€12.49 billion spend will be largest ever in sector

Social welfare: Increases in child benefit, the old-age pension and the carer's allowance are among those expected in next month…

Social welfare:Increases in child benefit, the old-age pension and the carer's allowance are among those expected in next month's Budget, the Minister for Social and Family Affairs signalled yesterday.

This follows publication of the department's estimates yesterday, which show next year's spend on social welfare will increase by €200 million to €12.49 billion, the largest ever directed towards the area.

However, this allocation is expected to rise by up to €1 billion more in discussions with the Minister for Finance ahead of the the Budget on December 7th.

The main increases under yesterday's estimates allocation are: the disability allowance/invalidity pension (up €48.4 million); old-age pensions (up €60 million); child benefit (up €45 million); carer's allowance and respite-care grants (up €20 million).

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Minister Séamus Brennan said yesterday that targets agreed with social partners on increases in child benefit, old-age pension and basic welfare rates would be met or kept on track in the Budget.

These targets include raising the lowest rates of weekly social welfare payments to €150 a week by 2007, which may result in a Budget increase of about €15 next month. Other increases will come in child benefit and the old-age pension.

While €45 million has been set aside for an increase in child benefit, which cost in the region of €2.2 billion this year, there may be scope for a further increase under a childcare package due to be unveiled in the Budget.

Mr Brennan said yesterday these issues were still under discussion and it was too early to determine whether a child-benefit increase would form part of a childcare initiative. It is understood, however, that officials are examining the potential for a benefit increase for under-fives.

He confirmed that officials were examining the scope for an increase in the fuel allowance, which had been called for by the Fianna Fáil parliamentary party.

However, he said it has been departmental policy to provide overall welfare increases rather than individual increases for such benefits.

A targeted welfare benefit increase for children in poverty is also expected to be announced in the Budget, which may merge the Family Income Supplement and Child Dependent Allowance.

Overall, the Minister said the social welfare budget, which accounts for almost a third of Government spending, would be directed towards a social reform agenda. Instead of general increases, he was determined a "deep social policy" would be at the heart of payments.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent