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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Social Welfare Benefits.

Adequacy of social welfare increases

Summary

Woods challenged whether the increases in pensions and dependent allowances could meet higher VAT, electricity and other costs. Flaherty said the 5% pension increase represented a real increase and the 3% increase for other payments compensated for indirect taxes, while acknowledging benefit levels were inadequate and promising a broader review; the exchange also disputed the size of increases for child dependants.

asked the Minister for Social Welfare if she considers that the 5p per week increase for dependants of blind pensioners, the 15p per week increase for dependants of workers on unemployment assistance and the 10p per week increase in the living alone allowance for old age pensioners from 1 October are adequate to meet the increased VAT, ESB and other charges imposed by the Government since 1 July.

20.

Comment on this

asked the Minister for Social Welfare if she considers that the 3 per cent increase in pensions for widows, the unemployed, blind pensioners and the disabled from 1 October 1981 is adequate to meet the increased VAT, ESB and other charges imposed by the Government since 1 July.

21.

Comment on this

asked the Minister for Social Welfare if she considers that the 5 per cent increase in old age pensions from 1 October 1981 is adequate to meet the increased VAT, ESB and other charges imposed by the Government since 1 July.

Comment on this
Mary Flaherty Miss Flaherty Fine Gael

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 19, 20 and 21 together.

Social welfare payments were increased in April last by the previous Government and there was no provision for further increases this year. The October increase of 5 per cent in all pensions to persons over age 66 and to retirement pensioners represented a real increase in these payments. The 3 per cent increase in all other social welfare payments was provided to compensate for the rises in indirect taxes.

With regard to the references to increases of 5p, 10p and 15p, I would like to point out that these increases are increases of supplements to other payments made to the beneficiaries concerned which were themselves also increased.

Comment on this

On a point of information, how can the Minister of State know that there was no intention to increase any of the benefits further later in the year? Secondly, is it not necessary for the Minister to come to the House to seek the authority of the House for a Supplementary Estimate to cover these increases now? Thirdly, will the Minister of State confirm that of the increases which are mentioned here, the increase for child dependants of widows, deserted wives and unmarried mothers of 25p is the total increase which the child gets and that it differs from the blind pension supplement? It is the only increase which the child of a widow gets. I would like the Minister of State to make that quite clear in case people would misunderstand the point made by her in her reply. I appreciate that that would apply to the blind pension as a supplementary allowance, but that is the only increase as far as the children are concerned in these cases. As far as the living alone allowance is concerned, 10p is the total increase which has been given in that allowance. I believe that the Minister of State is also very much aware that these increases are derisory in this respect.

Comment on this
Mary Flaherty Miss Flaherty Fine Gael

The increases mentioned by the Deputy are not in any case at the level he was suggesting. In so far as they are a percentage of an existing payment they represent an increase which related to the cost of living increase that we planned in our budget which related to the level then. The level of benefits in general is not adequate and our Government are committed to reexamining that in the wider sense.

Comment on this

Would the Minister of State confirm that the increase of 15p per week for dependants of workers on unemployment assistance is the only increase which these dependants will get at this time?

Comment on this
Mary Flaherty Miss Flaherty Fine Gael

Would the Deputy please repeat the question?

Comment on this

The dependants of those who are on unemployment assistance referred to in Question No. 19 will get only 10p per week increase. That is the only increase which dependants of workers on unemployment assistance will get at this time.

Comment on this
Mary Flaherty Miss Flaherty Fine Gael

The 15p per week increase is the increase for a child dependant payable to a married man in receipt of unemployment assistance. The basic allowance is increased by 60p per week and the additional allowance for an adult dependant is increased by 45p per week. Once again, the implication that this was the only amount paid is not accurate.

Comment on this

On a point of factual information I want to make clear without pressing the matter any further that the only increase granted for a child is the 15p. Would the Minister of State agree that this is the case? I appreciate that it is quite embarrassing for the Government at this stage since it is so derisory. I accept that there is a 3 per cent increase for the beneficiary on the basis of the unemployed person but as far as the allowance for a child dependant is concerned that allowance is increased by 15p.

Comment on this

Has the Deputy's party's Estimate made any provision this year for any further increases?

Comment on this
Mary Flaherty Miss Flaherty Fine Gael

I repeat the point that the increases obviously relate as a percentage increase to the existing level of the benefits. If the Deputy is so horrified at the amount of 5 per cent increase I hope that he is equally horrified at the level at which his own Government set those benefits. The question related to the increased cost of VAT and ESB charges, and it is fair to consider increases in a family situation in that context because it is in part of a family budget that a child is catered for.

Comment on this
John F. O'Connell An Ceann Comhairle Independent

We go to the next question.

Comment on this

Three questions are being taken together. The Minister of State has mentioned ESB increases. Is she aware in respect of the ESB increase which has now taken place that bills are on the way out at the moment? Some people have received them already but the bulk will be coming out now over the next week or so. On the basis of a 25 per cent increase they will involve £3 to £4 a week increase for those people on unemployment assistance, and that is for ESB bills alone. In that event would the Minister of State agree that the increases generally are derisory?

Comment on this

That is the effect of having to recoup the losses which the Deputy's Government enforced on them.

Comment on this

Is the Deputy also in the propaganda campaign?

Comment on this
John F. O'Connell An Ceann Comhairle Independent

The Minister of State at the Department of Social Welfare.

Comment on this

I apologise, a Cheann Comhairle, but you do appreciate——

Comment on this
Mary Flaherty Miss Flaherty Fine Gael

The cost of living increases in this country in the past year are very serious and worrying and the impact is on all particularly the poor. I regret that it is so, and when we have a chance of running the economy for one full year we will seek to make a significant improvement in both the rate of inflation and the level of benefits. The increases involved here covered increases which arose as a result of our budget. Further, there was an increase in the free fuel allowance.

22.

Comment on this