Benefits Benefit system simpler—Cullen

Press, 28 July 1989, Page 4

Benefits Benefit system simpler—Cullen

By

PETER LUKE

A universal benefit, set at the level of the present sickness benefit, will be introduced in April, 1991, says the Minister of Social Welfare, Dr Cullen. The so-called “generic benefit” will move away from the existing categorical benefit system of widows, domestic purposes, unemployment and other groups. It will be integrated with the new incapacity system which from the same date will replace both accident compensation and the sickness benefit. Dr Cullen said that the present system not only stigmatised some beneficiaries, but was also confusing. “Confusion and anomalies arise from the different criteria for eligibility applying to different benefit categories and variations in the levels of benefit; the new system will be simpler and fairer.” The rate of payment for a couple under the universal benefit would be set at the present sickness and invalids benefit. “This means that the couple rate for unemployed beneficiaries without children will be increased up to this level,” said Dr Cullen. The benefit would in future be adjusted in line with the consumers price index within the range of 65 per cent to 72.5 per cent of the average

weekly wage (after tax). The single rate of the universal benefit would be half this level, but the Government would look at .ways to meet the additional costs of single benefit recipients who lived alone. Most single benefits are now set at a proportion slightly higher than 50 per

cent of married benefits. Dr Cullen emphasised that the new system would be directed to meeting needs. The Government has emphasised that the new benefit system will be fiscally neutral, meaning that it will not cost any more than the benefits it replaces.