MOST RECIPIENTS of social welfare payments under the age of 66 face a cut of about 4.1 per cent following yesterday’s Budget.
Minister for Finance Brian Lenihan said welfare rates had been excluded from cuts in the supplementary budget in April, but he had signalled then that payments might be reduced if the cost of living fell.
“As the House will know the overall cost of living has fallen by about 6.5 per cent over the past 12 months, including very sharp declines in the prices of the basic necessities of food, clothing and accommodation,” he said.
As a result, the changes being implemented included a cut in the jobseeker’s allowance from €204.30 to €196 a week. The same cut would apply in the case of illness, and injury benefits, farm assist and pre-retirement payments and the supplementary welfare allowance.
Mr Lenihan said, however, that the Government recognised that consumer prices had not declined at the same rate for all groups.
“Older people have experienced by far the smallest reduction in living costs. For that reason and in recognition of the contribution they have made to the State, the Government has decided to leave the State pension unchanged,” he said.
Older people will also continue to receive free travel, free TV licence and free electricity or gas allowance. Other allowances such as the living-alone allowance, over-80 allowance and fuel allowances will not change.
The cuts announced yesterday will save the Department of Social and Family Affairs €760 million next year. Unlike other departments, however, its overall spending will go up due to the increase in the number of claimants arising from the downturn.
However, among a wide range of cuts, the widow/widower’s contributory pension and deserted wife’s benefit falls from €209.80 to €201.50. Non-contributory payments in those categories as well as the prisoner’s wife’s allowance go down from €204.30 to €196.
Carer’s benefit drops from €221.20 to € 213 and carer’s allowance goes from €220.50 to €212. Disablement pension goes down from €235.40 to €227 and disability allowance falls from €204.30 to €196.
Payments for dependent adult relatives – the qualified adult allowance – are reduced, where the person in question is under 66. In most cases the drop is from €135.60 to €130.10.
Child benefit is to be reduced by €16 per month. The current figure of €166 for the first and second child will go down to €150.
The payment of €203 for the third and subsequent children falls to €187. However, families dependent on social welfare or in receipt of Family Income Supplement will be fully compensated.
Jobseeker’s allowance or supplementary welfare allowance paid to new claimants aged 20 and 21 is being reduced from €204.30 to €100 per week from January. Last April, a similar cut was imposed on the 18-19 age group.
Payments in these categories to new claimants aged 22-24 years are being reduced to €150 per week. However, the full rate will be paid to those under 25 years if they participate in an approved training or education course and claimants with dependent children will not be affected. Dental and optical benefit will be restricted next year to free examinations. Other payments towards the cost of dental scaling, fillings, extractions and dentures will cease, as will the cost of glasses, replacement lenses and contact lenses.
Minister for Social and Family Affairs Mary Hanafin said at a news conference that the forthcoming Social Welfare Bill would include anti-fraud measures such as empowering Social Welfare inspectors to stop vehicles and question the occupants without a Garda presence and to obtain details from financial institutions of specific account withdrawals.