The social welfare increases announced on Budget day will take effect from the first week in January, four weeks after the Budget speech. Until last year, changes took effect six months after they were announced.
More than 890,000 people will benefit from next year's social welfare increases. This comprises 270,000 people who are receiving short-term payments such as unemployment and disability benefit, and a further 623,000 who are on long-term payments such as pension and one-parent family payments. The vast majority of the people who are getting short-term payments will receive their increase from the beginning of January.
Those on long-term weekly social welfare payments will receive their increases from February. Back-dated payment for January will be included in the first order in the new books for 210,000 customers in early February 2002. These include people in receipt of the widow's, widower's, one-parent family and invalidity payments. People in this group are receiving their Christmas bonus of a double payment this week. Most of the payments are still paid at the post office through a book of orders.
A further 393,000 - old age and retirement pensioners - who are not due to get new books until April 2002 will receive a special single order payment in mid-February 2002. It will have the increase from January and a seven week advance payment of the increase to bring them up to the date on which their new books arrive. This means that all beneficiaries will be in receipt of payments at the new rates from the middle of February at the latest, the Department said.
Those who are getting the family income supplement, disablement benefit, rent allowance, and carer's benefit will receive their social welfare Budget increases in January.
The Minister for Social, Community and Family affairs, Mr Dermot Ahern, and officials of his Department are currently meeting representatives of social welfare interest groups advising them of the arrangements to pay the increases.