Written answers

Tuesday, 6 July 2010

Department of Social and Family Affairs

Departmental Expenditure

10:00 am

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 455: To ask the Minister for Social Protection if he will support a matter (details supplied). [29788/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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I fully appreciate that the changes made in the welfare area are not easy for people but I believe that if the Government had not taken the steps now to reduce overall public expenditure and restore stability to the public finances, we would have run the risk of making the economic and social situation far worse for everyone, particularly welfare recipients, in the medium term. Despite the social welfare changes made in the last Budget, the expenditure of my Department will still increase in 2010. Nearly €21 billion will be spent on social welfare this year or €500 million more than in 2009.

The October 2008 budget provided for increases of between 3% and 3.8% in the basic payment rates at a time when inflation for 2009 was expected to be 2.5%. Prices declined by an average of 4.5% in 2009. This trend continued in January when prices declined by 1.1%. While there have been some increases in inflation in recent months, consumer prices are back at March 2007 levels. However, the lowest weekly rate of payment for those aged between 25 and 66 is currently over €10 higher than in 2007.

I note that the Poor Can't Pay coalition, in a recent statement, is concerned about the impact of any further welfare changes. 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.

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