Written answers

Thursday, 14 December 2006

Department of Social and Family Affairs

Anti-Poverty Strategy

7:00 pm

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)
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Question 31: To ask the Minister for Social and Family Affairs if his attention has been drawn to the results of the research carried out by the Vincentian Partnership for Social Justice which suggested that most households on social welfare do not have enough to sustain a basic standard of living; his views on the findings of this research; the steps he will take to deal with this situation; and if he will make a statement on the matter. [43115/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I welcome the launch, late last month, of the latest research report of the Vincentian Partnership for Social Justice, titled " Minimum Essential Budgets for Six Households". My Department will examine the research report and its recommendations over the next period in the context of setting future policy direction.

It is clear that Government has already acted, in 2006, to address some of the problems and challenges identified in this report, and in other similar studies. Such actions include:

The introduction of the early childcare supplement (introduced after the research for this project was conducted);

The introduction of new National Childcare Investment Programme;

Changes in the upper earnings limit for one-parent family payment;

Major proposals for lone parents, designed to remove them from poverty and to enable them to (re)join the workforce.

This Government is committed to significantly improving the standard of living of welfare dependent and low-income households and to making a decisive impact on poverty and social exclusion. Over the period since 1997, the Government has greatly increased the levels of income support provided through the social welfare system and this was again evident in the increases announced last week as part of Budget 2007. Expenditure on social welfare has increased by nearly 270% since 1997. In 2007 almost €15.5 billion is being allocated to social welfare compared to €5.7 billion in 1997.

Budget 2007 has provided over €1.4 billion, the largest social welfare package ever in the history of the State. This is more than five times the amount allocated to social welfare in the 1997 Budget. Almost one third of all current Government expenditure is being provided for social welfare in 2007 to directly support and benefit one and a half million people.

Just to list some specifics. In Budget 2007:

We have delivered on our commitment in the Programme for Government by bringing the basic State Pension to €200 a week.

The contributory pension has increased by €16 a week to €209.30 and other social welfare rates by €20 a week to €185.80.

About 35,500 contributory pensioner couples will be nearly €40 a week better off.

We have realised the 2007 target for the lowest social welfare rates. The lowest rate of Social Welfare payments have increased by 12.1%, far in excess of the expected increase of 4.5% in private sector earnings and almost three times the forecast rate of inflation for 2007.

Since 1997, the lowest rates of welfare payments have increased by almost 117%, well ahead of the 53% accumulated inflation over that period.

We are also delivering on the pledge to tackle remaining levels of child poverty. A number of key measures are, in particular, shaped and targeted at confronting and tackling remaining child poverty, including

an increase of €10 in Child Benefit to over one million children that takes this universal support to at least €160 per month.

combining the three rates of Child Dependant Allowance payments into a single rate of €22 per week that will benefit over 340,000 children of families on welfare.

Increasing the Back to School Clothing and Footwear Allowance by 50%.

In recent years, we have lifted more than 100,000 children out of poverty. The measures I have outlined will pay a major part in completing this task.

We are confronting the issue of fuel poverty. Last year, I increased the fuel allowance by €5 a week to €14 and this year I am again increasing it by a further €4 to €18 a week. This means that the level of the fuel allowance, which is paid to 274,000 recipients, will have doubled in the last two years. As I already announced in September last, as and from next January, the number of free units of electricity and gas paid under the Household Benefits Scheme will increase by 600 units a year to 2,400 units.

In Budget 2007, I also announced a wide-ranging employment support package of €21 million. This contained a range of measures which will alleviate poverty and support activation by improving income disregards and tapers for the unemployed and qualified adults. These arrangements maximise the benefits of work for low-income households.

The full package of measures I announced for carers will cost in excess of €107 million in a full year and are further evidence, if such was needed, of this Government's commitment to improving the lot of family carers and the people they look after.

Key reforms included increases in the income disregards for entitlement to Carer's Allowance and a 25% increase in the Respite Care Grant, to €1,500 per week.

I was also delighted to announce that I am introducing fundamental structural reforms in relation to carers. In future people in receipt of another social welfare payment, who are also providing full time care and attention to a person, will be able to retain their main welfare payment and receive another payment, equivalent to a half rate Carer's Allowance. The precise details of this arrangement are currently being examined by my Department and will be set out in legislation next year.

In conclusion, the 2007 Budget package is a strong statement of this Government's commitment to the elderly, children, carers and all those who, for one reason or another, are more vulnerable in our society.

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