Old age pension raised to €200

Budget 2007: The lowest rates for social welfare payments have been increased by €20 per week and the Government met its commitment…

Budget 2007:The lowest rates for social welfare payments have been increased by €20 per week and the Government met its commitment to raising the old-age pension to €200 per week.

This brings the lowest adult social welfare payment to €185.80 per week.

In total, increases in social welfare payments will cost the State €973 million in a full year, the Minister for Finance said.

Mr Cowen told the Dáil he would increase the contributory old-age pension by €16 per week to €209.30 and the non-contributory pension by €18 to €200.

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Child benefit has been increased by €10 per child per month to €160.

Mr Cowen said he wanted to target additional supports at those most in need. He had therefore agreed with the Minister for Social and Family Affairs to increase the back-to-school allowance and also to introduce a new flat-rate child dependant allowance of €22 per child, per week. The cost of these measures would be €244 million in a full year.

The free fuel allowance increases to €18 per week the income threshold for eligibility goes up to €100 per week.

Mr Cowen said that for people of working age, the reckonable earnings threshold for maternity benefit will be increased to €350.

To take account of women who, because of their commitment to home-making, may not have a record of social insurance contribution,

Mr Cowen raised rate for the qualified adult payment to €173 per week. The Minister also announced an increase of €300 in the annual respite care grant, bringing it to €1,500.

The back-to-school footwear and clothing allowance has been increased to €180 and €285. A half-rate carers' allowance will now be paid to certain recipients of other social welfare payments, the Minister announced.

Mr Cowen said the details of a wide range of measures would be announced separately by Minister for Social and Family Affairs Seamus Brennan.