Jobless fall expected to cut benefit cost by 13%

The benefits of the booming economy are reflected in the social welfare Estimates, with a 13 per cent fall expected in the cost…

The benefits of the booming economy are reflected in the social welfare Estimates, with a 13 per cent fall expected in the cost of unemployment assistance before Budget increases are added in.

The Estimates show the expected cost of social welfare payments for the next year before any Budget increases are taken into account.

The Department of Social, Community and Family Affairs is now enjoying a double-pronged boost from the fall in unemployment and the strong economy. The fall in unemployment reduces the cost of unemployment assistance and benefit. At the same time the increase in the numbers of people at work brings in more in PRSI contributions.

The Estimates assume that unemployment assistance will cost £569 million next year, a 13 per cent fall on this year, before any Budget increases are added in.

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Total spending on means-tested schemes and on grants to various organisations is expected to amount to £2,763 million next year - a 3 per cent increase on expected spending for 1998.

The Estimates give no clue as to the expected pay-out in benefits and pensions funded by PRSI contributions, as these will not involve any contribution from the Exchequer and instead will be paid for out of the contributions paid by employees, employers and the self-employed.

In previous years the Department had to subsidise these payments but the amount of the subsidy has been falling sharply and this year, for the first time, no subsidy is expected to be necessary. The Department calculates that total social welfare spending, adding together PRSI-funded benefits and means-tested assistance, will amount to £4,951 million next year.

The estimates provide for an extra £100,000 for marriage and family counselling services, bringing total grants to £1.6 million.

Combat Poverty gets just 1 per cent more, at £2.3 million.

The National Social Service Board gets an extra 27 per cent, at £4.28 million, for its continuing programme of upgrading Citizens' Information Centres, its databases and computer systems.