Catherine Byrne (Dublin South Central, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this important Bill, introduced by the Minister for Social Protection, Deputy Joan Burton. This Bill gives effect to some of the changes to social welfare which were announced in the budget last month. It is only right that we acknowledge that budget 2016 was a fair budget which saw many positive measures introduced. It was the first opportunity the Government has had to give back to the Irish people after many difficult years following our economic crisis. The Irish people have endured some difficult budgets, but we have now exited the bailout programme and reduced our debts and are seeing a real improvement in public finances.

In the context of this Bill, it is important to note that our social welfare budget is huge - €19.6 billion in 2016. In order to be able to spend this money on important services and supports, we must first take it in through taxation. We are a very small country, although as some would say ours is probably the best country in the world to live in. We have a small population and only a small but growing workforce. Fortunately, as the economy has begun to recover, we see more people return to work and this in turn has contributed to a great financial reserve which can be reinvested into necessary vital services.

I was particularly pleased to see a focus on supporting the elderly in budget 2016. I want to pay tribute to the Society of St. Vincent de Paul and Age Action. They have said they welcome the thrust of the budget in general, but know we are only returning a small element of what the people have lost. I appreciate the welcome they have given. Age Action also welcomed the first increase in the State pension in seven years, although it had reduced by €13 since 2009. We are all aware that has been the case and are aware times have been difficult across the board. However, things are improving and now the budget can give back to people some of the moneys taken from them.

For a number of years now, there have been calls for an increase in the State pension, as it has not increased since 2009. Budget 2016 has increased the weekly pension for pensioners and carers aged 66 years and over by €3. An increase will also be paid for adult dependents. This shows our commitment to our senior citizens and is a recognition of their contribution to society. A 75% Christmas bonus will also be paid during the first week of December, which I know will be of huge benefit for many senior citizens and all welfare recipients. Approximately 1.2 million people will receive the Christmas bonus this year, at a cost of €197 million.

Senior citizens will also benefit from an increase in fuel allowance of €2.50, to €22.50 per week. This payment is a lifeline for many older people and I am glad to see this has been acknowledged in the budget. We are all aware that without the free travel, the TV licence and medical benefits such as medical or GP cards, life would be difficult for many older people. I also welcome the increase in the rate of the respite care grant, now known as the carer's support grant, to €1,700. This will be paid to 86,000 carers at a cost of €30 million in 2016. This payment is very important in supporting our carers, who provide invaluable care and support to family and friends on a daily basis.

Those in receipt of carer's allowance currently continue to receive payments for up to six weeks following the death of their loved one. The Bill proposes to increase this period to 12 weeks, which will again acknowledge the role that many people play on a daily basis as carers.

Budget 2016 is family centred and I know this approach can be built upon in further budgets. The Minister has increased child benefit by €5 to €140 per month. We are the fifth highest out of 17 EU countries in a social payment for children's allowance and I would add that our neighbours are the fifth lowest. The introduction of two weeks of paid parental leave for new fathers, which takes effect from September 2016, has also broadly been welcomed.

While it does not apply to this Bill, I acknowledge the extension of the ECCE scheme, or free preschool year, to children from age three to five and a half, or until they begin primary school. Together with an additional 8,000 community child care places, these measures will support young families, many of whom struggle with child care costs.

The Bill also sees a positive change to the family income supplement, FIS. This payment was introduced in the 1980s as a targeted support for families with children on a low income. It is currently paid to approximately 50,000 families. Budget 2016 provides for an increase of €5 in the earnings threshold for families with one child and €10 for families with two or more children. This measure is aimed at making work pay and ensuring that people can take up offers of employment without being worse off than if they were relying solely on social welfare supports.

The increase in the minimum wage in January 2016 from €8.65 to €9.15 per hour will be an important boost to those on low incomes. The reduction in the universal social charge and exemption of over 700,000 low income workers from it are further steps towards making work pay. Figures this week show unemployment is down to 9.3%, which is good news and shows our strategy and our key policy, the Action Plan for Jobs, of creating 125,000 jobs created since 2012, is working.

On the new Opposition speakers in the Dáil - I mean those who did not make the hard decisions as members of Government and crossed the floor to save their own necks - they are the people who want to lead in the next general election but they cannot even choose a leader among themselves, so God help us all if they are in that position. Regarding Sinn Féin, whose members would class themselves as the people's party and want to be in government after the next election, on a daily basis they say that everything should be free and everything free should be given to the less well off. I want to ask them who the less well off are. They then talk about taxing the rich. Who are the rich they want to tax? Our sons and daughters, who have gone on to third level education and paid dearly for it through saving and through families and who want to become doctors or nurses or just graduate in some other skills, will be the people who will be taking the flights out of this country if Sinn Féin and others are in government the next time around. They will not want to stay because after going to college, the years that they have put will not be recognised and will only be taxed.

I thank the Minister for Social Protection for her dedication to reforming the welfare system and ensuring that those who most need support are helped in every way possible, as shown in the measures included in this Bill. I respect the Minister, Deputy Joan Burton, hugely. She has made huge inroads into changing the social welfare system and will continue to do so when she is re-elected and in the next Government. I thank her and her staff in the Department of Social Protection for putting this Bill together. Above all, I pay tribute to the Irish people, many of whom are my friends, families, neighbours and constituents, who have had cuts to their family incomes but have survived. At long last we in government are now able to give them some benefits back.

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