Action to tackle effects of inflation on pensions urged

The Government was urged to address the impact of rising inflation on the real value of social welfare payments.

The Government was urged to address the impact of rising inflation on the real value of social welfare payments.

The Fine Gael spokeswoman on social, community and family affairs, Ms Frances Fitzgerald, claimed a compensation package had been turned down by the Cabinet. She said thousands of people dependent on welfare allowances had seen them ravaged by inflation.

The Minister for Social, Community and Family Affairs, Mr Ahern, said that over the last three budgets, even taking into account the fact that people under 65 years of age were, in effect, in a static position, they had received a real increase.

The figures proved they had received an increase way in excess of anything given by any previous government. The problems created by rising inflation would be taken into account by the Government in framing the Budget for next year.

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"I should point out that the Government has increased the Christmas bonus from 70 per cent to 100 per cent at a cost of approximately €20 million." Mr Ahern said he could not comment on discussions that took place in Cabinet.