Increase in social welfare payments from New year's Day

Almost a million people will benefit directly from social welfare increases announced in the budget from New Year's Day.

Almost a million people will benefit directly from social welfare increases announced in the budget from New Year's Day.

The Minister for Social Affairs, Séamus Brennan said that in addition to the substantial increases in the weekly welfare entitlements, the benefits would also begin to impact from a €300 million package of social policy reform measures targeted at further increasing recognition of "carers, increasing incomes and supports for the most vulnerable older people, tackling child poverty, the further empowerment of lone parents, and the greater activation of back to work, training and education opportunities and choices".

A special €17 increase is being provided for 525,700 people in receipt of lower rate payments and qualified adult allowances for 120,600 people will increase by between €9.30 and €12.10 per week.

A minimum increase of €14 a week is being provided for some 180,000 contributory pensioners on full rates, with proportionate increases for a further 127,000 contributory pensioners on reduced rates.

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In addition, 96,800 non-contributory pensioners will benefit from an increase of €16 per week.

Minister Brennan said: "This Budget package of welfare entitlements and supports, at more than 1.12 billion, is the largest ever achieved and includes 800 million in substantial increases in allowances, pensions and entitlements and a further 300 million specifically for a range of social policy reform measures.

"The significant increases, averaging over 10.5% or almost four times the expected rate of inflation in 2006, will directly benefit more than 970,000 people who claim weekly social welfare payments and, when their dependants are included, a total of more than 1.5 million men, women and children," he said.