Six-week delay in welfare increases attacked

Fine Gael has sharply criticised the Government following the discovery that there will be a six-week delay next year in paying…

Fine Gael has sharply criticised the Government following the discovery that there will be a six-week delay next year in paying social welfare increases to 500,000 people.

Instead of getting increases from January 1st, the group will have to wait until mid-February because the Department of Social, Community and Family Affairs cannot get revised welfare books printed more quickly.

However, 300,000 others, in receipt of disability allowances, maternity benefit and supplementary social welfare, will be paid the full payment immediately, said the Department.

Last night, the Fine Gael spokesman on social welfare, Mr Brian Hayes, said the delay was an example of "unbelievable incompetence. This highlights just how out of touch this administration has become."

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The argument of the Minister for Social, Community and Family Affairs, Mr Ahern, that the delay was unavoidable "simply doesn't wash". He had two years to prepare for bringing forward the tax year from April to January, Mr Hayes said.

In addition, the Minister for Finance, Mr McCreevy, announced last February that this year's Budget would be announced on December 5th. "Why did it take two years for Dermot Ahern to work out the implications of this? Why is the Government exempt from the provisions of the prompt legislation enacted in 1997?" Mr Hayes asked.

For decades, social welfare increases announced in a February budget were not paid until June. Next year's early payment could deliver an electoral boost for the Government, some senior figures hope. The logistics could be especially difficult because of the introduction of the euro, which becomes the sole legal tender from the middle of February.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times