Government to row back on Savage 16 cuts, says Brennan

THE Government is to do a U-turn on some of the Savage 16 welfare cuts in next month’s Budget.

Social Affairs Minister Seamus Brennan said some of the changes would be “radical” and some would be “substantial”.

A number would require smaller amendments and some would just require clarification of what was intended.

The need for clarification was because, in a few cases, they were misunderstood as measures trying to hinder people rather than help them, he said.

The minister had been determined to reverse the controversial cuts if he could prove they were affecting people badly.

He had asked his department to review every one of the social welfare adjustments in the last budget and had promised if there were cases of hardship in those adjustments he would reverse them.

Mr Brennan said spending on social welfare would increase to almost €11.4 billion - even before announcements in the budget were taken into account.

Asked to put a figure on the size of the increase he was looking for in the Budget, Mr Brennan said the commitments given in the Programme for Government totalled €2.5 billion.

That was on top of €11.4bn in the Estimates.

“These are commitments I am determined to deliver on,” he said.

If that was evenly allocated over three years he would be looking for more than €800m in the December Budget, but the minister said he was not prepared to put a figure on it.

At the heart of his discussions with Finance Minister Brian Cowen and Taoiseach Bertie Ahern was how they broke up that €2.5bn over the three-year period, he said.

“Last year’s social spending after the budget was €630m. Obviously, I need a substantial increase on that,” he said.

“That €2.5bn is publicly committed. If we choose to make other adjustments or improvements, which haven’t even been discussed yet, we will be going beyond that figure substantially,” he added.

Mr Brennan also hinted last year’s cut in funding for the Money, Advice and Budgeting Service (MABS) would be reversed in the budget.

Mr Brennan also said he was particularly committed to carers.

There are 22,000 people getting carers’ allowances and there was a need to recognise a lot of people outside that group, like widows and lone parents who provide full-time care. An area he is closely looking at is respite care grants.

An annual grant is provided for people who want a break from caring for their loved ones. The Oireachtas All-party Committee on Social Affairs had also recommended that something be done in this area.

Social Welfare

Age Contributory and Retirement Pensions - up €57 million.

Child Benefit - up almost €50m.

Carer’s allowance - up just over €3m.

Disability Allowance and invalidity Pensions - up almost €55m.

Around 973,000 people are expected to claim weekly social welfare payments next year. Almost 1.5 million will benefit.