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Dáil Éireann debate -
Wednesday, 2 Feb 1994

Vol. 438 No. 2

Written Answers. - Social Welfare Benefits.

Desmond J. O'Malley

Question:

32 Mr. O'Malley asked the Minister for Social Welfare if he will extend the free travel scheme to recipients of prisoners wives allowance; and if he will make a statement on the matter.

The free travel scheme operated by my Department is available to all people living in the State aged 66 years and over as well as to certain incapacitated people in receipt of social welfare-type payments. The general purpose of the scheme is to encourage those people to remain active in the community.

There are no plans at present to extend the free travel scheme to recipients of other social welfare payments, such as prisoner's wife allowance.

I might mention that one of the improvements announced in last week's budget allows widows, whose late husbands had entitlement to free travel and the other free schemes, to retain entitlement to them where they are aged between 60 and 65 on the date of the husband's death.

Robert Molloy

Question:

33 Mr. Molloy asked the Minister for Social Welfare the number of non-nationals currently in receipt of unemployment assistance payments for a period longer than three months; and if these non-nationals must register with the gardaí before such payments will continue; and if he will make a statement on the matter.

It is estimated that there are approximately 3,500 non-nationals in receipt of unemployment assistance payments. Of this total approximately 2,900 have signed the live register for longer than three months.

Non-nationals, including citizens of EU member states, who have been in Ireland for more than three months are required to register with the registration officer of the Department of Justice. Registration is administered on behalf of that Department by the Garda.
In determining a claim for assistance deciding officers take the view that unregistered non-nationals are not freely available to accept offers of employment in this country.
Claims by non-nationals for unemployment assistance are determined in accordance with the same statutory conditions as claims by Irish nationals. Proof is sought that there are no restrictions on availability to take up employment.
Non-nationals who are not prohibited from accepting an offer of employment in Ireland as a condition of their terms of residence and who otherwise satisfy the statutory conditions, including the means test, can be paid unemployment assistance. The continued entitlement to unemployment assistance of non-nationals is reviewed after three months residence in Ireland having regard to their status as determined by the registration officer. Applicants who have been in Ireland for three months at the date of claim are asked about their registration status at the initial claim stage.

Jimmy Deenihan

Question:

35 Mr. Deenihan asked the Minister for Social Welfare if all budget increases for social welfare recipients could in future be paid in March; and if he will make a statement on the matter.

In this year's budget, I am providing for a 3 per cent increase in all weekly social welfare and health board payments with effect from July next. This increase applies to personal rates, adult dependant and child dependant allowances. Over 822,000 people and their 627,000 dependants will benefit, including pensioners, widows, lone parents and families who are out of work because of illness or unemployment.

In addition to the general 3 per cent increase, a further 3 per cent increase, i.e. 6 per cent in all, will be given to all short term weekly payments in order to bring them up to the Commission on Social Welfare's priority rate. The short term payments in question are disability benefit, unemployment benefit, injury benefit, short term unemployment assistance, supplementary welfare allowance and unemployability supplement. One hundred and eighty-five thousand people will benefit from this increase.
This year, the personal rates of disability benefit, unemployment benefit and injury benefit are being singled out for a further special increase of £2.10, bringing their rate to £61 per week, which is an overall 10 per cent or £5.40 a week increase. This substantial improvement in the basic personal rates arises from the decision of the Government to discontinue pay-related benefit payable with unemployment benefit for new claimants with effect from July next. The savings from that measure are being devoted in full towards this special increase.
I am also introducing further significant improvements for child benefit in line with the overall approach of developing child benefit as the main element of child income support. This year the higher rate of £23 will be increased to £25 and, in addition, is being applied to the third and subsequent children. The new payments structure from next September will be £20 for each of the first two children and £25 for each child thereafter.
The total cost of the social welfare measures announced in the budget, including the new widower's pension, improvements in family income supplement, measures for lone parents who take up work and improvements in the free schemes for pensioners, is £157 million in a full year.
These improvements must now be provided for on a statutory basis in the annual Social Welfare Bill which I will bring forward shortly. Early enactment of the Bill by the Oireachtas will allow for the administrative arrangements to pay the improvements in July.
Apart from the legislative and administrative constraints which I have described above an earlier implementation date of March would give rise to additional costs of nearly £50 million in 1994.

Godfrey Timmins

Question:

36 Mr. Timmins asked the Minister for Social Welfare if he will ensure that, under sections 281-283 of the Social Welfare Act, 1993, officers of his Department have discretionary powers in relation to the recovery of overpayment in genuine cases.

I am anxious that the procedures operating within my Department for the setting up and recovery of overpayments should be set on a more formal basis. With this in mind, I took regulatory powers in the Social Welfare Act, 1993 to introduce a code of practice for dealing with overpayments. The relevant provision is now contained in section 282 of the Social Welfare (Consolidation) Act, 1993. The code will copperfasten an equitable and consistent approach in relation to the recovery of overpayments which takes account of the factors which gave rise to the overpayment and of the circumstances of the individual client concerned.

My Department is preparing the code of practice under which officers appointed to deal with overpayments will be able to defer, suspend, reduce or cancel an overpayment in any particular case. I expect to be in a position to introduce the new arrangements at an early date. Officials of my Department have been working on the proposals. The task of putting the measures in place is nearing completion.

The Deputy will appreciate the need for a painstaking approach in this area to ensure that the measures introduced will stand the test of time. In a Department as large as this, with complex systems in respect of a wide variety of schemes, I am anxious that consistency should apply as far as possible. It is also necessary to ensure that the whole decision-making process itself is refined in every administrative detail — to ensure that the incidence of overpayments is minimised.

The Deputy can be assured that the provisions for genuine cases will be fair and reasonable. If he has any particular case in mind at present, I will be pleased to examine it if he will let me have the details.

Robert Molloy

Question:

37 Mr. Molloy asked the Minister for Social Welfare the number of people who are claiming social welfare disability benefit at the graduated rate of payment at 31 December 1993; and if he will make a statement on the matter.

The rates of disability benefit are graduated according to an individual's average weekly earnings. At present, where the average weekly earnings are below £35, the personal rate is £25. Where earnings are between £35 and £50 the personal rate is £36 and a rate of £43.50 is paid where the earnings are over £50 and less than £70.

There are approximately 2,700 people currently in receipt of disability benefit at the graduated rates of payment.

Pat Rabbitte

Question:

38 Mr. Rabbitte asked the Minister for Social Welfare if he has received any submissions or representations from widowers regarding inequality in their treatment; if he intends to take any measures to address the general inequality experienced by widowers; and if he will make a statement on the matter.

I will be introducing a contributory pension for widowers from October next.

The introduction of this scheme is a major breakdthrough in the development of our social insurance system. Provision will be made for the detailed arrangements in the forthcoming social welfare Bill.

The pension will be available to widowers on the same terms and subject to the same contribution conditions as for widows. Under the new arrangements, both widows and widowers will be entitled to a contributory pension for the first year after the death of their spouse after which a qualifying earnings limit will apply. However, this limit will not apply to those aged 66 or over.

The earnings limit proposed will be tapered between £12,000 and £16,000 per annum, that is, £230 to £310 in weekly terms. A reduced rate of pension will be payable above the £230 weekly earnings level, while no pension will be payable where earnings are in excess of £16,000 per annum which is well in excess of the average industrial earnings. Where a reduced rate of pension is payable the full amount in respect of child dependant increases will be paid.
I will also provide in the new scheme for transitional arrangements for men who became widowers within one year of the introduction of the new pension. They will also be entitled to the new pension for 12 months before the earnings requirement will apply. Those who are widowers for more than one year will be eligible to apply for the new pension subject to the earnings requirement.
The additional cost of the scheme is estimated to be £16 million in a full year.
I would also like to make it clear that existing recipients of widows pensions will not be affected in any way by these new arrangements. They will continue to receive their pensions irrespective of their level of earnings.
It is estimated that the number of new widows claiming under the new arrangements after October with earnings in excess of £16,000 a year will be fewer than 300.
I will be keeping the operation of the new pensions under close review to ensure that the position of widows with young children is safeguarded.

Richard Bruton

Question:

40 Mr. R. Bruton asked the Minister for Social Welfare if he will exempt medical card holders from paying the charges under his Department's treatment benefit scheme; and if he will make a statement on the matter.

The treatment benefit scheme administered by my Department provides assistance towards the cost of dental treatment, optical treatment and medical and surgical appliances.

An examination and oral health maintenance are provided free of charge under the dental benefit scheme. In addition, the scheme provides for a comprehensive range of dental treatments for which the patient is required to pay a portion of the cost. Similarly, the optical benefit scheme provides for a free eye examination and a contribution towards the cost of glasses.
Medical card holders are entitled to free dental and opthalmic services provided by the health boards under the Health Act. Medical card holders who also have social welfare entitlements may opt to avail of benefit under my Department's scheme but would then be liable for any patient charges arising.
The question of exempting medical card holders with dual eligibility from patient charges arising under the treatment benefit scheme would have significant cost implications which could be considered only in the context of resources being made available for this purpose.

Proinsias De Rossa

Question:

42 Proinsias De Rossa asked the Minister for Social Welfare if he will vary the order regarding the full rate of contribution requirement for mixed insurance, pro rata, old age contributory pension to provide for flexibility in circumstances where a person may be only one contribution short as in the case of a person (details supplied) in Dublin 11.

The rate of old age contributory pension payable to any person is related to the average of contributions at the full rate paid or credited over his insured lifetime. Where the average is 48 or more, full pension is paid. Reduced pensions are paid for averages below 48, down to a minimum of 20.

The person concerned has an average of 5 contributions and does not qualify for pension. He spent most of this working life in employment insured at the modified rate which does not include cover for old age contributory pension.

In the Social Welfare Act of 1991 special arrangements were made to enable people with a mixture of full rate and modified rate insurance to qualify for apro rata pension for averages of less than 20 contributions. These new arrangements provide that, in cases of a “mixed” insurance record, a pro rata pension will be payable, which will be proportionate to the periods of insurance completed at the rate appropriate for old age contributory pension purposes.
To ensure that people in this situation have a reasonable record of contributions at the appropriate rate the 1991 provisions required a claimant,inter alia, to have at least 260 contributions paid or credited at a rate reckonable for old age contributory-retirement pension.
Following a review of the regulations, an alternative test to this provision was introduced whereby a claimant may qualify if he/she has a minimum of 208 paid contributions.
Future developments in this area will be considered in the context of the report of the National Pensions Board.

Pat Cox

Question:

43 Mr. Cox asked the Minister for Social Welfare the maximum period of time a person can continue to receive mortgage subsidy under the supplementary welfare allowance scheme; and if he will make a statement on the matter.

Under the provisions of the supplementary welfare allowance scheme health boards may pay a weekly supplement to eligible people in respect of rent payments or the interest portion of a mortgage.

In the normal course a mortgage supplement would be reviewed after six months and in exceptional cases only be paid beyond twelve months. However, in cases where the supplement would be on a par with the rent supplement which the applicant would be likely to receive in respect of private rented accommodation, the supplement would be paid for as long as was deemed necessary by the health board.

The guidelines in relation to rent and mortgage supplements, including the question of the appropriate duration of such supplements, are currently being reviewed by my Department in consultation with the health boards.

Liz O'Donnell

Question:

44 Ms O'Donnell asked the Minister for Social Welfare the number of people who are currently in receipt of the pre-retirement allowance scheme; and if he will make a statement on the matter.

The pre-retirement allowance scheme which I introduced in 1990 is for people aged 55 years or over who are receiving long term unemployment assistance. Those who avail of the pre-retirement allowance option are no longer required to sign on the live register and are paid by a book of personalised payable orders which can be cashed weekly at a post office of their choice.

There are currently 15,882 people in receipt of the allowance. From July of this year they will benefit from a higher rate of personal payment of £61.00 a week, together with an adult dependant allowance of £36.60 and where appropriate a child dependant allowance of £13.20.

Martin Cullen

Question:

46 Mr. Cullen asked the Minister for Social Welfare the number of young people between the ages of 18 and 25 years who are currently in receipt of rent allowance under the supplementary welfare allowance scheme; and if he will make a statement on the matter.

There is no comprehensive data available in relation to the numbers of young people in receipt of rent supplements under the supplementary welfare allowance scheme. I am making arrangements for the compilation of regular detailed statistical information on the scheme which will provide this type of information. The limited data available indicates that approximately 30 per cent of total monthly rent supplements is paid to young people under 25, including married people and some parents. Some 20 per cent is payable to single people under 25 living on their own.

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