There will be some delay in the implementation of social welfare increases after the next Budget because of the Government decision to align the tax and calendar year from January 1st in 2002, the Dail was told.

The Minister for Social, Community and Family Affairs, Mr Ahern, said that for the first time social welfare increases would come into effect at the same time as the changes in the income tax provisions announced in the Budget.

However, because of the shortened lead-up time to the increases, there would be some delay in their implementation. Mr Ahern, stressed however that any delayed increases would be fully paid after the Euro changeover which also takes place in January next year.

He said that during the euro changeover, the amounts payable to social welfare recipients would be "rounded up to the benefit of customers". He was responding to Mr Tommy Broughan (Lab, Dublin North East) who said there was deep and widespread concern among pensioners and social welfare recipients about being "ripped off" during the euro changeover similar to what he said happened during the decimalisation of the Irish currency.

Mr Ahern pointed out that the Government had decided that social welfare payments would apply from January 2002, following the next budget, which is expected in October this year. This is to allow for the alignment of tax and calendar years.

Mr Ahern said there would be a gain to recipients of £85 million because of the earlier operative date.