Dáil Éireann Debate, Tuesday - 21 October 2014
182. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which she expects to be in a position to address various social issues in the context of budget 2015; and if she will make a statement on the matter. [40367/14]
Amharc ar fhreagraI announced, on Budget Day, a number of welfare initiatives costing €198 million. These measures have four key objectives, as follows:
- Assisting unemployed families to return to work by providing continued financial support;
- Helping all families in the State with the cost of raising children;
- Recognising the additional pressures on pensioners and people with disabilities who are living alone, and
- Helping vulnerable welfare households to meet the costs associated with water services.
The measures included the introduction of a new Back to Work Family Dividend. Through this scheme, long-term unemployed jobseekers with children who leave welfare to return to work can retain the child-related portion of their social welfare payment on a tapered basis over two years. This includes those who move to self-employment, such as the construction sector. It will also apply to One Parent Family Payment recipients who similarly go back into the workforce.
The scheme will be worth €1,550 per child in the first year of employment or self-employment and half that amount again in the second year. The Dividend will help increase the pace of the progress we are making in helping people back to work. It will help boost the recovery, reduce welfare expenditure in the long-run, and, most importantly, help the families in question to build a better financial future for themselves.
In addition, I also doubled the number of JobsPlus places, from 3,000 to 6,000, to incentivise employers to hire long-term unemployed from the Live Register.
Turning to supports for families generally, I also provided for an increase in the Child Benefit rate of €5, bringing the monthly rate from €130 to €135 per child. This recognises the sacrifices that families made during the economic crisis and the fact that families are continuing to face difficulties. In the Statement of Priorities published earlier this year, the Government promised a new deal on living standards for hard-pressed families, and this increase is in line with that commitment. I have also provided an additional €2 million for the School Meals scheme in 2015.
Looking now at pensioners and people with disabilities, there will be an increase in the Living Alone Allowance of €1.30 per week, bringing the rate up from €7.70 to €9. The Living Alone Allowance is a payment made to pensioners and people with disabilities who live alone, and was last increased in 1996.
In line with the Statement of Priorities, I am introducing a Water Support payment of €100 to recipients of the Household Benefit Package, to help older people and other vulnerable groups meet the cost of water services. In addition, I am introducing a payment of €100 per annum to Fuel Allowance recipients who are not in receipt of the Household Benefits Package. This measure will also work to alleviate the impact of water costs.
As you know, the Christmas Bonus was abolished by the previous Government in 2009 . I am pleased to say that I am in a position to partially restore the Bonus this year. A bonus of 25% will be paid in early December to all long-term welfare recipients including pensioners, lone parents, jobseekers, carers and people with disabilities. This will cost over €63 million and is in recognition of the position of vulnerable households.
In conclusion, this Budget will:
- help more people return to work, particularly families with children;
- support all families with children as well as pensioners and people with disabilities living alone, and
- assist low-income families on welfare to meet the costs associated with water services.
Throughout the crisis, this Government protected core welfare rates and maintained a massively strong social welfare safety net. This is acknowledged by the ESRI, among others, which has pointed out that, unlike in other countries, income inequality has fallen in Ireland in recent years, largely because of the overall maintenance of the welfare system.
But we did not just maintain the system throughout the crisis; we transformed it in order to help people back to work. And in so doing, we have created the room to announce enhanced support for those who need it most, while continuing our unrelenting focus on reducing unemployment.
Question No. 183 answered with Question No. 170.
