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Dáil Éireann debate -
Wednesday, 5 Jun 1991

Vol. 409 No. 4

Written Answers. - Social Welfare Benefits.

Paul Connaughton

Question:

10 Mr. Connaughton asked the Minister for Social Welfare if his attention has been drawn to the anger and frustration felt by many social welfare recipients when on receipt of their new books this month they are being deprived of the 4 per cent increase in social welfare allowances announced in the budget; if he will outline the categories of social welfare recipients not entitled to the 4 per cent increase; and the reasons they are being discriminated against.

Significant progress has been made in recent budgets to improve the position of low income families dependent on social welfare payments. This year's budget was no exception. The main underlying philosophy is the commitment in the Programme for Economic and Social Progress that the Government will move to the priority rates recommended by the Commission on Social Welfare by 1993, which will involve an estimated additional expenditure of £65 million. Thereafter there is a commitment to increase the rates further and progressively, in accordance with the recommendations of the commission, as the resources of the economy grow.

The Government are also committed to further streamline the rates or payment as the opportunity arises. Deputies will recall that the rates structure has been simplified over the last number of years. For example, the number of child dependant allowance rates has been reduced from 36 in 1987 to three rates this year. Other areas have also been streamlined where it was considered that the existing structure/differentials were not warranted. In continuing this approach in the 1991 budget certain payments will not be increased by a full 4 per cent in July, while others, on the other hand, will be increased by over 11 per cent. I would like to assure the House that all the increases are in line with the commitment in The Programme for Economic and Social Progress and, in general, represent significant real increases given that the rate of inflation is now running at 2.6 per cent.

The percentage increases in the rates of payment are set out in the following table which I will make available to Deputies. It shows that in certain cases a less than 4 per cent increase applies from July. However, the rationale for this, far from being a discriminatory policy, follows from the need, as well recognised by outside commentators, to streamline the payments structure wherever possible.
The table also illustrates that certain payments will be increased by far more than 4 per cent for example, short term unemployment asistance and similar payments will be increased by over 11 per cent. The minimum child dependant allowance rate has been increased by 9 per cent. Deputies will see, in fact, that in three of the four cases where a less than 4 per cent increase applies an increase of greater than 4 per cent applies to another element of the same payment, For example, the child dependant allowance rates for old age contributory and retirement pension will be increased by over 9 per cent.
I would urge Deputies to look at the overall rates structure and the achievements that have been made and will continue to be made under theProgramme for Economic and Social Progress.
Table
Percentage Increases from July 1991

Dependant's Allowances

Recipient

Adult

1st & 2nd Child

3rd +

% Increases

Old Age (Contributory) and Retirement Pension

4.0

4.0

9.4

9.1

—Adult over 66

0.7*

Old Age (Non-Contributory) Pension

3.8*

5.7

5.3

9.1

Disability Benefit

4.2

6.5

5.3

9.1

Invalidity Pension

4.3

4.0

12.0

9.1

Injury Benefit

0.3*

6.5

5.3

9.1

Widow's and Deserted Wife's (Contributory)

4.0

4.0

4.0

Widow's Non-Contributory Allowance-Deserted Wife's Allowance-Prisoner's Wife's Allowance

3.8*

Lone Parent's Allowance

3.8*

4.0

4.0

Orphan's Allowance (Contributory)

4.0

Orphan's Allowance (Non-Contributory)

4.0

Unemployment Benefit

4.2

6.5

5.3

9.1

Long Term Unemployment Assistance-Pre-Retirement Allowance

5.8

6.5

9.1

9.1

Short-term Unemployment Assistance-Supplementary Welfare Allowance

11.1

6.5

9.1

9.1

Carer's Allowance

11.1

9.1

9.1

Single Women's Allowance

5.8

*Increase of less than 4%.

Austin Deasy

Question:

15 Mr. Deasy asked the Minister for Social Welfare if he will grant additional pension rights to those who served in the national Army but whose present entitlements are only based on their employment in private companies; and if he will make a statement on the matter.

There are provisions within the transfer arrangements for pension entitlements within the public sector for the benefit of people who have served in the national Army. However, the question refers to private occupational pension schemes whose responsibility is that of their trustees and administrators. As Minister for Social Welfare I have no statutory function in relation to the rules or the benefit formulae of such schemes.

While the Pensions Act of 1990 provides for a range of very significant safeguards for private occupational pension schemes relating to such matters as the preservation of members rights, statutory funding control, disclosure of information, equal treatment for men and women and the duties and responsibilities of trustees, it does not provide for minimum levels of pension or for the reckonability of certain periods of service. Such matters are entirely within the arrangements agreed upon by the parties involved.

Paul Connaughton

Question:

17 Mr. Connaughton asked the Minister for Social Welfare the reason he considers it necessary for small farmers to sign on for unemployment assistance at their local Garda station; and the reasons the cheques cannot be posted out directly to the recipients concerned.

Smallholders claiming unemployment assistance are required at present to comply with the signing-on arrangements applicable to all unemployed claimants. Such persons who reside over six miles from their nearest local office are required to attend at their local Garda station or other approved signing centre once a week to have their unemployment declarations certified by a member of the Garda Síochána. These claimants are paid at their local post office.

In recent years, I have arranged for substantial investments in new technologies with a view to improving the service to social welfare clients. New and modern systems for the unemployed constitute a very specific objective which I have set my Department.

Arrangements have been made for alternative methods for paying certain unemployed persons. Some of these changes are already taking effect, for example the arrangements using personalised paying orders in book form are already proving to be a very efficient and acceptable way for paying our older clients. This development was needed to bring in the pre-retirement allowance scheme.

I have in mind extending this form of payment to smallholders generally as circumstances allow. Planning is already at an advanced stage; detailed discussions with the various interested parties are underway and a considerable measure of agreement has already been achieved.

I am confident that a further set of substantial improvements will be in operation for unemployed recipients, including smallholders, within the next six months and will be extended during 1992. The new arrangements will reduce the need for signing generally for many unemployed people.

Michael Creed

Question:

21 Mr. Creed asked the Minister for Social Welfare when a scheme will be introduced which will enable low income farmers to benefit from the family income supplement.

The family income supplement is a weekly cash payment to low paid employees with families. The scheme provides an incentive to those on low pay to remain in employment. When it was introduced in 1984 it was felt that the self-employed, including farmers, had less incentive to give up work and claim an unemployment payment, as they had no entitlement to unemployment benefit. As a result, the self-employed were excluded from the scope of the scheme.

At present, low income farmers can benefit from smallholders unemployment assistance. From July of this year, for example, a married farmer with three children will be entitled to a maximum payment of £124 per week. This represents a 34.6 per cent increase over the period 1987 to 1991.

The question of extending FIS to farmers must be considered in the context of a possible extension to self-employed workers generally. This would represent a major change in the emphasis of the scheme and would give rise to a considerable cost to the Exchequer. Such a major decision would have to take into account other measures to aid low income farmers. The Deputy will be aware that my colleague, the Minister for Agriculture and Food, is at present considering a scheme of income aid to low income farmers, for which £1 million has been provided in his Department's 1991 Estimate.

I intend to review the possible extension of FIS to self-employed persons in a budgetary context, in the light of other measures to aid the farming sector, and taking account of available resources.

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