The Government must increase social welfare payments by far more than inflation despite the downturn in the country's economic fortunes, Fine Gael has proposed in a pre-Budget submission.
Old age pensions should rise to £116, the widow and widowers' pension should increase to £100, while unemployment assistance and benefit should stand at £94 following next month's Budget, said Fine Gael TD, Mr Brian Hayes.
"This year's Budget provides the Government with its last opportunity to spread the wealth of the Celtic tiger economy," said the Dublin West TD, adding that Ireland still has one of the EU's worst poverty records.
Fine Gael will abide by the majority report of the PPF benchmarking and indexation group, which recommended that social welfare rates should reach 27 per cent of average industrial salaries by 2007.
The recommendation is understood to be opposed by both the Department of Finance and the Department of Enterprise, Trade and Employment. The Minister for Social, Community and Family Affairs, Mr Ahern, last week refused to reveal his attitude towards the proposal when he faced questions in the Dβil.
