Joan Burton (Dublin West, Labour)

We will then be able to increase the disregards for those on job seeker's allowance and bring both into alignment. It is just not affordable in the context of the resources available to the Government.

Section 15 provides for amendments to the Redundancy Payments Act 1967 by way of a reduction from 60% to 15% in the rebates paid to employers from the social insurance fund. This reduction will apply in the case of rebates paid to employers on or after 1 January 2012 in respect of the statutory redundancy lump sum payments made to employees made redundant on or after 1 January 2012.

I have stated I will be introducing a number of amendments on Committee Stage. These include changes to PRSI by extension of the liability for share-based remuneration and the abolition of employer PRSI relief on employee pension contributions. They will also include changes to discontinue, for new claimants, entitlement to receive a weekly social welfare payment where a person is also participating in a community employment scheme.

The transition to a more balanced budget cannot be made without reductions in social welfare spending. It is not possible to stabilise and reduce public spending without there being an impact on the Department's budget. If we do not make these changes now, we risk making the economic situation far worse for everyone, including welfare recipients, in the long term. We have done our best to protect the most vulnerable members of society by maintaining the primary weekly social welfare rates and the main child benefit rates in order that people can have confidence and an assurance about their primary weekly or monthly social welfare income. That is also important in terms of the power of the social welfare spend which accounts for 40% of all Government expenditure in every town and village.

Even after these savings, the Government will spend €20.5 billion on social protection measures in 2012. This sends a strong signal that the Government places a great value on the role of welfare payments in protecting citizens at this extraordinarily difficult time. I am saying this in terms of how the overall budget affects those on low incomes.

Earlier in the year I reinstated the minimum wage specifically for people on low incomes to protect them. This House must have regard to working families, with members going out and working every day while receiving very low incomes. That is why the Government has emphasised the reduction in the universal social charge for families on very low incomes. We must protect people on social welfare but we must also provide for elements within the social welfare budget, particularly areas like community employment, with which I have had a very long involvement.

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