Vol. 563 No. 6
39 Mr. Crawford asked the Minister for Social and Family Affairs her views on whether the social welfare increases in the last budget are eroded by the level of inflation; and her proposals for compensatory payments in this regard. [8415/03]
One of the key objectives of the 2003 social welfare package was to protect or enhance the value of all rates of payment in real terms. The budget made provision for increases in the main personal rates of weekly payments ranging from 5.1% to 7.6% as well as additional increases, also ranging from 5.1% to 7.6%, in the weekly rate of qualified adult allowances. Given that the budget projected an average annual inflation rate of 4.8% in 2003 the increases in payment rates, provided for in it, ensured that the standard of living of all social welfare recipients will be maintained or improved this year.
As my colleague, the Minister for Finance, indicated at budget time annual inflation rates for the early months of 2003 are expected to be above average and to decline in the later months of the year.
The budget also provided the following: additional increases to those aged 66 or over, in particular those on old age pensions and widows payments; increased or maintained the real value of all qualified adult rates of payment and ensured that they did not fall as a proportion of the associated personal rate; and made significant progress in the Government's programme of increases in the level of child benefit.
Between 1997 and 2002 social welfare spending rose by more than €3.5 billion, a level of increase significantly in excess of the level of inflation. An additional €833 million in social welfare spending was provided for this year. This will bring the projected level of annual spending to over €10 billion for the first time.
At a time of great economic uncertainty this emphasises the Government's commitment to protecting those at highest risk. My colleagues and I are committed to safeguarding the position of all social welfare recipients. I look forward to making further progress, in the years ahead, on the achievement of our social inclusion commitments.
