Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 20 May 1986

Vol. 366 No. 8

Ceisteanna—Questions Oral Answers - Old Age Pensioner's Rent Allowance.

10.

asked the Minister for Social Welfare the reason a rent allowance payable to an old age pensioner (details supplied) in Dublin 3 has been discontinued, in view of the fact that his only source of income is a pension which has not altered.

At a re-investigation of the claim of the person concerned in January 1986 it was found that his means, consisting of his contributory old age pension in respect of himself and his wife, his occupational pension and the yearly value of capital held by his wife, had increased since the previous investigation and exceeded the upper limit for entitlement to a rent allowance in his case. The upper limit in his case is £110.51 a week.

The rent allowance was accordingly terminated with effect from 16 February 1986.

An appeal was lodged against the decision but the appeals officer upheld the decision of the deciding officer. The person concerned was notified of the appeals officer's decision on 24 April 1986.

I do not normally ask questions of this nature in the House but unfortunately it is necessary on this occasion because of the unsatisfactory replies I have been receiving from the Minister's Department. Is the Minister aware that these two old age pensioners living alone have been paying an additional £19.20 per week since the decontrolling of rents? Until some months ago they had a rent allowance in the region of £6 per week but the Minister's Department apparently decided to do an assessment of income on a post office account belonging to one of these people. Is the Minister aware that the capital in that account is £2,100? What income has been assessed on that and how is income assessed on such a small capital sum?

In December 1985 the Deputy sought to have this case reviewed with a view to a possible increase in the rent allowance. Consequent on the representations of the Deputy a social welfare officer was asked for a report. That report, furnished in January 1986, disclosed that the means of the claimant had increased by £23.64 per week since the previous investigation. Details of income included the old age contributory pension, including an adult dependant allowance, a CIE pension and a small account which was assessed in January 1984 as giving an income of £3.10 per week. In January 1986 that income was assessed at £3.80 per week.

How was that assessed?

The tenants' weekly means were assessed at £116. The maximum allowance payable — the new rent of £20.76 less £3.80, came to £16.95. The reduction on the maximum allowance on account of means is calculated by taking £5 for the first £10 in excess of £90 and £16 for the remaining £16, which gave £21. That was more than the increase in the rent and consequently by the decision of the deciding officer the rent allowance was terminated with effect from 16 February 1986.

I wish to ask a short question in comparison to the long, bureaucratic reply from the Minister which really makes no sense whatever. It is a very simple question which should require a very simple reply. The Minister pointed out there has been an additional assessment of £3.80 per week for this old couple. That is in lieu of interest on Post Office savings of £2,000 and on an income of £3.80 a week additional which meant they were penalised to the extent that they lost their rent allowance which was more than twice the amount they gained in the interest. They were originally receiving £6.75 in rent allowance. That was discontinued completely when the Department assessed this couple's additional income of only £3.80. Is the Minister aware that the rent increase in this instance is £19.20 and we are talking in terms of an additional income of £3.80 in interest on a Post Office savings account? It appears that any old couple with a paltry sum are penalised by the Department and prevented from getting benefits they are entitled to.

As I stated, the total income had increased by £23.64 per week between the time of the previous assessment and the assessment made as a result of the Deputy's representations and the amount of the rent allowance which they were receiving from 7 July 1985 was £8.96 per week. Because of the increase of £23.64 in their income they lost the £8.96 rent allowance.

I have one further supplementary.

I am sorry, Deputy, I must move on. It is 3.30 and I am moving on to questions nominated for priority.

I shall be advising my constituents in future not to put any money in the Post Office.

I would like to correct the Deputy. The assessment of what was in the Post Office had a very minor effect on the loss of the allowance.

I am now moving to questions nominated for priority.

Top
Share