Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 193: To ask the Minister for Social Protection his plans to respond to a number of flagged price hikes of essential goods including the price of quality meat and the price of electricity. [4647/11]

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Government is very mindful of the impact of price rises in any area but particularly where essential goods and services are concerned. As the Deputy will appreciate it is not feasible to have the social welfare system respond when prices of particular goods increase, as it is necessary to consider the adequacy of payments in the aggregate. In that regard, I would like to point out that the annual average rate of inflation for 2010 per the CSO was negative (-1%). While there have been some increases in inflation in recent months, consumer prices are back at April 2007 levels. After Budget 2011, most working age rates of payment to those aged between 25 and 66 will be €2.20 higher than in 2007.

I would also like to point out that with regard to persons in receipt of household benefits, the electricity allowance is based on units of electricity and not cost and accordingly these people are protected from increased prices for a portion of their usage.

Over the period from 2004 to 2011, the weekly rates of social welfare payments have increased significantly, as follows;

· Carer's Allowance (aged under 66) has increased by 46.1%.

· Jobseeker's Allowance, Disability Allowance and One Parent Family Payment have increased by 39.5%.

· State Pension Contributory has increased by 37.7%

· State Pension Non Contributory has increased by 42.2%

Over the same period, the cost of living has increased by just under 12%.

This data includes the impact of the reductions in certain payments in the last two budgets. I fully appreciate the changes made are not easy for those affected but believe that if the Government had not taken the steps 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, including welfare recipients.