Vol. 438 No. 5
117 Mr. R. Bruton asked the Minister for Social Welfare if his attention has been drawn to the fact that persons who are working part time have to go without their supplement from unemployment benefit for 13 weeks during the period of re-qualification; his views on whether this can be a source of significant hardship for those affected; and if he will make a statement on the matter.
Social welfare legislation provides that where a person has claimed the maximum entitlement of 390 days unemployment benefit a further 13 paid insurance contributions are necessary to requalify.
A person who has used up his/her entitlement to benefit may apply for unemployment assistance, at the long term rate, while in the process of accumulating the necessary 13 paid contributions. In addition, a proportion of the person's earnings from employment is disregarded when determining his/her payment.
The earnings disregard is equivalent to the maximum daily rate of assistance plus £15.00 for each day worked. For example, a single person, with no other means, working three days per week can, at present, earn up to £4.60 and receive £29.60 Unemployment Assistance in respect of the other three days. By contrast, Unemployment Benefit for three days would only be £27.80 for a single person. The Deputy will be aware that the rates of Unemployment Assistance and Unemployment Benefit are being equalised from July.
118 Mr. R. Bruton asked the Minister for Social Welfare the estimated cost of extending free schemes to all widows aged from 60 to 65, compared to the extension to only those whose husbands died when in receipt of the free schemes.
At present, the free schemes are only payable to qualified people over 66, and to people on invalidity pension or other similar payments. As I announced in my budget speech, the free schemes are being extended to widows aged 60 to 65 whose late husbands were receiving these benefits, and who met the other qualifying conditions for the schemes, apart from the age condition.
There are about 16,200 widows aged 60 to 65 currently in receipt of a social welfare payment. It is estimated that to extend free schemes to all these widows would cost an additional £4 million a year over and above the cost of the improvements recently announced in the budget.
119 Mr. R. Bruton asked the Minister for Social Welfare the estimated saving from restricting the payment of widows pension for persons with earnings of £12,000 and over to persons widowed in the years 1994 to 1997.
I am introducing a new contributory pension scheme for widowers and their families. The budget provided £16 million for the cost of this scheme in a full year. It is estimated that 4,500 men will benefit immediately the new scheme is introduced.
In line with the National Pensions Board's recommendations, the budget proposed that the new pension would be available to women and men on an equal basis. Details of the proposed scheme will be contained in the forthcoming Social Welfare Bill.
It is estimated that fewer than 300 new widows would have earnings in excess of £16,000 which is the "earnings requirment" for men and women for continuation of payment after 1 year, outlined in the budget proposal. In this context, 5,200 widows would continue to qualify each year.
In my budget speech, I particularly drew attention to my concern to ensure that the position of widows with young families would be safeguarded in the new scheme.
An accurate estimate of the financial effects of the proposals will be available when details of the scheme are published in the Social Welfare Bill.
