Focus is on families, the elderly in £850m social welfare increase

The social welfare package in this year's Budget maintained a trend of focusing special attention on families and the elderly…

The social welfare package in this year's Budget maintained a trend of focusing special attention on families and the elderly.

Increases in child benefit and pensions and the streamlining of household benefits reflect the prioritisation of these groups.

While the measures inevitably failed to meet the wish-lists of all lobby groups, it was significant that despite the economic climate, the size of the social welfare increase was maintained at the same level as last year, €1,079 million (£850 million).

By contrast, the taxation measures in this Budget were about £500 million, compared to £1.2 billion last year.

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The £850 million will increase spending by the Department of Social, Community and Family Affairs next year to more than £7.4 billion, a rise of more than 20 per cent on 2001.

In addition to the social welfare increases, £1.6 billion was allocated for social inclusions measures across all Government departments.

The headline measures in yesterday's Budget are the £10 increase in the weekly old-age pension, a £12 weekly increase in the widows' pension, and a monthly increase of £25 in child benefit for first and second children, and £30 for subsequent children.

Mr Dermot Ahern, the Minister for Social, Community and Family Affairs, said last night there had been "quite a struggle" to secure this year's child benefit increases. This measure alone cost £326 million of the total social welfare package of £850 million.

The struggle was despite the fact the increases were part of a stated Government target for child benefit levels to be met next year. Possible alternatives would have been to stretch out the increases beyond next year's target, a move which would have been badly received by lobby groups.

While the substantial increases in child benefit have been welcomed, campaigners last night stressed that Ireland still had one of the highest levels of child poverty in Europe.

The Government's National Children's Strategy has the elimination of child poverty as one of its objectives.

Clearly, in order to tackle child poverty, which is linked to poor health, the introduction of medical cards for all children aged under 18 would be a big boost. The battle on that front continues.

Child dependent allowances, which are given to the poorest in the community, were not increased. This will no doubt disappoint groups working with children.

Organisations representing those on low incomes said they were disappointed with the £8 increase in the basic weekly welfare payments. Most had sought a £14 weekly increase.

The Society of St Vincent de Paul said this was a "slap in the face" for those on low incomes and would not ensure an adequate income for households in need.

The increase was nevertheless about double the rate of inflation. So while those on lowest social welfare benefits might not have been this year's winners, they will at least be keeping up. They will also be eligible for benefits like free fuel and child benefit.

A more significant issue which is still up for grabs relates to the index-linking of social welfare payments. A majority recommendation of a PPF working group on the benchmarking of social welfare payments recently said welfare should be linked to 27 per cent of gross average industrial earnings.

While this Budget's increases are broadly in line with that target, to have such an approach formally adopted would ensure consistent rises for people on social welfare.

When questioned last night about the £8 social welfare payment increase, Mr Ahern said it was a question of priorities.

The Government has long indicated that the elderly, widows and families rank highest on their target list.

The issue of benchmarking social welfare payments is due to be discussed within the context of the ongoing review of the National Anti-Poverty Strategy. That strategy is the next big set piece in Mr Ahern's diary, and lobby groups will be hoping it tackles poverty with meaningful and precise targets.

One universal advantage for weekly social welfare claimants is that for the first time, this year the Budget increases will kick in January.

In previous years, the new rates took effect between April and June, thereby depriving people of up to 39 weeks of payments.