Mary Butler (Waterford, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak on the Social Welfare Bill. In its initial analysis of the budget, the ESRI has said the greatest gains in budget 2017 are in the lowest income brackets. While the gain is minimal, it is doubtful that this would have happened without the influence of Fianna Fáil. While a great deal more needs to be done to bring about an Ireland for all, the social welfare package in budget 2017 represents a step in the right direction towards creating a more equal and progressive Ireland in which all citizens have a stake, not just the privileged few. While Fianna Fáil is not in government, it has agreed to a confidence and supply arrangement to facilitate a Fine Gael-led minority Government. We did not sit on the fence like some others whose main aim seems to be to highlight problems without offering any credible solution. We chose to be responsible and to show leadership. To a degree, this facilitation has enabled us to push our agenda based on the principles of fairness, equality and progressiveness and to ensure that for the first time in years the budget is not weighed in favour of those who are least in need. While we did not secure everything we wanted in the budget, we have made some vital gains and put a halt to the regressive policies previously pursued in the last five years.

Despite the small gains in budget 2017, however, we are acutely aware that it will not solve the many problems that persist. Rates of poverty and deprivation are appalling. There are 134,000 children in consistent poverty and children represent approximately 40% of the entire consistent poverty population. Of lone parent households, 59% experience deprivation and 51% of those not at work due to illness or disability are experiencing deprivation. It is clear that one budget alone will not solve this, but the time has now come for fairness. The budget must work within the fiscal parameters available. As such, a sensible approach was needed and that is what was taken. This is not a game we are playing and acting responsibly is not a game. However, the budget is only the first step in creating a society where everyone, not just the privileged few has a place. There is work still to be done, which all sides of the House acknowledge.

As Fianna Fáil spokesperson for older people, I welcome the €5 increase for pensioners aged 66 and over and the increase to all weekly welfare rates. I am disappointed that the increase will not become available until March unlike previous budgets where increases were delivered on 1 January. The additional 10% on the Christmas bonus will also help those on fixed social welfare incomes with no other opportunities available to increase their incomes coming up to Christmas. This will now be an 85% bonus. The €5 increase in the State pension which we fought for and secured was a key commitment for us in our manifesto and we stipulated it in the confidence and supply arrangement. We recognise that despite claims to the contrary, older people were not protected during the last five years of regressive budgets. Older people suffered cuts to secondary benefits and increased taxes and charges. Furthermore, any increase must be looked at in the context of the fact that social welfare rates have remained stagnant for years. While the budget is a step in the right direction, more needs to be done.

An issue that is very close to my heart was just mentioned by Deputy Durkan. It is the living alone allowance. This is an issue that is felt acutely by our senior citizens when one member of a couple dies. Currently, the old age pension plus fuel allowance amounts to €509.10 per week for a couple over 80 and €489.10 per week for a couple under 80. Obviously, the majority of couples at this stage in their lives do not have a mortgage and use their weekly incomes for living expenses. However, when a member of the couple dies, they suffer not only the trauma of losing a loved one, but are also plunged into a financial crisis. The pension entitlement of the deceased ceases and the person left behind gets an extra €9 under the living alone allowance. The income is slashed by half and despite the living alone allowance of €9, it still costs the same to run the home with lighting, heating, insurance, phone bills and general utilities remaining the same. Nothing is halved except, perhaps, for the food bill. This is a payment I would like to see increased incrementally to support our senior citizens who are dependent on the State pension. This came up constantly as I canvassed during the eight months prior to the budget because this is the only income of those senior citizens who are dependent on the State pension only. When half that income goes on the death of a spouse, they find it tough. If the Minister could look at that going forward, it might be done incrementally. It might start off with a quarter of the original payment even for three years or something like that. I do not expect the whole pension to be left there, but it could be done incrementally. I refer specifically to those who are dependent on the State pension only, not to those who have another income as well. Research by the Vincentian Partnership for Social Justice has highlighted consistently the additional cost faced by those who live alone and are reliant on the income from State support.

An analysis of the budget shows that despite the €5 increase in the State pension, a pensioner living alone will still be faced with the weekly shortfall and will be not be able to afford a minimum standard of living. This underscores the need to address the inadequacy of this payment and we must address the issue in future budgets.

Budget 2017 did not increase the fuel allowance, which was cut from 32 weeks to 26 weeks by the previous Government. Not addressing the reduced purchasing power of the fuel allowance leaves long-term social welfare dependent household households particularly vulnerable to fuel poverty. From speaking to senior citizens, I know most people now use smokeless fuel. A bag of coal costs €20.50. One would, on average, use 1.5 bags a week. It is a significant part of a person's income. Older people feel the cold a lot more because they are more vulnerable in their homes. It is an issue that is raised regularly. People find it hard to heat their homes. They put on extra layers of clothes and try to move around more, and it is an issue for vulnerable older people.

I would also like to see a reversal of the elimination of the death benefit, which helped greatly when a loved one died. It was removed three years ago under the previous Government. I understand that at the time the fiscal parameters were not there, but it has a major effect on people struggling with the cost of burying a loved one.

The reduction in prescription charges from €25 to €20 very welcome, and it is to be hoped that in future budgets the charges will end. They were also introduced in difficult times and now is the time to make sure they are removed. Some 330,000 people aged over 70 years will benefit from the reduction in a charge that has caused financial stress to many. People have told me that they often put off taking all of their prescriptions in a week due to the €25 cost. In some instances, people collect all of their prescriptions on the same week of every month. Handing over €25 in one go is very difficult.

I refer to the self-employed. I have been self-employed and a PAYE worker during my life. I welcome that the invalidity pension is being extended to the self-employed. This is subject to a commencement order and is due to come into effect in December 2017. The self-employed have long been forgotten when it comes to social welfare. They take all of the risks and are the backbone of our small and medium enterprises.

I also welcome the fact that the treatment benefits package will be extended to the self-employed. Extending the scheme to the self-employed is expected to cost €3.6 million in 2017 and €4.4 million in a full year. The current scheme will be expanded for employees and the self-employed. I welcome the measure.

The expansion of the scheme will include the reintroduction of the dental scale and polish and a full restoration of optical benefits, including free glasses or a contribution of €42 towards upgrading glasses. From having spoken to people who felt that they got nothing from their PRSI contributions, I know this is very welcome.

While these measures are welcome, we must continue to build on providing a social welfare system that encourages entrepreneurship and provides an adequate social welfare safety net for those who set up their own businesses. We must actively encourage new businesses and job creation, and having a social welfare system that provides a sufficient safety net is crucial in this regard. This is the first budget under the confidence and supply arrangement, and it is new ground for all parties.

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