Payments to immigrants seeking asylum are expected to be the major contributor to an increase in Government spending on supplementary allowances of 16 per cent or £203 million next year, officials have indicated.
But Government spending on unemployment assistance - before counting in Budget day increases - will fall by 1 per cent next year, and social assistance and other allowances will fall by 8 per cent.
This is a sign the Government expects more people to move off the live register next year, given the current economic boom. Higher payments for existing recipients will be announced on Budget day.
According to the Minister for Social, Community and Family Affairs, Mr Ahern, the gross amount spent by his Department is set to increase by £210 million - 5 per cent - next year. Further increases will be announced in the Budget.
The increase in expenditure shown in the Estimates is related to recent improvement in social welfare payments such as payments to older people and carers. He said these increases were balanced in part by a major drop in the numbers getting unemployment payments. Mr Ahern said a buoyant economy and the resulting increases in the labour force had boosted PRSI income to the social insurance fund. "On a pre-Budget basis the social insurance fund is very close to being self-financing, with social insurance benefits nearly fully financed by PRSI contributions. This is a very satisfactory position with less funding from the Exchequer required to meet the shortfall in social welfare benefit costs," Mr Ahern said.
Total gross spending in 1998 is estimated at £4.7 billion which will mean that gross social welfare expenditure will increase by £210 million. Net spending by the Department - when PRSI receipts are deducted - will be £2.721 billion, 4.8 per cent up on 1997.
Mr Ahern said there were substantial reductions in the numbers on the live register with a figure of 245,000 underpinning the 1998 estimate. This represents a reduction of 10,000 on the 1997 forecast out-turn figure of 255,000. The 1998 Estimate represents the cost of maintaining existing levels of service.
Provision is made in the Estimates for weekly payments to over 900,000 people.