Written answers

Tuesday, 17 November 2015

Department of Social Protection

Social Welfare Benefits Expenditure

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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76. To ask the Tánaiste and Minister for Social Protection her views that only two of 40 social protection cuts have been restored in full; and if she will make a statement on the matter. [40067/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Both the last Government and the current Government have introduced a range of welfare expenditure reduction measures in order to restore the public finances to health and to reduce our debt to sustainable levels. During their time in office, the previous Government introduced a wide range of cost saving measures in the welfare area including:

- An 8% reduction in the weekly personal rates of payment for all welfare recipients aged under 66.

- The abolition of the Christmas Bonus.

- Various reductions in the rate of Child Benefit.

- The limitation of Illness Benefit to two years duration for new claimants.

The current Government have also had to make difficult choices in welfare and other areas. However, we now have been able to exit the bailout, reduce our debts and move into a real recovery. The top priority in the coming years is to safeguard and enhance that recovery and, at the same time, to provide enhanced social supports including welfare supports.

The recent Budget was designed to improve the lives and living standards of every person and every family in the country. It represents a picture of a country moving firmly in the right direction. In particular, I was pleased to be able to announce a significant social welfare package. This had four key aims, as follows:

- To increase supports for pensioners aged 66 and over.

- To strengthen supports for families with children.

- To increase the momentum to date in helping jobseekers back to work.

- To provide targeted assistance for vulnerable groups.

Last year, I reintroduced a Christmas Bonus payable at 25% of the weekly rate. This year, I am in a position to provide a 75% Christmas Bonus payment for all welfare recipients, including pensioners. A single young unemployed jobseeker in receipt of €100 rate of Jobseeker’s Allowance for 15 months will receive a Christmas bonus payment of €75, while a person in receipt of the €144 for 15 months will receive €108. A single person in receipt of Disability Allowance will receive a bonus payment of €141. A couple in receipt of the Blind Pension, with a qualified adult and no children will receive a bonus of €234.60. A couple in receipt of Invalidity Pension with a qualified adult and two qualified children will receive a bonus payment of €293.40.

More than 676,500 pensioners and their dependants will benefit from the above-inflation €3 increase in the weekly rate of payments to all social welfare recipients aged 66 and over. This is the first weekly rate increase for pensioners since 2009 and builds on the increase in the Living Alone Allowance last year. This is the first general rate increase for pensioners since 2009.

It should be noted that carers aged 66 and over will benefit from the €3 weekly rate increase. This rate increase will also benefit carers in receipt of the half-rate Carer’s Allowance aged 66 and over, who will gain by €1.50 per week.

The Respite Care Grant, to be renamed the Carer's Support Grant to better reflect the usage of the grant, will also be increased by €325, from €1,375 to €1,700 per annum. Furthermore, payment of Carer's Allowance will be extended by 6 weeks, from 6 weeks to 12 weeks, after the death of the care recipient.

In addition, those eligible for the Fuel Allowance will gain from the increase in January of €2.50 per week, from €20 to €22.50 per week over the fuel season.

Funding for the Free Travel scheme, which benefits a large number of pensioners, is being increased by €3 m, from €77 m to €80 m, to meet increased numbers eligible for the scheme and therefore fully protect entitlements under the scheme.

In regard to families with children, I am introducing a number of important measures including:

- A €5 increase in Child Benefit, which increases the rate from €135 to €140 per month per child. This will benefit over 623,000 families in respect of almost 1.2 million children.

- Increased funding for the School Meals programme of €3 million, bringing the provision to €42 million in 2016.

- The introduction of a new Paternity Benefit scheme whereby fathers will, for the first time, have the option of applying for 2 weeks’ leave in respect of births from September 2016. This measure recognises the important role of fathers in bringing up their children.

- An additional €18 million to increase the Family Income Supplement (FIS) thresholds - by €5 for a family with one child and by €10 for a family with two children or more. The measure will benefit nearly 60,000 families and over 131,000 children.

Finally, I am also introducing a PRSI Credit which will benefit over 88,000 lower earners with weekly income between €352.01 and €424, by reducing the amount of PRSI they pay in a week. This complements the increase in the minimum wage by ensuring that those on low earnings brought within the PRSI net will pay a significantly lower amount of PRSI per week, than would currently apply.

Because through the perseverance of our people, we now have a very strong recovery. This Budget will help in that process of spreading that recovery more widely. Maintaining a strong economy and sensibly managing the public finances is the priority while raising living standards across the board and investing in the services that a decent society requires.

We have not got to our destination yet but it is within sight and within reach. With this Budget, we took another firm step towards it.

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