Joan Burton (Dublin West, Labour)

The Revised Estimates volume, published by the previous Government in February, provides for total expenditure on social welfare schemes and services of €20.615 billion in 2011. This sum incorporates the effect of a range of savings measures announced in budget 2011.

The estimate for jobseekers' payments contained in the Revised Estimates volume was based on a weekly average live register of 405,000 in 2011. If current trends continue, the live register will outturn at an average higher than provided for in the Estimate. If this turns out to be the case, additional expenditure over and above that provided will be incurred. The weekly average live register in the year to date has been 441,482. The jobs initiative announced today will play an important role in getting people back to work or into education, training and internship and off the live register, so it is too early to quantify any overspend.

The social welfare package in budget 2011 was designed to achieve total savings of €873 million. The measures included reductions in weekly rates of payment for all working age recipients and in monthly child benefit. Savings were also to be achieved through the continuation of spending restrictions under the treatment benefits scheme, administrative savings and a range of activation measures. Budget 2011 also provided for €30 million in savings through achieving efficiencies in the electricity and telecoms elements of the household benefits package. My officials are currently in discussions with the relevant providers with a view to achieving these savings. Savings of €60 million in the rent supplement scheme were also included in the budget figures. However, no specific measures were decided upon to achieve €50 million, or in that region, of this saving.

In addition, it was announced that approximately €49 million would be saved through various other measures. No measures were publicly announced. However, this €49 million was allocated across a range of schemes, with specific amounts deducted on a scheme by scheme basis, in both the Estimates published on budget day and the subsequent Revised Estimates volume, both of which were approved by the previous Government. It is my understanding from my officials that the then Minister intended to bring forward a range of measures to achieve these savings in the context of an early social welfare Bill. However, events overtook this.

My colleagues and I are currently considering the issues and options arising in the context of the financial targets set in budget 2011.

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