Expenditure on unemployment payments is expected to increase by up to 18 per cent next year, the Minister for Social, Community and Family Affairs, Mr Ahern, said yesterday.
He was speaking following the publication of his Department's spending estimates for next year. These will allow for an 18 per cent increase in numbers claiming unemployment benefit, reflecting the downturn in the economy. He had budgeted for 155,000 people singing on next year. The projection for this year was 133,000 but it ended up being 142,000, he said.
In addition, the amount set aside for statutory redundancy and insolvency payments has increased by 82 per cent, to over €50 million (£40 million). Much of this is to meet a backlog of payments. Overall, the estimates have provided for an 8 per cent increase in social welfare spending next year.