Dáil Éireann debate -
Tuesday, 20 Feb 1996

Vol. 461 No. 7

Written Answers. - Social Welfare Benefits.

Frank Crowley

Question:

263 Mr. Crowley asked the Minister for Social Welfare the consideration, if any, he has given to relaxing the qualifying conditions for a non-contributory old age pension in view of the fact that the current means test discourages pensioners from keeping money in banks and building societies and encourages attacks on their homes. [3868/96]

Minister for Social Welfare (Proinsias De Rossa)

The function of the means test in social welfare assistance payments is to direct resources towards people in greatest need. The means test applied in determining entitlement to an old age non-contributory pension include an assessment of the value of any capital or investments (other than family home) held by the applicant. The purpose of this assessment is to ascribe a notional value to the capital owned and, at present, different methods of assessment apply in the various social assistance schemes.

These provisions are currently being reviewed in my Department with a view to devising proposals for a standard method of assessment of capital for all social assistance payments. In view of the substantial costs involved, however, any changes in this area would have to be considered in the context of available resources.

The Deputy will be aware that at the end of last month I set up a Task Force on Security for the Elderly, the purpose of which is to make recommendations on how the security needs of low income pensioners can be addressed. This task force has been asked to report to me by the end of this month.

Dermot Ahern

Question:

264 Mr. D. Ahern asked the Minister for Social Welfare the reason participants on the community employment scheme cannot claim family income supplement particularly in view of the fact that they will be paying PAYE and PRSI as normal employees; the benefits, if any, the A1 contribution carries for CE employees; and if he will make a statement on the matter. [3869/96]

Minister for Social Welfare (Proinsias De Rossa)

The social employment scheme, the community employment development scheme and teamwork were amalgamated on 11 April 1994 into what is now known as community employment (CE). CE is aimed at providing part-time employment to assist unemployed people, particularly the long-term unemployed, to re-enter the labour market. The purpose of the family income supplement (FIS) scheme which is not an insurance-based scheme, on the other hand, is to create an incentive for people with families to take up or remain in paid full-time employment. Its purpose is essentially different from that of CE and to extend automatic entitlement of FIS to persons on CE would involve fundamental changes in the FIS scheme.

CE weekly rates of payment are £81.30 for a single person and £116.85 for a person with an adult dependant. A sum of £13.20 is payable in respect of each child dependant. CE participants receive payments which are in excess of their entitlements under the unemployment assistance scheme. For example, a CE participant with an adult dependant and two child dependants receives £143.25 per week, as against an entitlement under long-term unemployment assistance of £126.40 per week. CE participants are also free to supplement their payments through earnings from work outside of their working hours on the programme.

The earnings of CE participants will be subject to the full PRSI class A rate of contribution from next April. Class A contributions provide cover for the full range of social insurance benefits and pensions.