Áine Brady (Kildare North, Fianna Fail)

I welcome the opportunity to speak on the Social Welfare (Miscellaneous Provisions) Bill 2008. At a time when we are experiencing very challenging economic times, it is timely to reflect on the social welfare entitlements of those that most need the assistance from the State.

The Bill's purpose is to implement the €515 million package of social welfare improvements which were announced in budget 2009. In a very challenging economic climate, this package will bring total expenditure on social welfare in 2009 to €19.6 billion, a substantial increase over the Estimates allocation for 2008. At a time of depleting Government resources, this increased provision for social welfare is a clear and timely signal of the Government's commitment to protect the older people, those losing their jobs and other vulnerable and less well-off in society. Given the financial restrictions, however, the budget has some concrete and helpful proposals to protect the less well-off. It proposes an increase of €7 per week for recipients of pensions and carer payments who are aged 66 years and over. There will be an increase of €6.50 on all working age payments, including jobseeker's benefit, disability allowance, one-parent family payment and carer's benefit and allowance payable to carers aged under 66 years.

The budget also provides for an 11% increase in the value of the fuel allowance for our older people. The fuel allowance will be €20 per week from next January. The duration of the fuel season is also being extended by another two weeks from April 2009, bringing it to 32 weeks in total. As oil prices have significantly reduced in recent months, the increased fuel allowance will be all the more effective. The improvements to the fuel scheme will benefit nearly 300,000 households.

Since 2004, the Government has increased the budget for services for older people by €540 million. In budget 2009, €55 million will be provided to implement the fair deal while protecting the home help and home care services. It is also important to point out that over 50,000 elderly people were taken out of the tax net between 2003 and 2007.

The budget provides an extra €260 million for social welfare payments to people of working age. The maximum personal rate of payment for all working age schemes is being increased by €6.50 per week with effect from the first week of January 2009, with proportionate increases applying to people on reduced rates. This brings the lowest social welfare weekly payments above €200 for the first time to €204.30. The rates of qualified adult payments are also being increased on all schemes by €4.30, except for the invalidity pension scheme where a €4.60 increase will apply. Approximately 733,000 people will benefit from these increases.

Budget 2009 also provides increases for families with children who are in receipt of social welfare payments. Social welfare-dependent parents currently receive an extra €24 per week for each child, on top of their basic social welfare payments through the qualified child increase. This will be increased by €2 to €26 per child with effect from January 2009. Improvements are also being made to the family income supplement which is paid to low-income working families. The income limits for the family income supplement are being increased by €10 per week in respect of each child giving an average extra payment of €6 per child per week. It is estimated that a total of 29,000 families will benefit from the supplement in 2009 and that approximately 2,000 additional families will become eligible for payment. The income thresholds for entitlement to back to school clothing and footwear allowance will also be increased to enable 18,000 more families to benefit from the scheme.

I wish to highlight the work of the Money Advice and Budgeting Service, MABS. Its staff provide a highly valued service to people who are in need of advice on financial issues and are over-indebted. Such people need help and advice in coping with debt problems. There are 53 independent MABS companies with voluntary boards of management, employing 240 nationwide that provide local services. I urge anyone who needs assistance to call to their local MABS office where they will get free advice on their financial situation.

The Bill will provide the legislative basis for a range of improvements next year. These include €7 extra per week for State pensioners; €6.50 extra per week for welfare recipients of working age, such as jobseekers and those on illness benefit; an extra €2 per week on the fuel allowance, with payment also being made for an additional two weeks; increases in child-related payments to those dependent on social welfare; improvements in the family income supplement for low-income working families; and 18,000 more families becoming eligible for the back to school clothing and footwear allowance. I commend the Bill to the house.

See this speech in context