Brennan says that increases in social welfare largest to date

Welfare : Minister for Social and Family Affairs Séamus Brennan said the Budget provided the largest increases so far in welfare…

Welfare: Minister for Social and Family Affairs Séamus Brennan said the Budget provided the largest increases so far in welfare payments.

An extra €1.12 billion is to be provided, with €300 million specifically targeted in initiatives for older people, carers, lone parents and on measures to alleviate child poverty.

Some €800 million will go towards increasing allowances, pensions and entitlements.

Under the Budget provisions, those receiving lower welfare rates such as unemployment benefit and assistance will get increases of €17 a week.

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There will also be a €16 weekly increase in non-contributory pensions, with the old-age contributory pension rising by €14 a week.

There will also be increases in child benefit. For the first two children, child benefit rates will increase by €8.40 to €150 a month.

There will also be a €7.70 increase for third and subsequent children, bringing benefit rates to €185 a month.

Mr Brennan told a press conference last night that €300 million would be provided to fund social policy reform measures.

These include an increase of up to €30 a week in the carers' allowance, bringing the top rate to €200.

He said that the earnings eligibility threshold for the family income supplement, which provides cash support for those on low incomes, are to be increased by amounts ranging from €19 to €282 a week and targeted, in particular, at larger families.

The back-to-school clothing and footwear allowance is to be increased by €40 for each child.

The Minster said that as part of a drive to increase opportunities for lone parents, the upper earnings income threshold for one-parent family payments is to be increased by €82 a week to a new limit of €375.

The fuel allowance is also going to be increased by €5 a week to €14.

Despite signals during the year that the Budget would contain a new second-tier child benefit payment targeted at children in poverty, there was no such provision yesterday.

Mr Brennan said the National Economic and Social Council was still working on the detail of such a proposed payment.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent