Social Welfare from 1952
1952-65
The social welfare legislation was consolidated and reformed in 1952. There were incremental developments from then onwards. There was severe immigration, employment and immigration in the 1950s.
1951 saw the introduction of a contributory old age pension. Children’s allowance was extended to the first child in 1963. The second Program for Economic Expansion 1963 sought to improve social welfare services in line with improvements in the national income and prosperity,
Expenditure on social welfare increased only gradually from 5.9 to 6.2 per cent in the decade 1965. However, this covered years during which real GDP fell.
The contributory old age pension marked an increase in social insurance expenditure from 28 per cent to 46 per cent of expenditure. State funding decreased from 76 percent to 68 percent of the cost in the period with increases in employers’ and employees’ contributions.
1965-1975
The economy improved significantly from the early 1960s until the mid-1970s. The third Program of Economic and Social Development promised significant reforms, including the introduction of pay-related benefits, retirement and invalidity pensions.
Workmen’s compensation was abolished in 1966 and replaced with a social welfare occupational injury scheme.
A retirement pension payable at 65 years was introduced in 1970. Invalidity pensions for permanent incapacity or long-term incapacity and a death grant were also introduced in 1970. Deserted wife’s benefit was introduced in 1973.
In 1974, social insurance was extended to cover all employees, except part-time employees. The insurable workforce increased from 73 percent to 85 percent.
The age for the availability of the old age pension was reduced from 70 to 66 years between 1973 and 1977. Pay-related benefits were introduced in 1974 by way of additions to unemployment and disability benefits.
The Commission on the Status of Women recommended a number of means-tested payments.
1975-1980
Supplementary welfare was established in 1975 and finally removed the last vestiges of the poor law system. It supplemented existing payments. It left decisions at a local level and on a largely discretionary basis.
Some self-employed persons were entitled to claim unemployment assistance if their incomes were below certain levels. In rural areas, unemployment assistance was determined by rateable valuation, which was hopelessly anomalous and outdated.
Persons who occupied land above a certain eligible valuation were disqualified from unemployment assistance regardless of means from March to October. Men without dependents in rural areas were disqualified from June to October on the assumption that farm work would be available.
The so-called smallholder’s assistance was paid to over 30,000 people in the mid-1970s.
In 1979, contributions were amended from a flat rate system to pay related social insurance.
1980-1985
By 1980, social welfare expenditure had increased to 10.7 percent of GDP. Unemployment rose sharply in the 1980s during a prolonged recession. By the mid-1980s, social welfare reached 13 percent of GDP, declining again to 10 percent by 1996.
By that stage, the State financed 57 per cent of the total expenditure, with 30 per cent coming from employers, 10 per cent from employees and 3 per cent from self-employed. The State’s contribution to the social insurance fund dropped from a third in 1985 to five per cent in 1996. By 1996, the expenditure on social insurance and social assistance were virtually identical, with the balance referable to child benefit.
The special arrangements for unemployment assistance for farmers were abolished in 1983. A significant number of smallholders continued to be entitled to unemployment assistance.
Family income supplemental was introduced in 1984.
1986-1990
The Commission on Social Welfare 1986 undertook the first comprehensive review of the Social Welfare Code since the 1949 White Paper. It recommended the consolidation and expansion of existing schemes, increased rates of benefit, improved the child support scheme, and increased the social insurance base. Due to financial constraints, amongst other things, the Commission’s recommendations were not implemented.
In 1986 supplementary welfare allowance was transferred from part local authority funding to complete central funding.
Social insurance was extended to self-employed persons in 1988. Pay-related benefits were reduced and ultimately abolished in 1994 with a view to making social insurance self-sustaining.
Means-tested, disabled person’s maintenance allowances were transferred from the Department of Health to the Department of Social Welfare and became disability allowances.
1990-1995
Social insurance was extended to part-time workers in 1991. A limited range of benefits was only provided to them. It was extended to all workers earning more than £25 per week.
Pre-retirement allowance was introduced. The widower’s pension was extended to widowers in 1994. Loan parent’s schemes were expanded to one parent family schemes, replacing deserted wife’s benefit. A Carers Allowance was introduced.
Child allowances were removed from the tax system. Children’s allowance was renamed child benefit. The idea was that child benefit would be increased and be taxable. However, child benefit was not increased significantly. The 1995 “Rainbow” government increased child benefit significantly.
EU equality requirements had a very significant effect on the social welfare code. Many of the Irish schemes were based on gender discrimination in particular on the assumed non-participation of married women within the workforce. The delay in implementation of a directive during which married women received lower rates of benefit than their male counterparts led to equality litigation and pay-outs of over £60 million in arrears of benefit.
1995-2000
Some significant rates increases in social welfare rates were made through the 1990s and 2000s under National Programs. The period from 1995 to 2008 saw significant economic growth and a fall in unemployment. Participation in the workforce increased enormously. The workforce increased to over 2 million.
The Employment Action Plan 1998 required persons who were unemployed for more than a certain period to be referred to the state employment agency for labour market activation.
The Carers Allowance was broadened, and after 1997, there was a significant increase in take-up. The Health Strategy in 2001 proposed a new homecare subvention.