Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

Deputy Brendan Ryan asked me about costs. For pension measures and the qualified adult rate of payment, there is a cost of €93 million to 2016. The overall package is worth approximately €250 million, which is substantial considering where all of the experts said we would be in budgetary matters at this stage. They said we would still be taking money out of the economy and making further corrections. We have certainly come a long way in the past three years. If one considers the budgets announced last year and this year together, one realises we were able to increase the living alone allowance. It is the first time it has been raised since the 1990s. Last year we were able to take the first step towards bringing back the Christmas bonus. It was restored at a rate of 25%. At the time, the Government indicated that it was hoped to restore it at a rate of 50% in the 2016 budget, but we were able to restore it at the rate of 75%.

Deputy Joan Collins referred to the fuel allowance. There is a 12.5% increase on the previous rate. Its purpose is to get people through the worst weather, or bad weather events. In the past when there was exceptionally bad weather, the allowance was extended. I hope we will have no exceptionally bad weather this winter. The 12.5% increase is significant considering that nobody envisaged in any of the budgetary submissions we received that the Government would be able to increase not only the fuel allowance but also carer's allowance and the Christmas bonus.

I accept Deputy Aengus Ó Snodaigh’s figures for inflation, but there is a 1% increase on the 2015 rate. Generally, it is slightly ahead of the projected annual inflation rate of 1% in 2016. I accept that nobody will be dancing at the crossroads over the increases, but people have recognised that since the last budget recovery has started slightly and that we have been able to put something back. It marks the end of the period of cuts which is generally welcomed by the public at large. It is an indication that there is hope and that this and future Governments will be in a position to reinstate some of the payments that were cut. I hope that in future years we will be able to increase the State pension to reflect the economic recovery. My party is committed to increasing it as long as the economy continues to recover in the current manner.