Children, carers and elderly to share €15bn package

Welfare: More than 400,000 older people will benefit from pension increases which will raise the weekly non-contributory pension…

Welfare:More than 400,000 older people will benefit from pension increases which will raise the weekly non-contributory pension to €200 and the contributory pension to €209, writes Carl O'Brien, Social Affairs Correspondent

The increases, which exceed the Government's pledges in its programme for government, are part of a €15 billion welfare package which aims to alleviate child poverty, support carers and increase pensions.

Minister for Social Affairs Séamus Brennan also announced plans to increase the qualified adult's allowance - sometimes known as the woman's pension - to the same rate as the basic State pension over the next three years. It will increase by €23 this year.

Mr Brennan said the move would benefit women in receipt of the allowance by providing for it to be paid directly to them, ensuring they are no longer treated as dependants.

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The amount a person on a non-contributory pension will be able to earn before it affects their pension payment will be doubled to €200 a week. There will also be an automatic entitlement to a free travel companion pass for older people aged 66 to 74 who are medically unfit to travel unaccompanied.

Social welfare rates in general will receive a boost from January, with the lowest rate increasing by €20. This brings the lowest adult rate to €185.80 a week, meeting the Government's commitment to the social partners. There are also significant changes for carers, with the ending of the rule which prevented a carer on social welfare from claiming carer's benefit.

From February, a welfare recipient can claim a half-rate carer's allowance, a measure which will boost the income of 18,000 people by up to €109 a week.

Mr Brennan said: "Under this new dual-payment system, we will be starting to recognise the carer's allowance less as a welfare payment and more as a support for caring duties."

The carer's allowance itself increases by €18 to €218 a week, while the means test for the allowance has been eased. The income disregard increases by €30 to €320 for a single person and by €60 to €640 for a couple.

The respite care grant will also increase by €300 to €1,500, which will benefit almost 40,000 carers.

Fuel and energy reliefs will be increased, with the fuel allowance rising by €4 per week to €18.

The income threshold for entitlement to the fuel allowances will be increased from €51 per week in excess of the State Pension (Contributory) rate to €100 per week in excess of that rate from January 2007.

In the area of maternity benefit, the weekly earnings threshold will be increased to €350, with a new payment rate of €280 per week for the maternity and adoptive benefit.

Bereavement supports will also receive a boost. The widowed parent grant increases by €1,300 to €4,000, while the bereavement grant increases by €215 to €850.

Most pensions and welfare benefits are due to increase from January, although widows, carers and the disabled will receive back-dated payments in February.

• For the full list of welfare changes, visit www.welfare.ie