Martin Cullen (Waterford, Fianna Fail)

The appropriateness of benchmarking social welfare rates has been actively considered for some time. In 2001, the Social Welfare Benchmarking and Indexation Group was established to examine the issues involved in developing a benchmark for the adequacy of adult and child social welfare payments. The group published its final report in September 2001 but did not achieve a consensus position on the desirability of establishing a formal benchmark. However, I would not accept that we are not using clear public indicators. The illustrated benchmark options examined in the report included 30% of the gross average industrial earnings and 50% of average weekly household income. The group could not agree which would be the better option, as there were advantages and disadvantages associated with each.

The report provides a valuable resource for the assessment of implications of adopting particular approaches to the uprating of social welfare payments and was considered by the Government as part of the review of the national anti-poverty strategy, NAPS, in 2002. Recognising that the exact rate was a matter for the Government, the strategy set a target of €150 per week in 2002 terms for the lowest social welfare payments to be met by 2007. This target was achieved in budget 2007.

The current social partnership agreement, Towards 2016, commits the Government and the social partners to working together to achieve the NAPS target and to maintain the value of the lowest social welfare rates at this level during the course of the agreement subject to available resources. The programme for Government reiterates this commitment, but based it on maintaining the value of the rate achieved in 2007 of €185.80. In budget 2008, the lowest rates of payment increased by 6.5% to €197.80 per week, more than twice the projected rate of inflation for 2008, not only maintaining the value of the payment in line with Government commitment, but enhancing it.

Since 2004, the lowest social welfare rates have risen by 58% compared to the period's cumulative price index increase of 15%. In 2004, the lowest social welfare rate payment equated to 24% of the gross average industrial earnings. As Deputy Morgan knows, that figure stands at 30% now. Therefore, I cannot accept his amendment.

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