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Dáil Éireann debate -
Wednesday, 24 Nov 1993

Vol. 436 No. 2

Written Answers. - Social Welfare Benefits.

Theresa Ahearn

Question:

19 Mrs. T. Ahearn asked the Minister for Social Welfare if he proposes to reverse the situation whereby persons under 55 years of age who become redundant with a £12,000 or more payment are disqualified from unemployment benefit for nine weeks.

With effect from July 1992 the circumstances in which a claimant may be disqualified from receiving unemployment benefit for a number of weeks were broadened to include people under 55 years of age who, on termination of employment, receive severance payments in excess of a prescribed amount.

The position is that a person receiving a redundancy payment of more than £12,000 may be disqualified from receiving unemployment benefit for up to nine weeks and the overall duration of entitlement to that benefit of 15 months is reduced accordingly.
This measure was considered necessary to counter situations where the social insurance fund, in effect, could be used as a top-up for substantial redundancy packages which, in some cases, also involved seasonal work for fixed periods in subsequent years. After consultations with the trade unions and people affected by redundancy, the Government decided to improve the tax situation of people made redundant. The extra tax-free amounts granted in the Finance Act more than compensate for the nine weeks' disqualification from unemployment benefit.

Jim Higgins

Question:

20 Mr. J. Higgins asked the Minister for Social Welfare if he will review the decision to restrict supplementary welfare support for electricity bills in view of the hardship the decision is causing.

Under the supplementary welfare allowance scheme, health boards may make a payment to meet an exceptional need to people who are in receipt of a social welfare or health board payment. The determination of applications for assistance is a matter for the relevant health board.

I announced recently details of a new code or practice to assist people on social welfare payments who, because of exceptional circumstances, encounter difficulty in meeting their ESB or natural gas bills. The code replaces the 1992 circulars on this matter which I withdrew on 1 June, 1993. The code of practice involves the health boards, the ESB and Bord Gáis Éireann in a co-ordinated response to assist people with such difficulties.

The code was designed principally to assist people who are having frequent difficulties in meeting their fuel bills. Under the code, the person is advised to contact the ESB or Bord Gáis Éireann, in the first instance. A repayment agreement will be drawn up which will take account of the inability to pay. With the individual's permission, the ESB and Bord Gáis Éireann will liaise with the health boards in addressing the billing problem. The health board may support an agreement made under this code between the customer and the company by way of an exceptional needs payment, if considered appropriate.
My objective in producing this code of practice is to enable people to get back to a situation where they have control of their budget on an ongoing basis and where the supplementary welfare allowance scheme is used to help achieve an effective and lasting solution.
My Department has produced an information leaflet on the code of practice which sets out clearly the procedure which each organisation will employ when dealing with such cases.

John Bruton

Question:

21 Mr. J. Bruton asked the Minister for Social Welfare if he will have a cost/benefit study commissioned from the ESRI on the possible public savings in hospital and nursing home care that would come from an improvement in means test for the carer's allowance for those looking after elderly people at home.

Ivor Callely

Question:

37 Mr. Callely asked the Minister for Social Welfare his views on whether the carer's allowance has enormous potential; and if he will review the carer's allowance payments with the Minister for Health with a view to a new carer's allowance scheme, that would appeal to a broader group of carers and encourage people to remain in the community and avail of full time care and attention rather than availing of long stay nursing care in hospital or private nursing homes.

P. J. Sheehan

Question:

55 Mr. Sheehan asked the Minister for Social Welfare if he will abolish the means test on applications for the carer's allowance in cases where the sole income is unemployment assistance or dependent on spouses rate of unemployment assistance.

I propose to take Questions Nos. 21, 37 and 55 together.

The carer's allowance, which I introduced in November 1990, provides a direct payment to carers on a meanstested basis. The scheme was originally designed for people on low incomes who were providing full-time care and attention to elderly or incapacitated social welfare pensioners.
In July 1991 I extended the allowance to people providing care for recipients of disabled person's maintenance allowance from the health boards or recipients of an equivalent social security payment from another EC country or a country which has a bilateral social security agreement with Ireland.
At the end of last month there was a total of 4,685 allowances in payment.
The Economic and Social Research Institute published a report in December last year which focuses on all aspects of community and institutional care of elderly people and the implications of directing resources towards community care. I am reviewing the carer's allowance scheme taking account,inter alia, of the conclusions in that report.
The ESRI report also recognised the benefits of respite care. I made provision in this year's budget for a fund of £500,000 for grants to organisations providing respite care facilities and service to full-time carers. Two weeks ago I announced that the Government had doubled this fund to £1 million.
In introducing the carer's allowance, I took into account the vital and essential role played by carers in our society. For the first time a basic income-maintenance payment is being made directly to the carer. I will endeavour to improve the scheme and expand it as resources permit.
I will also continue to liaise with my colleague, the Minister for Health, regarding provision for carers generally. A relaxation or abolition of the means-testing arrangements would have significant cost implications and would have to be considered in a budgetary context.

Ivor Callely

Question:

23 Mr. Callely asked the Minister for Social Welfare if a social welfare recipient is permitted to participate in the home help scheme without affecting their social welfare benefits; and if he will make a statement on the matter.

Batt O'Keeffe

Question:

60 Mr. B. O'Keeffe asked the Minister for Social Welfare if he will allow home helps who are claiming unemployment assistance to engage in home help duties without interfering with their dole in view of the fact that the remuneration per hour is negligible and that they are engaged in carrying out humanitarian works.

I propose to take Questions Nos. 23 and 60 together.

Unemployment assistance is not payable in respect of any day during which a person is engaged in insurable employment under a contract of service irrespective of the extent of the employment or wages paid. Accordingly, people employed as home helps by the health board, being in insurable employment under a contract of service, would not be entitled to unemployment assistance for days during which they were so employed. If unemployed for at least three days in every period of six consecutive days, a person could qualify for assistance for the days not worked subject to satisfying the means test.

The 1991 Social Welfare Act provided for the exclusion from means assessment of income from employment of a casual nature by a health board as a home help. Accordingly, a person claiming unemployment assistance who is employed as a home help on a part-time basis will not be assessed with any means from these earnings; neither will a person be assessed with means arising from income earned by a spouse employed as a home help.

I am considering the treatment of home helps generally under the social welfare system. However, the payment of unemployment assistance to home helps on the days on which they are working would have implications for the treatment of part-time workers generally within the system.

Austin Currie

Question:

24 Mr. Currie asked the Minister for Social Welfare the number of widowers in the State; if he proposes to introduce a widower's pension; and the projected cost of introducing such a scheme.

Eamon Gilmore

Question:

72 Mr. Gilmore asked the Minister for Social Welfare the reason a widower does not qualify for a widowers pension, whereas a widow in similar circumstances qualifies for widows pension; the plans, if any, he has to introduce contributory widowers pension; and if he will make a statement on the matter.

I propose to take Questions Nos. 24 and 72 together.

The 1991 State Census shows that there are 37,939 widowers in Ireland, of whom 28,916 are age 65 or over. Widowers at age 65 are eligible for the retirement pension subject to the normal conditions. At age 66 they are entitled to either the old age contributory or non-contributory pension — again subject to the normal conditions. Widowers with children are eligible for the lone parent's allowance.

According to the 1991 State Census there are 9,023 widowers aged under 65. There were 689 widowers in receipt of the lone parent's allowance in 1992.

The question of extending social insurance cover to widowers generally arises for consideration in the context of further extension of the principle of equal treatment for men and women in the social security system.

It is estimated that the cost of extending to widowers the present social insurance arrangements for widows would be around £25 million in a full year.

The question of social insurance cover for widowers is being examined by the national pensions board in the context of its proposals for a new national pensions system. I expect to receive the board's report very shortly.

Richard Bruton

Question:

26 Mr. R. Bruton asked the Minister for Social Welfare if he will give the categories considered to be local enterprises for the purpose of employers availing of the back to work allowance.

Michael Creed

Question:

28 Mr. Creed asked the Minister for Social Welfare the number of applicants nationwide who have applied and been approved for the back to work allowance scheme; the role, if any, for FÁS in this scheme; and the reason for discontinuing the public advertisements of the scheme.

I propose to take Questions Nos. 26 and 28 together.

The back to work allowance scheme was introduced for the purpose of encouraging the creation of new job opportunities for both the unemployed and lone parents. It allows them retain a proportion of their entitlements, including secondary benefits, for two years while engaged in paid employment or self-employment.

I am confident that this pilot scheme will encourage growth in industries identified in the Culliton report as having potential for expansion. It will also provide additional incentives to the unemployed and lone parents to explore new types of employment and self-employment opportunities.

The response to the scheme has been positive. More than 1,700 inquiries have been received to date from employers, the unemployed and lone parents.

Self-employment proposals have been received from 150 unemployed people and 130 of these are now in receipt of allowance. Information on the scheme has also been issued to 2,000 employers. Applications have already been received from over 100 employers offering 255 jobs.

My Department is adopting a flexible, pro-active and supportive approach to the new scheme. Definitions of the qualifying categories included in the term "local enterprises" will not be finalised until a detailed assessment of interest and precise needs is possible. In the interim, any proposals put forward by employers to create new or additional employment opportunities in the broad sectors covered by the scheme will be considered. At this juncture the only rigid test is that they would not displace jobs in a similar activity in the locality.

Unemployed people who submit self-employment proposals under the scheme will be directed to the "start your own business" training courses provided by FÁS. My Department will liaise closely with FÁS and other relevant agencies to ensure that participants in the back to work allowance scheme receive appropriate support.
The scheme was advertised for 10 days on national radio and press. This is the normal duration of advertising campaigns by my department. It has since been supplemented by the issue of posters on the scheme to all social welfare local offices.
The scheme is being widely publicised within my Department at all levels. There are full-time information officers at all large local departmental offices who can provide detailed advice to potential employers and employees.
In addition to seventeen head office staff, eighteen middle management staff are already working full-time at local level in publicising the scheme. As the scheme builds up, additional full-time staff will be deployed. This is a ground-level scheme which will flexibly adapt to local needs.
I will review the necessity for further national advertising in the light of the local experience over the coming weeks.
Although the scheme has been in operation for six weeks only, I am confident that it will demonstrate considerable potential over the coming year and will make a worthwhile contribution to the Government's wide-ranging efforts to combat unemployment.
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