Written answers

Tuesday, 19 January 2010

Department of Social and Family Affairs

Departmental Expenditure

9:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 791: To ask the Minister for Social and Family Affairs her plans to make further cuts to social welfare rates in 2011. [1945/10]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Social welfare changes for 2011 will be considered later this year in the context of next year's Budget preparations, having regard both to needs and to the resources available to meet those needs.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 792: To ask the Minister for Social and Family Affairs if she has read the recently released report, entitled, How the Poor were made to pay, an analysis of the impact of budget 2010, produced by a number of anti-poverty agencies; and if she will make a statement on the matter. [1946/10]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I have noted the contents of the recently released report How the Poor were made to pay: an analysis of the impact of the December 2009 Budget.

I appreciate that the cuts made in the welfare area will not be easy for people but I genuinely believe that if the Government doesn't take steps now to reduce overall public expenditure and restore stability to the public finances, we risk making the economic situation far worse for everyone - including welfare recipients - in the long term.

The reductions made to welfare rates in the Budget are estimated to generate savings of €762 million in 2010 vis a vis the Pre-Budget estimate. Even so €21.1 billion will be spent on social welfare in 2010 - €676 million or 3.3% more than the expected final expenditure figure of €20.4 billion for 2009. The changes made in the Budget will reduce overall public expenditure and improve the financial incentive for jobseeker's to take up work or training.

In doing so, we have avoided making any cuts in the State pension . We have also fully protected more than 420,000 children in welfare-dependent and low-income families from cuts in Child Benefit. And, we have ensured that cuts in weekly rates for those aged under 66 are lower than the decreases in prices over the past year or so and that welfare recipients are therefore still better off in real terms.

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