Social welfare spending as a share of GNP
The Minister supplied the requested figures and said the increase reflected higher benefit rates and new schemes, rather than being alarming. Asked about unemployment’s contribution, he said the figures were not broken down by scheme and reiterated that policy changes accounted for much of the rise.
asked the Minister for Social Welfare the expenditure on social welfare in 1983 as a percentage of the GNP for 1983; and if he will give corresponding figures for 1973.
Comment on this
Total social welfare expenditure as a percentage of the GNP for the years in question was as follows:
In the case of 1973-74 figures for the year ended 31 March 1974 only are available. Accounting on a calendar year basis did not come into operation until the beginning of 1975.
Comment on this
Would the Minister not accept that these figures, caused by rising unemployment, are alarming figures to produce in the House — 14 per cent as against 7½ per cent ten years ago? What action will the Department take to reduce these figures?
Comment on this
On the contrary, I do not think they are alarming. The increase represents not only improving rates of benefits but the expansion of the schemes in the past ten years. The increase in those years has been due largely to the policies of successive Governments to provide real increases in payment rates and other major developments, like the introduction of the pay-related scheme in April 1974, the introduction of three new assistance schemes such as the unmarried mother's allowance in July 1983, the prisoners' wives' allowance and the single woman's allowance in July 1974, the reduction in the old age pension age to 66 years between July 1973 and October 1977, and the substitution of a new scheme of supplementary welfare allowances. Therefore, the increase is fully justified to cover all those schemes.
Comment on this
Is any element of that increase due to the increased numbers unemployed, and what is that increase?
Comment on this
That is a separate question. The question refers to the expenditure on social welfare as a whole and it is not broken down into the various schemes. I reiterate that the increase is largely due to the policies of successive Governments during the years in increasing social welfare payments and introducing new schemes. The increases since 1973 in the rates of payment and the increases in the number of schemes have been enormous. They have resulted in increased spending on social welfare.
4.