Social Welfare Spending Rises By Nearly Three Billion

The Minister for Social and Family Affairs, Mary Hanafin TD, last week outlined €515 million worth of improvements in social welfare rates for the coming year.

Saying that the Government is determined to "protect those in our society who most need our support - pensioners, families dependent on social welfare payments and those who are seeking employment," she noted that they had targeted increases to deliver a package of supports for those who are mainly on a fixed income and are some of the most vulnerable across society.

"We are experiencing difficult economic times compared to previous Budgets," she continued, "and the Government has made some difficult decisions in order to secure our economic future.

"Increases in rates of payment are broadly in line with inflation and so will maintain the real value of social welfare payments.

"Overall spending on social welfare schemes is greatly increased with over €19.5billion planned to be spent supporting more than 1.7 million men, women and children."

Minister Hanafin said this coming year will see an increase of €7.00 per week for all state pensioners - Contributory and Non-Contributory Pensioners along with Carers aged 66 and over.

Increases for Qualified Adults ranges from €4.30 to €6.30 per week for those over 66 years of age. "This means that a pensioner couple will have a weekly increase of €13.30 per week," she said.

Over €260 million extra is targeted to support people of working age, claiming Jobseeker's Benefit or Allowance, which increases by €6.50 per week to €204.30 per week from January 2009.

Overall, some 733,000 people are in receipt of working age payments - Jobseeker's, One Parent Families, those claiming Illness Benefit and Disability Allowance as well as Carers - will all benefit from increases in weekly personal rates in the coming year.

The Fuel Allowance is increasing by €2 per week to €20, from January 2009, an 11% increase, while the number of weeks covered by the fuel allowance is to be extended by 2 weeks to 32 weeks from April next year.

The cost of increasing the fuel allowance and extending the fuel season will be almost €30 million extra in 2009 with some 300,000 households benefiting from the fuel allowance scheme.

Minister Hanafin said that there were "targeted increases for families with children who are in receipt of social welfare payments or low income earners through the Family Income Supplement."

Family Income Supplement is to increase the earnings threshold by €10 per child, which gives an increase of up to €6 per week per child.

For those in receipt of social welfare payments with children the Qualified Child Increase rises from €24 to €26 per week from January.

There is also an extension in the numbers eligible to claim the Back to School Clothing and Footwear Allowance.

In relation to reforms of the Child Benefit system, Minister Hanafin said that the Government has decided that Child Benefit will no longer be paid in respect of children who are 18 years of age.

In phasing in this change those who are 18 in 2009 will receive half rate benefit, while payment of Child Benefit for 18 year olds will cease from 2010.

For those in receipt of social welfare payments or low income families there will be special alleviating measures through an increased Qualified Child Allowance as well as increases in the Back to School Clothing and Footwear Allowance and Family Income Supplements where families have children of 18 years of age. These measures will be in place until January 2011.