Seanad debates

Thursday, 15 December 2005

Social Welfare Bill 2005: Second Stage.

 

12:00 pm

Photo of John Gerard HanafinJohn Gerard Hanafin (Fianna Fail)

Every budget belongs to the people, but this budget can particularly be described as the people's budget because it provides for substantial social policy reforms, which are being enacted in the Social Welfare Bill 2005. It can be described as a family budget because it offers significant increases to the elderly, people on benefit and people in receipt of child care payments. As a result of this budget, a family with three children, one of whom is under the age of six, will receive approximately €6,000 in child benefit each year. By contrast, the average income in Poland is approximately €5,500, or just €3,700 after tax. It is natural that one cannot compare the levels of purchasing power in Poland and Ireland, but this country is a beacon for countries like Poland. I am not surprised that these measures have been introduced by a Fianna Fáil-led Government.

I am proud of the significant changes which have been made in the area of child care, such as the decision to make an annual payment of €1,000 in respect of each child under the age of six. Child benefit payments have been increased and an additional 50,000 child care places will be provided. The parents of this country's 350,000 children under the age of six will benefit from direct financial support of over €50 per week. The delivery of quality child care will be boosted by improved training arrangements. Some 17,000 child care workers will be trained every five years. When I finished second level education in the late 1970s and started to work in the 1980s, I never thought this country would ever be in a position to provide such benefits. It is said that the past is a different country, but in this instance it is a different world.

A new package of measures worth €150 million is being introduced to improve the care of the elderly. Under the new home care packages which are being put in place, the provision of home help support, day care assistance and palliative care will increase substantially. The weekly rate of carer's allowance in respect of people aged 66 or over will be increased from €169.80 to €200. The weekly rate in respect of those under the age of 66 will be increased by €27 to €180. The respite care grant payment will be increased by €200 to €1,200. The changes made in the budget are so significant that every party in the House should lay claim to them as a national achievement. I am particularly proud of them. The weekly old age pension rate will increase by €14 in 2006, to over €193. The contributory old age pension has increased by 93% since 1997.

Also of benefit to older people is the increase in the rate of fuel allowance from €9 to €14 per week. The fuel allowance has been supplemented by the reduction in the rate of tax payable on kerosene and gas, again assisting people in conjunction with the reduction in prices at the pumps. These are three whammies for those depending on fuel. It will be a significant and ongoing benefit.

The non-contributory pension has been increased by €16 bringing the rate to €182. As many non-contributory pensioners want to work beyond retirement age but are prevented from doing so because of the means test, the non-contributory pension is being changed in order that earnings from employment of up to €100 per week will be disregarded for means test purposes.

In addition to increases in pensions, fuel allowance, child benefit, and carer's allowance there is a package for child poverty. The earnings threshold for family income supplement, which provides cash support for workers on low earnings, has been significantly increased by amounts ranging from €19, bringing the rate to €282 per week and targeted, in particular, at larger families. There is a new drive to increase opportunities for lone parents. The upper earning limit income for the one-parent family payment has been substantially increased by €82 per week to a new limit of €375. Of the 80,000 lone parents in receipt of the payment, it is estimated that 60% are in full or part-time employment. I have a particular interest here because when so much is given it is important to look at the few areas we need to improve on.

Education is the key at all times. We need to ensure that lone parents, through the child care system and the welfare system, can upskill and play an even greater role in society. On top of the generous increases there are new enhanced support schemes that promote activation and opportunities and choices to welfare recipients, in particular the unemployed, so as to ensure that the potential contribution of each and every individual is recognised and not neglected.

I congratulate the Minister on his efforts. The changes introduced make this an excellent budget. As I said earlier, it is the people's budget.

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