INOU says £8 rise in benefit for unemployed `minimal'

The Irish National Organisation of the Unemployed has described the £8 rise in unemployment benefit announced in the Budget as "the absolute minimum" which could have been made "without provoking a crisis in social partnership".

The group warned that unless the Government's anti-inflationary measures delivered as promised, the "minimal" increase would be wiped out by price rises.

An increase in the weekly benefit to £88.50 was one of a range of measures announced in the social welfare area.

As well as increasing pensions and child benefit, the Government has committed extra funds to foster care, people with disabilities and carers.

The social welfare package totals £850 million, double last year's figure. It comes on top of the Department of Social, Community and Family Affairs' estimated spend for next year of £5.5 billion.

The payment date for social welfare increases is being brought forward to coincide with the beginning of the tax year. The 2001 increases will be paid in April, four weeks earlier than last year. In 2002 the increases will apply from January, when the tax and calendar years will be aligned.

Under the carers' package, more than 5,000 extra people are to qualify for the carers' allowance and almost 3,000 existing carers should benefit from improvements in the means test. Respite grants for carers have been increased from £300 to £400, with an £800 grant available for carers taking care of two or more people.

The Carers' Association criticised the package, however. Its director, Mr Eddie Collins-Hughes, said it was "incredible" that with 120,000 family carers in "desperate circumstances" only 5,000 extra people will get some sort of carers' allowance.

The disability allowance has been increased by £8 for single people and £15 for couples. In the same area, as a special measure, a limitation whereby a reduced-rate disability allowance is paid where a person's partner is in receipt of another social welfare payment will be removed.

On foster care, an additional £9 million has been allocated in the context of restructuring the existing payments and support systems. The capital acquisitions tax rules are also being amended to give foster children similar rights to other children.

On homelessness, the Government said it would double capital funding to £40 million over the next five years to provide additional emergency accommodation. An additional £6 million a year is being made available to local authorities to fund increased subventions for hostel accommodation.

The housing agency Threshold welcomed the proposals but, in a statement, said "the real issue is not funding but the capacity of local authorities to deliver on these expanded targets for social housing in the National Development Plan. Evidence to date suggests that many local authorities are already behind in meeting their social housing targets for this year."

On drugs, an additional £2 million has been allocated to the National Drugs Strategy, bringing the budget for the scheme to £17 million.