John Carty (Mayo, Fianna Fail)

I congratulate the Minister for Social and Family Affairs on introducing the most comprehensive social welfare package in the State's history. These social welfare improvements will benefit the most vulnerable groups in our society. More than 1.5 million men, women and children will benefit as overall spending increases by more than 10% to €13.5 billion, double the spend in 2000. The increases in rates for allowances and supports include a €17 per week rise for those in receipt of lower welfare rates, a special €16 a week increase for non-contributory pensioners and a €14 rise in the weekly income for other pensioners. This is a positive move in looking after the elderly in society.

More than €100 million has been allocated in increases to raise child benefit payment rates to €150 at the low level and €185 at the top level. This entitlement is paid to in excess of 540,000 families in respect of more than 1 million children. Together with the new €1,000 child care initiative, the Government has now fully honoured its commitment on child benefit. These increases represent a significant contribution towards alleviating child poverty and providing extra support for children.

In response to increasing fuel costs and their impact on the ability of welfare recipients in meeting their heating bills, the fuel allowance will be increased by €5 per week to €14 with effect from the beginning of January. This increase will directly benefit 274,000 households and is badly needed, especially by older people living alone during the winter weather. I ask the Minister for Finance to consider extending in future budgets the period during which the allowance is paid.

A new social reform agenda with funding of more than €300 million is being made available to underpin and give tangible effect to some important and necessary social reforms. One of the main objectives of the reforms is to create the changes and opportunities which will bring people from welfare dependency to financial independence, thereby providing a better standard of living and income. Changes in the means disregard and the increase to €100 per week in the earnings disregard will raise 35,000 pensioners on part payment to the full amount and encourage older people to take up employment without fear of losing the pension.

Carers and their valuable contribution to society are recognised by an increase of €30 per week in the carer's allowance, bringing the top rate to €200 and making it one of the largest single welfare payments in the State. In addition, the respite care grant, which is available to all those providing full-time care irrespective of means, has been increased by €200 to €1,200.

A €150 million package has been provided to tackle child poverty. The threshold for family income supplement, which provides cash support for workers with families on low earnings, has been significantly increased by amounts ranging from €19 to €282 per week and is specifically targeted at larger families where poverty is more likely to be concentrated. Back to school clothing and footwear allowance, which benefits approximately 160,000 children, has been increased, while the school meals scheme also benefited from the budget.

The upper earnings income for one parent family payment has been substantially increased by €82 per week to a new limit of €375. Of the 80,000 lone parents in receipt of the payment, it is estimated that 60% are currently in full or part-time employment. The increased income limit will allow several thousand lone parents become eligible for a payment and all those recipients who are working will be in a position to increase their earnings further.

Almost €28 million extra is being invested in a range of new and enhanced support schemes which will provide opportunities and choices to welfare recipients, especially the unemployed. The qualifying period for access to the back to work allowance for employees has been reduced from five years on the live register to two years and, in the case of the self-employed, from three years to two years.

I congratulate the Minister and staff in his Department for all their work in formulating a package of measures which confirms our commitment to social inclusion by helping in a real way those who are less well off, while at the same time maintaining a strong economy. This social welfare package has all the hallmarks of a caring Government concerned with the needs of the most vulnerable in society and one which is honouring its commitments to the people.

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