Michael Kennedy (Dublin North, Fianna Fail)

I thank Deputy Michael McGrath for sharing time. I welcome the opportunity to speak on this Bill and to outline the changes to our social welfare system. I was proud last Wednesday to sit on this side of the House as the Minister for Finance, Deputy Cowen, and Minister for Social and Family Affairs, Deputy Cullen, spoke about the contents of the Bill. I applaud the Ministers for their efforts to cater for the vulnerable in society. I am always reassured by the Government's commitment to insulate weaker members of society from the financial difficulties they face.

I have memories of other budgets, under other Governments, where benefits to social welfare recipients were less than generous and often unsatisfactory. Since Fianna Fáil entered Government in 1997, it has introduced significant changes and benefits for those who need them most. Throughout the recent period of unprecedented growth in the economy, social welfare payments and the associated thresholds and entitlements have increased on an annual basis. I cannot claim that this will always be the case. We live in a global economy and that will dictate our future growth. In the current economic circumstances, the substantial rate of increase of recent years had to slow down. That has been recognised in the budget.

Nevertheless, the allocation of €17 billion to the social welfare system illustrates the Government's commitment to protecting the underprivileged, poor and vulnerable in our society. This amount represents almost half of the Government's total spend and includes an increase of €980 million over the allocation for this year. That is very significant in any language.

Despite the economic slowdown, the Government remains strong on social welfare issues. As the Minister stated in his speech yesterday, the Government is faced with the challenge of providing adequate resources to address social welfare needs while protecting the economy. While taking that into account, this Bill puts a clear emphasis on protecting the living standards of those most in need. The increases provided in the Bill are well above the estimated inflation rate of 4.9% and these are especially important in maintaining the living standards of disadvantaged people.

The Bill focuses much of the €17 billion allocated on protecting the elderly and citizens on the periphery of the social welfare system, such as those relying on the entitlements of a spouse or partner. The 2,500 job seekers in my constituency will more than welcome the €12 per week increase, as will those 156 recipients of the one-parent family benefit in the Dublin North region. We have some 529 recipients of family income support, who will receive a €25 increase, which will be very welcome.

I strongly support all aspects of the Social Welfare Bill and welcome the €14 increase in the contributory State pension, as well as increases in the contributory widow's and widower's pension, the deserted wife's benefits and invalidity pensions. Bringing the amount to €223.30 per week is very significant and in line with the Government's commitment of reaching a target of €300 per week in its lifetime. There was a €12 increase in the non-contributory State pension, bringing it to €212 per week. I have had many calls to my office in recent days by people welcoming that.

The qualified adult allowance for spouses and partners of those depending on social welfare payments means couples in this category will have a combined increase of €41 per week, which is just and welcome. The income support payments will increase by €8 for those dependent on adults in receipt of job seeker's benefit. The Government has increased the payment for family income supports and enabled more families to claim the payment. I welcome that the widowed parent grant has increased to €6,000.

I cannot go on without mentioning the fuel allowance period, which will be increased to 30 weeks from next April. This is important and I hope in future years the Minister will be in a position, taking financial constraints into consideration, to increase that period. Quite often our weather seems warmer in spring and is colder in the summer. We should look to increase the fuel allowance period as a result.

I welcome the Government's commitment to carers and I have no doubt that we recognise the important role carers play in our society. Since 1997 there has been a sharp increase in the payment to carers and this year the increase was €14, bringing it to €200. That is justified but we should continue to improve on it.

The Government has a stated commitment to establish a national carers strategy, which was provided in Towards 2016, to ensure there is no monetary barrier to a person leaving a job to care for a loved one. I welcome this and exhort the Minister to bring this about as soon as possible.

I would like to see further increases in payments to qualifying adults, which would substantially ease the burden of stay-at-home mothers, spouses and partners who do not work and those who cannot work. We must ensure the higher benefits do not adversely affect other payments, grants or supplements paid to a social welfare recipient. I have indicated to the Minister that the last thing we want is to see an increase in payments tipping the balance on a young mother, for example, on rent supplement and putting her out of the scope of benefits. We must ensure any benefits we give are real in that context.

The Government has not walked blindly into this but has identified several strategic objectives it hopes to achieve. The 2008 budget and the Social Welfare Bill will go a long way to achieving these aims. It is placing €17 billion into achieving these strategic objectives. We must see a continuation of the Government's target on pensions and a significant improvement in the position of spouses and partners, those receiving contributory pensions, and those receiving a qualified allowance.

We must be allowed to strengthen the support to carers, as this Bill provides for, to ensure people continue with this valuable and compassionate work. I cannot over-emphasise the role carers play, a fact recognised on all sides of the House. Most importantly, we must ensure the real value of payments is maintained and safeguarded, with no payment having a negative effect on any other benefit given by other authorities or bodies.

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