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Dáil Éireann debate -
Thursday, 20 Feb 2003

Vol. 561 No. 6

Written Answers - Social Welfare Payments.

Bernard J. Durkan

Question:

139 Mr. Durkan asked the Minister for Social and Family Affairs if her attention has been drawn to the extent to which cost of living increases have eroded pension and other social welfare payments; the measures planned to address the issue; and if she will make a statement on the matter. [5119/03]

One of the key objectives of the 2003 social welfare package was to protect or enhance the value of all rates of payment in relative terms. The budget made provision for increases in the main personal rates of weekly payments ranging from 5.1% to 7.6% as well as additional increases, also ranging from 5.1% to 7.6%, in the weekly rate of qualified adult allowances.

Budget 2003 projected that prices will increase by an average of 4.8% in 2003 as a whole. In this regard, I welcome the recent fall in the annual rate of inflation, from 5% to 4.8%, as outlined in the consumer price index report for January last.

In addition, budget 2003 also provided for additional increases to those aged 66 or over, in particular those on old age pensions and widows payments; increased or maintained the real value of all qualified adult rates of payment and ensured that they did not fall as a proportion of the associated personal rate; and made significant progress in our programme of increases in the level of child benefit.

Social welfare spending rose by over €3.5 billion between 1997 and 2002, a level of increase significantly in excess of the level of inflation. An additional €833 million in social welfare spending is provided for during this year, and this will bring the projected level of annual spending to over €10 billion for the first time. At a time of great economic uncertainty, this emphasises the Government's commitment to protecting those at highest risk. My colleagues and I are committed to safeguarding the position of all social welfare recipients and I look forward to making further progress, in the years ahead, on the achievement of our social inclusion commitments.

Question No. 140 answered with Question No. 47.

Bernard J. Durkan

Question:

141 Mr. Durkan asked the Minister for Social and Family Affairs the average payment made under the farm assist scheme; and if she will make a statement on the matter. [5121/03]

The farm assist scheme, which introduced special arrangements for farmers on low incomes, was provided for in the Social Welfare Act 1999 and came into operation with effect from 7 April 1999.

The amount paid to each farmer is dependent on a number of factors, for example, family size, whether the spouse-partner is working and any means assessed from all sources. At week ending 7 February 2003, the average weekly payment was €139.18.

The following is a breakdown of the number of farmers receiving farm assist under a range of payment bands.

Weekly payment €

Number of Customers

Under 50.00

405

50.00 – 99.00

2,051

100.00 – 149.00

2,982

150.00 – 199.00

1,345

200.00 – 249.00

1,210

250.00 – 299.00

472

Over 300.00

82

Total:8,547
The scheme has brought about a worthwhile improvement for low income farmers and particularly for those with children. The scheme clearly makes a valuable contribution to supporting those who are at the lower end of the farm income spectrum.

Bernard J. Durkan

Question:

142 Mr. Durkan asked the Minister for Social and Family Affairs the improvements proposed in relation to the farm assist scheme; and if she will make a statement on the matter. [5122/03]

The farm assist scheme was introduced in 1999 as an income support scheme for low income farmers. It is a means tested scheme with a more generous method of assessment, including disregards in respect of qualified children, than had applied under the previous smallholders' unemployment assistance scheme.

The scheme was further improved in two ways from 2000. The child-related income disregards were increased by €126.97, £100, bringing them to €253.95, £200, in respect of each of the first two children and to €380.92, £300, in respect of the third and subsequent children; and the means assessment rate was reduced from 80% to 70%, thereby increasing the income from self-employment which a farm assist claimant can keep before the level of payment is reduced. Farm assist recipients also benefited from the improved capital assessment regime which was also introduced in 2000.

I have no proposals to make further changes to the scheme at this time.

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