Dáil Éireann Debate, Tuesday - 29 June 2010
62 Deputy Aengus Ó Snodaigh asked the Minister for Social Protection if his attention has been drawn to the fact that prices, as measured by the consumer price index, have risen each month since February 2010 driven principally by housing and energy costs; and his views on whether it is unacceptable to cut social welfare rates and schemes in this context. [27963/10]
Amharc ar fhreagraBudget 2009, announced in October 2008, provided for increases of between 3% and 3.8% in weekly welfare rates of payment. At that time, it was expected that inflation for 2009 would be 2.5%. However, in 2009, prices declined by an average of 4.5%. Budget 2010 provided for reductions in weekly welfare rates of between 3.5% and 4.2% for persons of working age.
I fully appreciate that changes made in the welfare area are not easy for people but believe that if the Government had not taken the steps to reduce overall public expenditure and restore stability to the public finances, we would have run the risk of making the economic and social situation far worse for everyone, including welfare recipients.
While there has been some increases in inflation in recent months, consumer prices are back at March 2007 levels. However, the lowest weekly rate of payment for those aged between 25 and 66 is currently over €10 higher than in 2007.
Social welfare changes for 2011 will be considered later this year in the context of next year's budget preparations, having regard both to needs, including the impact of movements in prices, and to the resources available to meet those needs.
