Record welfare spend to combat poverty

FURTHER to your article headlined ‘Almost 20% at risk of poverty’ (Irish Examiner, December 13), the EU survey on income and living conditions in Ireland (EU-SILC) for 2004 found that between 2001 and 2005 spending on social welfare alone increased from €7.8 billion to €12.5 billion.

This substantial investment has resulted in reducing consistent poverty from 8.8% to 6.8% in 2003. Indeed, welfare expenditure in 2006 will double that spent in 2000.

Of course, poverty traps continue to exist in the welfare system, but we are making considerable progress. The recent Budget committed to an all-time high spend of €13.5 billion on welfare supports and entitlements and included increases of up to €17 per week.

In addition, €300 million has been provided specifically for a range of social policy reforms targeted at removing obstacles to employment and creating the changes and opportunities that will bring people from welfare dependency to financial independence.

Our progress in this regard was recognised in a post-Budget analysis by the ESRI, which indicated that this was the most progressive Budget package for many years, with poorer households doing proportionately better than rich ones.

John Dennehy TD

Dáil Éireann

Leinster House

Kildare Street

Dublin 2