Séamus Brennan (Dublin South, Fianna Fail)

Following the social welfare increases awarded in last year's budget, the lowest rate of social welfare payment currently stands at €148.80 per week. Depending on their circumstances, social welfare recipients are also entitled to additions to the personal rate of payment in respect of a spouse or partner and dependent children. In the case of a two-adult household with three children, the weekly social welfare payment including child benefit is in the order of €413.

Government policy with regard to social welfare rates is guided by the commitment in the revised national anti-poverty strategy, NAPS, to increase the lowest social welfare personal rates to €150 per week in 2002 terms by 2007 and to set the appropriate equivalence level of child income support, combining child benefit and child dependant allowances, at 33% to 35% of the adult rates. We remain on target to achieve this objective. In budget 2005, the lowest rates of social welfare were increased by €14 per week while the rates of child benefit were increased by €10 to €141.60 per month for the first two children and by €12 to €177.30 per month for the third and subsequent children. The equivalence level of child income support now stands at 33.3% of the lowest social welfare rate for those receiving the lower rate of child benefit and 38.8% for those on the higher rate.

The details supplied with the question claim that an income level of €528.49 per week is necessary for a family of two adults and three children to avoid being in consistent poverty. This is not quite correct. The figure has been calculated by the CORI justice commission and refers to the 60% median poverty line for a family of two adults and three children. This is the so-called at risk of poverty indicator, which is one of a range of measures used by the EU to measure poverty and social exclusion. The relative income measure is essentially about inequality of incomes and identifies those with an income below 60% of the median income for society as a whole and who as a result may be at risk of poverty. The poverty measure that underpins the revised NAPS is the consistent poverty measure which identifies those who are at risk of poverty and deprived of certain items considered by Irish people as necessary to ensure a basic standard of living.

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