up of an account under the Government's special savings incentive scheme.

These figures do not take into account that the number of long-term unemployed people has fallen dramatically over the past five years, alongside a corresponding decrease in unemployment and increase in employment. Since April 1997, long-term unemployment has decreased from more than 90,000 people to around 20,000, or from 5.6% to 1.2%. In addition, unemployment overall has fallen from 10.3% to 4.2%. Approximately 370,000 more people are in employment now than were employed in 1997. For those that remain on social welfare, the rate of increase for social welfare payments has far exceeded the rate of inflation over the past five years, providing significant real increases in disposable income for vulnerable groups in society.

In addition, the Government is committed to implementing the revised national anti-poverty strategy with specific targets across thematic areas related to poverty and its focus on particularly vulnerable groups.

Most notably, the target on income adequacy is to achieve a rate of €150 per week, in 2002 terms, for the lowest rates of social welfare by 2007, a target welcomed by the social partners.

The Government is committed to combating social exclusion, ending marginalisation and creating a fairer society. Successive budgets have represented major steps towards these goals and this has been underlined in the progress made on reducing consistent poverty and unemployment. The most vulnerable in society, that is children, older people and those dependent on social welfare, have all benefited greatly from the improvements made.