Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 271: To ask the Minister for Social and Family Affairs if his Department has studied the case for reintroducing a pay-related element into sickness benefit, which would be common in social insurance models throughout most of Europe; and if he will make a statement on the matter. [15143/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The Irish social welfare system is primarily a flat-rate system, and rates of payment under the various schemes are set by reference to the objective of ensuring an income for recipients sufficient to live life with dignity. The policy followed by successive Governments has been to increase the basic levels of payment up to a benchmark level of €150 per week in 2002 terms by 2007.

The payment of a pay-related benefit supplement, or PRB, in addition to disability benefit was phased out with effect from April 1992 as part of the policy of directing available resources towards those most in need by increasing the basic rate of payment rather than through pay-related supplements. That policy is broadly in line with the recommendations of the Commission on Social Welfare.

The basic rate of disability benefit has been significantly increased since 1992. While the cost of living index rose by 39.9% in the period, the rate of disability benefit increased by 100.3%, that is, 2.5 times the rate of inflation. In addition, the rate of disability benefit has increased by significantly more than average industrial earnings, which increased by 81.1% in the period up to December 2004.

Improvements in the basic rate of disability benefit are of benefit to all recipients, whereas PRB was only paid in the case of a minority of recipients — in the region of 20%.

There are no plans for the reintroduction of the pay-related element to disability benefit.