Budget to increase child benefits and pensions

Social welfare: Next month's Budget will focus on increasing pensions, child benefit payments and social welfare rates, Minister…

Social welfare: Next month's Budget will focus on increasing pensions, child benefit payments and social welfare rates, Minister for Social and Family Affairs Séamus Brennan signalled yesterday.

He announced that spending on social welfare would increase next year by more than €450 million to at least €14 billion. However, the figures do not include likely increases in pensions, social welfare rates and child benefit which will be announced in next month's Budget.

The increases are still the subject of discussions between Government officials.

Last year the Estimates figure was boosted by an additional €1 billion in the budget, which led to a record high combined spend of €14.6 billion last year.

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The Minister said he was hopeful that a substantial sum would be secured in the coming days to provide for further welfare increases next year.

Among the likely increases will be a rise in the State pension to €200 a week, which has been a long-standing pledge of the Government since 2002.

Other areas expected to be the subject of Budget Day announcements include an improved carer's allowance, an increase in the jobseeker's allowance and a rise in child benefit.

Mr Brennan said he and his officials were developing proposals for the Budget and he was confident that a final outcome would demonstrate the Government's commitment to those most in need of welfare support.

Yesterday's Estimates show that pensions will account for the largest share of spending (25 per cent). This is followed by illness, disability or caring payments (17 per cent), child-related payments (17 per cent), lone-parent and widow/widower payments (15 per cent) and jobseeker's supports (9 per cent).

A more detailed breakdown of next year's spending shows there will be a 5 per cent increase in spending on child benefit. This is due mainly to a projected increase in the number of eligible children to 1.1 million.

The amount spent on the jobseeker's allowance will increase by 8 per cent, due chiefly to a projected increase in the average number of recipients.

The State will spend 13 per cent more on the family income supplement.

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent