Christy O'Sullivan (Cork South West, Fianna Fail)

I welcome the opportunity to speak on the Bill, which is of huge importance to the most vulnerable people in our community. It shows that the Government has the best interests of the less well-off at heart.

The Bill provides for an increase of between 3% and 3.8% in basic social welfare payments next year. This represents a total spend of €19.6 billion for 2009 and an increase of €2.6 billion over the 2008 Estimates. Overall, 1.7 million people will benefit from these provisions. This includes 440,000 pensioners, 345,000 ill and disabled people, over 80,000 carers, 30,000 low income families who will be availing of family income supplement and more than 580,000 families who receive child benefit payments.

A country can best be judged by how it looks after its most vulnerable, and this Bill shows our country in a very positive light. In these difficult economic times, it is important that we support those who need it most. At a time when many pensioners and social welfare recipients were not expecting increases, the Minister has provided just such increases. Many of these figures are worth repeating. In the coming year there will be an increase of €7 per week for all State pensioners, contributory and non-contributory, as well carers aged 66 and over. There will be an increase for qualified adults ranging from €4.30 to €6.30 per week for those over 66 years of age. A couple will now have a weekly increase of €13.30 per week. The 11% increase in fuel allowance to €20 a week from the start of 2009 is most welcome. I also welcome that the season has been increased to 32 weeks in total.

The Government is doing all it can to keep unemployment as low as possible but it is prudent in the current economic environment to set aside funding in case it continues to rise. The Bill sees changes to the jobseeker's benefit, illness benefit and health and safety benefit schemes.

Some people, who were previously working part-time, could receive a higher rate of payment from these schemes than what they were earning while at work. This has been recognised as being inappropriate and a disincentive to employment. From January, this situation will be addressed by increasing the earnings thresholds which currently apply to the reduced or graduated rates of payment from €150 to €300 per week. This provides an extra incentive for those seeking employment. Up to 733,000 people are in receipt of working age payments — jobseekers, one-parent families, illness benefit and disability allowance claimants and carers. They will all benefit from increases in weekly personal rates in the coming year.

Unfortunately, in these changed economic times, it has been necessary to take some steps to reduce expenditure. These have been kept to the minimum and applied in a careful manner. There was no easy way to achieve the required savings. Consideration had to be given to a wide range of changes and very difficult decisions had to be made. No Minister took these decisions lightly. The Bill seeks to ensure the most needy in our society are looked after and that they are not left behind or forgotten. I welcome the Bill.

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