Éamon Ó Cuív (Galway West, Fianna Fail)

Unfortunately, it will be necessary in this budget to introduce a rate reduction in working age payments from January 2011 in order to produce the necessary savings required in 2011. While there have been some increases in inflation in recent months, consumer prices are back at April 2007 levels and we have managed to maintain the payment rates for all aged 25 to 66 in 2011 at rates higher than those paid in 2007. No reduction is being made to the qualified child rate, which will remain at current levels. In addition, the reduced rate of €100 per week for jobseeker's allowance recipients aged under 21 is also unchanged.

Accordingly, the rates of payment to those aged under 66 are being reduced by €8 per week or an average of 4.1 %. Increases for qualified adults on working age schemes are being reduced proportionately. This will bring the personal rates of jobseekers' payments, one-parent family payment, illness benefit and associated schemes in 2011 to €188 per week or €2.20 per week in excess of the rate which applied in 2007.

The Bill provides for the new lower rates of payment for people of working age. The Bill also provides for a reduction of €10 or 5.1% in the weekly rate of supplementary welfare allowance. The qualified adult allowance for a spouse or partner will reduce by 4.1%, or €5.30 in most cases. The rates of maternity benefit will also decrease by €8 per week.

Even taking into account the reductions that were applied in 2010 and 2011, the Government has delivered unprecedented increases in welfare rates since 2004. Over that period, jobseekers' payments, disability allowance and one-parent family payment have increased by 39.5% while the cost of living has increased by 11.8%. The Government appreciates that reductions in rates will be difficult for people but we also know that if action is not taken now, we risk putting social welfare payments at greater risk in future.

As I said, the weekly rate of supplementary welfare allowance will be reduced by €10 per week or 5.1%. Supplementary welfare allowance is normally paid to persons who are awaiting entitlement to another welfare payment. The rate of payment for the rural social scheme and community employment scheme will be revised in line with the changes in social welfare rates and will become €208 for a single person.

Issues have been raised in regard to blind pension, invalidity pension, disability allowance, widow's-widower's pension and carer's benefit. I have looked at the issue of disability in detail since I came into the Department of Social Protection. I accept there is a need for long-term reform in regard to payments for people with disabilities that is much more tailored to individual situations and levels of disability. I will continue work on this agenda for as long as I am in the Department. To exempt all of these from the rate reduction would have meant exempting approximately a further 260,000 people. The effect of this, in order to achieve the same savings, would have required a cut of €11 per week in jobseeker's personal payments and €18.30 per week for a couple. It must be remembered that people on disability allowance are also entitled to the full households benefits package, free travel pass and a companion pass, where appropriate. These are worth approximately €20 per week.

Disability allowance, blind pension and invalidity pension are paid to over 150,000 people at present. I have huge empathy for people with disabilities who have no capacity to work.

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