1.5m people to receive new welfare increases next week

Social welfare increases for 1

Social welfare increases for 1.5 million people announced on Budget Day, worth more than €900 million a year, will come into force from next week, writes Mark Hennessy, Political Correspondent

The contributory and transitory State pensions - previously known as the old age pensions and which are received by 420,000 people - will rise to €223.30 a week.

Invalids over the age of 65 will receive an extra €14 a week, as will those in receipt of widow's and widower's (contributory) pension who are aged 66 years and over.

Non-contributory pensioners will receive an increase of €12, bringing that payment to €212 a week, Minister for Social and Family Affairs Martin Cullen said.

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More than 42,000 spouses and partners aged over 66 who already receive contributory, transition or invalidity pensions, will get an extra €27 a week, bringing their maximum payment to €200 a week.

"At a time of more moderate growth, our first priority must be to ensure that the less well off in society are protected," Mr Cullen said. "Budget 2008 provides significant resources to allow us to address the needs of the most disadvantaged in our society."

The changes made to benefits received by spouses and partners were "a major step" towards bringing their payments into line with the State (non-contributory) pension, he said.

Combined with the general increases in pensions, the measure would mean that the income of 42,000 pensioner couples will increase "by up to €41 a week, or nearly 11 per cent".

Since last September, the payments are now made directly to spouses and partners. "This is an important improvement in the social welfare code that again benefits mainly women," he said.

More than 40,000 carers will get an extra €14 a week, bringing the carer's allowance for those aged 66 or over to €232 a week and €214 a week for those aged under 66. Single carers will be able to earn €332.50 elsewhere before losing any part of the carer's allowance, while couples will be entitled to have €665 worth of other income before facing reductions.

The new weekly rate for the qualified child payment - previously known as the child dependant allowance - will increase by €2 to €24. The minimum rate for the maternity and adoptive benefit will rise by €14 a week to €221.80.

The qualifying thresholds for the family income supplement will increase by €10 a week for each child, the Minister said.

The back-to-school clothing and footwear allowance will increase by €20 a child from €180 to €200 for children aged 2-11 years and from €285 to €305 for children aged 12-22 years.

The maximum threshold for entitlement to one-parent family payment will rise from €400 to €425 a week, while PRSI, health and superannuation contributions and trade union subscriptions will be disregarded when earnings are being assessed for entitlement.

The entitlement to the natural gas allowance will be extended to include gas which is not delivered via the national grid.