Minister confident of Budget boost in old-age pension

The Minister for Social Welfare, Mr Ahern, said yesterday he was confident that old-age pensions would be increased in next month…

The Minister for Social Welfare, Mr Ahern, said yesterday he was confident that old-age pensions would be increased in next month's Budget and could soon reach £100 per week.

Commenting on the Estimates, the Minister said child benefits were expected to increase by 13 per cent next year.

He said there were wide opinions about the best form of payment to parents. However, his preference was for child benefit. "I think a universal payment is best," he said, and added: "Taxing child benefit is definitely out."

The Estimates have provided for additional spending of about £240 million on social welfare next year, but Mr Ahern said he was confident the Budget would provide further money.

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The estimate of £5.57 billion for 2001 consists of £2.95 billion provided by the Exchequer and £2.58 billion to be provided by the Social Insurance Fund which is financed in full by PRSI contributions paid by employers, employees and self-employed.

The Exchequer figure represents an increase of £135 million, or 5 per cent, on this year, while the Social Insurance Fund figure represents a 4 per cent increase of £104 million.

The 2001 Estimates include the full-year cost of improvements announced in Budget 2000 at the end of last year.

These include increases in weekly rates of payments, in monthly rates of child benefit, family income supplement, reform of the capital assessment for means-test purposes, extension of the free schemes, enhancements in the employment support services and a pension for people insured before 1953.

The Minister said he expected the old-age pension would be increased after the Budget. The numbers claiming non-contributory pensions is decreasing as more people are insured.

However, the Estimates show the number receiving contributory, retirement and old-age non-contributory pensions is expected to increase by 6,700 to 256,900.

The live register is expected to decrease by 21,000 to 136,000 next year. The estimated out-turn for this year, as an average, is 157,000.

One of the larger increases in the Estimates is a 99 per cent rise in consultancy services from £8.2 million this year to £16.4 million next year.

The Minister said this was to cover the Reach and General Registry office projects which were being initiated in the Department.