Dáil Éireann debate -
Wednesday, 26 Nov 1997

Vol. 483 No. 4

Written Answers. - Social Welfare Expenditure.

Róisín Shortall

Question:

51 Ms Shortall asked the Minister for Social, Community and Family Affairs the underlying reason for the 16 per cent increase in the supplementary welfare allowance as published in the 1998 Abridged Estimates; and if he will make a statement on the matter. [20552/97]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The underlying reason for the 16 per cent increase in the provision for supplementary welfare allowance next year is the expectation that the significant increase in expenditure and in take-up seen in recent years will continue into 1998.

The main increases in SWA expenditure in recent years have been on rent supplements. This can be attributed to the increasing demand for and cost of private rented accommodation. A number of factors are contributing to that situation, including large increases in rent levels due to a shortage of low cost housing, a shortage of local authority housing, growth in marriage breakdown and increases in the number of one parent families.

The number of people receiving basic SWA payments has also increased in recent years. For example, there were just over 19,500 people getting a basic SWA payment at the end of 1996, compared to 16,500 at the end of 1995. Most of this increase is due to accounting changes which followed the transfer of administrative responsibility for disabled person's maintenance allowance (DPMA), as it then was, from health boards to my Department in August 1995. An increase has occurred in expenditure on disability allowance, i.e. formerly disabled person's maintenance allowance, which has, in turn, impacted on payments of supplementary welfare allowance for people awaiting disability allowance.

Another part of this increase is due to the growth in the number of asylum seekers. Asylum seekers are not permitted to work in Ireland while awaiting a decision on their claim and so are in receipt of weekly basic SWA payments and, where appropriate, rent supplements. The cost of SWA payments to asylum seekers is not expected to be significantly higher in 1998 compared to 1997. This is because the number of asylum seekers arriving in Ireland has fallen each month since July 1997 and it is expected that the backlog of decisions on asylum claims will be reduced significantly during 1998.

A further factor contributing to the growth in expenditure is that participants on some back to work, community employment and educational schemes are allowed, within certain limits, to retain secondary benefits to which they were previously entitled immediately prior to joining the scheme. Such secondary benefits include rent and mortgage interest supplements, subject to a £250 monthly limit in the amount of the payment and a £250 per week income limit, diet supplements, fuel allowance and the back-to-school clothing and footwear allowance under the SWA scheme, butter vouchers, medical card and local authority differential rent. Participation on these schemes can continue from one to three years.