Mary Hanafin (Dún Laoghaire, Fianna Fail)

The appropriateness of benchmarking social welfare rates has been actively considered from time to time.

In 2001, the social welfare benchmarking and indexation group was established to examine the issues involved in developing a benchmark for 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. The illustrative benchmark options examined in the report included 30% of gross average industrial earnings and 50% of average weekly household income. The group could not agree about which of these would be the better option as there were advantages and disadvantages associated with each.

The report provides a valuable resource for the assessment of the implications of adopting particular approaches to the up rating of social welfare payments and was considered by Government as part of the review of the national anti-poverty strategy in 2002. Recognising that the exact rate was a matter for 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 2007. The National Action Plan for Social Inclusion 2007-2016 includes a commitment to maintain the relative value of the lowest social welfare rate at least at €185.80, in 2007 terms, over the course of the plan, subject to available resources. This commitment is reiterated in the agreed programme for Government.

The value of the lowest rate of welfare payment was fully maintained in budget 2008 and stands at €197.80 per week following an increase of €12 per week or over 6%. In the last six budgets, the value of the lowest rate of payment has increased by a cumulative €79 per week or 67%. By any standards, the levels of increases in welfare payments generally over the period since 2002 have been exceptional and are a demonstration of our continuing commitment to all those who are less well off.

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