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Dáil Éireann debate -
Thursday, 27 Apr 1989

Vol. 389 No. 3

Written Answers. - Social Welfare Benefits.

26.

asked the Minister for Social Welfare whether a person in receipt of a deserted wife's benefit, who by force of circumstances has to take up employment to maintain her family and home and pay PRSI at full rate, is entitled to payment of disability benefit while temporarily absent from work through illness.

A person in receipt of deserted wife's benefit who takes up employment retains her full entitlement to benefit regardless of her earnings. She would not be entitled to payment of disability benefit in addition to deserted wife's benefit. However, she is not liable for payment of her share of the PRSI contribution and if any such contributions are deducted from her earnings she would be entitled to have them refunded.

27.

asked the Minister for Social Welfare the plans his Department have to pay long-term benefits by way of pension book; when he intends to introduce any such new method of payment; and if he will make a statement on the matter.

I take it that the Deputy is referring to the provision made in the Social Welfare Act, 1988 for the introduction of a pre-retirement allowance which will remove the requirement for certain older unemployment assistance applicants to prove unemployment at their local employment exchange or signing centre.

The pre-retirement allowance is designed for people who have reached a certain age and who have been in receipt of unemployment assistance at the long-term rate. Many of these people regard themselves as semi-retired and no longer part of the labour force. At present, they are required to attend each week at their local office where they sign on and receive their unemployment payment in cash or, if they live more than six miles away, attend at a signing centre to have their declarations of unemployment certified by the Garda. This latter group receive their payment at their local post office. The new scheme will relieve the elderly unemployed of the need for weekly signing. In addition, all participants will receive payment at their local post office which will have obvious attractions for those who at present have to travel every week to the local employment exchange to collect their payment.

I recently introduced a number of modifications to the pre-retirement allowance in the Social Welfare Act, 1989. As a result the allowance will be payable where, for example, a recipient is ill, and a recipient will not need to be available for and genuinely seeking work.

The date of implementation of the pre-retirement allowance is to be prescribed by regulations which will be made as soon as the necessary administrative arrangements are in place. Although I am not in a position at present to say when that is likely to be, I can assure the Deputy that I am very anxious to bring the scheme into operation as soon as possible.

The method of payment proposed for pre-retirement allowance participants is by means of a book of payable orders encashable at a designated post office. I would like to mention that my Department is committed to making the widest choice of payment-methods as possible available to social welfare clients generally. The main focus at present is on improving the system of payment to the unemployed. Computerisation of the employment exchanges, which is being extended as quickly as possible, is opening up new possibilities on this front. I plan, for instance, to introduce a pilot system of payment to the unemployed by means of post drafts later this year. Later on I hope to see other systems such as electronic funds transfer being used to make these and other social welfare payments.

28.

asked the Minister for Social Welfare the plans, if any, he has to co-ordinate the provision of social welfare payments in order to harmonise the value and level of benefit for adults and their dependent children; and if he will make a statement on the matter.

Since the Government took office we have achieved considerable success in the harmonisation of social welfare payments. At the same time significant increases in payment have been given which more than maintained the level of all social welfare payments and which provided special increases for those on the lowest levels. For example, taking account of the increases which will come into effect next July, payments to the long term unemployed will have increased by over 24 per cent (18 per cent in real terms) since 1987.

As far as co-ordinating different rates of payment is concerned a number of major initiatives have been taken. Last year, for example, the number of child dependant allowance rates was streamlined and reduced from 36 to 20 rates. This work is being continued this year by the reduction from July to only 12 rates and the introduction of a minimum child dependant rate of £10 per week, which is equivalent to a 25 per cent increase in some rates. Another move towards streamlining in the area of payments for children is the extension of the payment of child dependant allowances to all long-term recipients for children up to the age of 19 who are in full-time education. This is a first step towards extending them to the age of 21.

Another major initiative which I have taken in this area is to abolish from next July the urban/rural differential in unemployment assistance payments. This means that a single person who was previously on the long-term rural rate of assistance will receive an increase of £6.30 per week or 15.5 per cent. A couple with four children will receive an increase of over 11 per cent. A couple with six children on the short-term rural rate of assistance or receiving supplementary welfare allowance will receive an increase of almost 13 per cent. From July the same rates of payment will apply to all men, women and dependent children for the first time in all parts of the country.

Significant progress on streamlining the adult dependant allowances has also been made, for example, the number of adult rates of unemployment payments will be reduced from five to two, a long-term and a short-term rate, from July. The adult dependent rates paid with invalidity pension are also being streamlined.

I have also introduced a new assistance scheme for widowers and deserted husbands with children, from next October. This is a significant harmonisation as this new scheme for men will be very much along the lines of schemes currently in operation for women.

Significant progress on harmonising the rates of payment has therefore been made. The achievements to date show the Government's continuing concern to improve the position of those dependent on social welfare and fulfil the commitments given in the Programme for National Recovery. It is the Government's intention to build on the considerable successes achieved in the social welfare area in recent years by continuing the ongoing review of the social welfare system and bringing forward proposals for its reform and development.

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