Child benefit payments will favour 1m children

Significant increases in child benefit and pensions were among the €1,079 million (£850 million) social welfare measures in the…

Significant increases in child benefit and pensions were among the €1,079 million (£850 million) social welfare measures in the Budget.

Social welfare claimants will receive the increases from the first week of January, rather than later in the year, which has been the norm to date. Monthly child benefit will be increased by £25 for the first and second children to £92.62, and by £30 for third and subsequent children to £116.

Over one million children will benefit from these increases, which will be paid from next April, three months earlier than last year.

Pensioners will receive an extra £10 a week on the maximum personal rate, with a £20 going to pensioner couples aged 66 and over. There is a £12 special increase a week for widows and widowers aged 66 and over.

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The personal rate of Old-Age Contributory Pension will be increased from £106 to £116 a week. A couple, both aged over 66, on Old-Age Contributory Pension will receive £205.60 a week instead of £185.60 at present.

Widows' Contributory Pension will rise by £12, to £114 a week. The Non-Contributory Old-Age Pension will increase from £95.50 to £105.50.

Carers will receive increases in the Respite Care Grant to £500, and £1,000 for those taking care of more than one person.

People on the lowest social welfare rate such as Supplementary Welfare Allowance and short-term Unemployment Assistance will receive a weekly increase of £9.50. There will be an £8 a week increase in other personal rates.

The Minister for Social, Community and Family Affairs, Mr Dermot Ahern, said he was particularly happy that he had succeeded in getting a substantial increase in child benefit for the second year in a row. The increase is part of a three-year commitment by the Government to bring the lower rate to £117 a month by next year and the higher rate to £146. Mr Ahern said that given the current climate it had been "a struggle" to maintain the payment this year. The child benefit increases account for £326 million of the overall £850 million social welfare package.

Mr Ahern said: "The Government took the view that in this contracting period we should look after the less well off, old-age pensioners and disabled people and put investment into families."

Other changes include a £2 a week increase in winter fuel allowance for 29 weeks from October to mid-April. This is the first fuel allowance increase since 1985.

A new Household Benefits scheme is being introduced to streamline the existing electricity, gas and telephone allowance and free TV licence into one combined package. The move will ensure than anyone who qualifies for one benefit will get all of them.

There are also increases in back-to-school clothing and footwear allowances.

The improvements mean that social welfare expenditure in 2002 will be some two-thirds higher than in 1997.

Mr McCreevy also announced the allocation of £1.28 billion, for social inclusion measures across all Departments.

While all social welfare weekly increases will be paid from 1st January, recipients will not receive the money from that date for administrative reasons. Some benefit increases will instead be paid in lump sums in February.

The Department of Social, Community and Family Affairs will operate a Budget freephone service from 10 a.m. to 5 p.m. tomorrow and Friday. Tel: 1800 690590.