Dáil Éireann debate -
Wednesday, 2 Feb 2000

Vol. 513 No. 4

Written Answers. - Social Welfare Benefits.

Willie Penrose

Question:

189 Mr. Penrose asked the Minister for Social, Community and Family Affairs if a person participating in a community employment scheme and in receipt of a loan parent's allowance is entitled to a rent allowance from the Midland Health Board to enable her to secure accommodation; and if he will make a statement on the matter. [2736/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of rent or mortgage interest supplement to any person in the State whose means are insufficient to meet their needs. The scheme is administered on behalf of my Department by the health boards and my Department has no function in deciding entitlement in individual cases.

Rent and mortgage interest supplements are normally calculated to ensure that the person, after the payment of rent, has an income equal to the SWA basic weekly payment rate, less £6. This £6 represents the minimum contribution which recipients are required to pay from their own resources.

SWA is subject to a means test and applicants are required to contribute any assessable means in excess of the appropriate basic supplementary welfare allowance rate towards their rentmortgage interest supplement.

SWA is not ordinarily payable to people in fulltime employment. However, special arrangements were introduced some years ago to enable people making the transition from welfare to work to retain rent or mortgage interest supplement, subject to certain conditions.

Under the rules of the community employment – CE – scheme participants are paid a set weekly wage which is generally greater than the equivalent social welfare payment for a person in similar household circumstances. In the case of people who were previously unemployed, this weekly wage is paid instead of unemployment assistance. In the case of lone parents, the weekly wage is paid in addition to the one-parent family payment – OFP – in recognition of the fact that lone parents need additional supports. These arrangements take into account the special needs and requirements of lone parents raising children and maintaining households on their own.

In addition, CE participants may retain entitlement to their existing rent-mortgage interest supplements, subject to certain conditions. Participants must contribute a standard minimum contribution of £7.50 per week towards their accommodation costs, their gross household income must not exceed £250 per week and their rent-mortgage interest supplementation is subject to a maximum payment of £250 per month.

Furthermore, a CE participant who was not in private rented accommodation prior to starting on a CE scheme can apply for a rent supplement and will be assessed under the CE conditions outlined above.

My Department is aware that these arrangements are no longer fully adequate for some households, particularly for families with dependent children, given the large increases in housing costs in recent years. The conditions for retention of rent and mortgage interest supplements, including the income limits and the ceilings on the amounts payable, were reviewed in consultation with the social partners under Partnership 2000. Following those discussions, the Deputy will be aware that I announced substantial changes to the conditions for the retention of rent-mortgage interest supplement by participants in the employment programme schemes in the recent budget. These new measures, which are effective from 6 April 2000, will mean an improvement in the position of participants in all employment schemes, including the CE scheme.

Specifically, family income supplement and back to work allowance payments will be disregarded for the purposes of the weekly £250 gross household income. In addition the £250 monthly rent supplement limit will be abolished with effect from 6 April 2000 and the supplement will be tapered out over four years. Some 75% of the previous rate entitlement will be paid in year one, 50% in year two, 25% in year three, and 25% in year four.

Participants must continue to contribute a standard minimum contribution of £7.50 per week towards their accommodation costs.

However, a CE participant who was not in private rented accommodation prior to starting on a CE scheme can apply for a rent supplement and will be assessed under normal SWA rules.

These conditions apply to all schemes under the Government's employment programme. In the case of existing participants, the health boards will review their cases and the participant can choose to be assessed under either the existing arrangements or the new arrangements effective from 6 April next, whichever is more beneficial to them.

Denis Naughten

Question:

190 Mr. Naughten asked the Minister for Social, Community and Family Affairs the plans, if any, he, has to remove the ineligibility clause in the carer's allowance for a widowed parent receiving non-contributory pension and taking care of an intellectually disabled child in view of the fact that these parents are saving the State a large amount of money by not seeking full-time residential care for these children; and if he will make a statement on the matter. [2764/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The primary objective of the social welfare system is to provide income support and, as a general rule, only one social welfare payment is payable to an individual.

The review of the carer's allowance, which was published in October 1998, examined the issue of paying the carer's allowance in conjunction with another social welfare payment. As indicated, the practice of paying only one allowance is a feature, with very few exceptions, of all social welfare

payments and is designed to ensure that limited resources are not used to make two income support payments to any one individual. The review concluded that this practice should continue. The review did however propose the introduction of a continual care payment in certain circumstances in recognition of the caring provided.

Where a person in receipt of a social welfare payment, for example, a widow's pension applies for a carer's allowance, he or she will receive the higher payment and there is no loss of income.

The review of the carer's allowance noted that there is an imbalance between the amount of expenditure on institutional care compared with the amount spent on community care. However,

the evidence put forward in the review suggests that community care can be as costly, if not more costly, than institutional care where a proper and adequate range of services is provided. This is because the medical professionals involved are mainly dealing with people on a one-to-one basis, and it is also the case that many people who are being cared for at home also spend a certain amount of time in hospitals.

Government policy is strongly in favour of supporting care in the community and enabling people to remain in their own homes for as long as possible. However, the State cannot and would not wish to replace the personal support and care provided within the family and the community. Therefore, its primary role is to provide adequate support for carers and for those for whom they are caring, to enable them to remain in their own communities for as long as possible.