Séamus Brennan (Dublin South, Fianna Fail)

I am aware of the concerns expressed recently by the Society of St. Vincent de Paul in its pre-budget submission. In view of the particular financial pressures experienced at this time of the year by persons and families in receipt of social welfare payments, I recently announced that a Christmas double payment will be made to more than 1.2 million welfare customers and their dependants. The payment, to be made this month, is a sign of commitment to social welfare recipients. It will be equivalent to 100% of the normal weekly payment and will cost almost €140 million.

My Department has a number of services available to assist individuals and families, primarily those on low income, to manage their finances and to open up affordable credit options. The money advice and budgeting service, MABS, which was originally established in 1992 on a pilot basis as an approach to combating the problem of illegal moneylending, operates nationwide through 52 local companies with the support of funding of €14 million from the Department. The service is designed to target families and individuals identified as having problems with debt and moneylending. Strong emphasis is placed on practical budget-based measures that will succeed in removing people permanently from dependence on moneylenders and open up alternative sources of low cost credit through the credit union movement. MABS management committees are drawn from local voluntary and statutory services and community groups and often include credit union representatives.

I am concerned that where severe hardship exists in cases of over-indebtedness, MABS customers receive the most appropriate assistance to deal with the situation. The 2005 budget allocation included a sum of €700,000 to establish a MABS helpline. Furthermore, one of the MABS companies is operating a pilot scheme together with a local credit union to help those who are borrowing from moneylenders, to access credit at a low interest rate.

Through its operation of the household budget scheme with An Post, the Department assists people who receive certain social welfare payments with money management by enabling them to pay a regular amount towards various household bills by direct deduction from their payments. This scheme is used mainly to cover local authority rents and mortgages and utilities.

Additional information not given on the floor of the House.

There is also provision under the supplementary allowance scheme through its exceptional needs payments, whereby persons may qualify for once-off payments from the Health Service Executive to help prevent undue hardship at times of exceptional expenditure.

Building a fair and inclusive society and helping the most vulnerable have been, and continue to be, key priorities of the Government. The Government's strategic approach to tackling poverty is set out in the national action plan against poverty and social exclusion. The Office for Social Inclusion, OSI, is preparing the third national action plan to cover the period 2006-08. This involves consultation with all relevant stakeholders, those who are experiencing poverty and social exclusion and those who work to support them, either directly or indirectly.

In my area of social welfare, spending has more than doubled, from €5.7 billion in 1997 to €12.25 billion in 2005, providing significant real increases in payments during this period. As a result, in the period 2001 to 2005 the lowest social welfare rates increased by 40% while the consumer price index increased by just over 13%. Child benefit rates increased by 65% over the same period, while from 2002 to 2005 pensioners received increases of €44.71 per week.

In drawing attention to these increases, I am not complacent about the current situation. Much more remains to be done to tackle the problems of poverty and exclusion, including those highlighted by the society. I am determined, therefore, through vigorous implementation and development of the strategic process, in full consultation with all the stakeholders at national, regional and local levels, to continue to build and improve on our achievements so far. I am also examining specific targeted measures that could be implemented to address areas of particular concern, including child poverty and pensioner poverty.

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