Vol. 567 No. 1
117 Mr. P. McGrath asked the Minister for Social and Family Affairs the measures she intends to put in place to counter the effects of price rises which social welfare recipients have faced since the last budget; and if she will make a statement on the matter. [13516/03]
One of the key objectives of the 2003 social welfare package was to protect or enhance the value of all rates of payment in relative terms. The budget made provision for increases in the main personal rates of weekly payments and in the weekly rate of qualified adult allowances ranging from 5.1% to 7.6%. The budget day projection was that prices will increase by an average of 4.8% in 2003 as a whole. I understand from my colleague, the Minister for Finance, that his Department will publish a revised estimate of inflation over the summer. In this regard, I welcome the recent fall in the annual rate of inflation to 4.3% in April of this year.
In addition, budget 2003 also provided for additional increases to those aged 66 or over, in particular those on widows and old age pensions; 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 our programme of increases in the level of child benefit.
Social welfare spending rose by over €3.5 billion between 1997 and 2002, a level of increase significantly in excess of the level of inflation. An additional €833 million in social welfare spending is provided for during this year, and this will bring the projected level of annual spending to over €10 billion. At a time of economic uncertainty, the increase in payment rates 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 and I look forward to making further progress, in the years ahead, on the achievement of our social inclusion commitments.
