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Dáil Éireann debate -
Tuesday, 3 Feb 1998

Vol. 486 No. 3

Written Answers. - Social Welfare Benefits.

Ivor Callely

Question:

230 Mr. Callely asked the Minister for Social, Community and Family Affairs if he will extend the fuel allowance scheme to all persons over 75 years even if they have a private pension; and if he will make a statement on the matter. [2708/98]

The aim of the national fuel scheme is to assist householders who are on long-term social welfare or health board payments and who are unable to provide for their own heating needs. A payment of £5 per week, £8 per week in smokeless zones is paid to eligible households for 26 weeks from mid-October to mid-April.

The national fuel scheme is a means tested payment and is not age-related. The scheme at present is confined to recipients of mainly long-term social welfare or health board payments. The purpose of the fuel scheme is to relieve fuel poverty and the main criteria for eligibility is need.

There are no plans to extend the fuel scheme to any group who do not meet the present qualifying conditions.

Furthermore, in view of the financial implications any extension of the scheme could only be considered in a budgetary context.

There is a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances who have special heating needs. Under that scheme a person who may have exceptional heating costs due to ill health or infirmity may qualify for a heating allowance. An application for a heating allowance may be made by contacting a community welfare officer at a local health centre.

Joe Higgins

Question:

231 Mr. Higgins (Dublin West): asked the Minister for Social, Community and Family Affairs the steps, if any, his Department have taken to rectify the anomaly pointed out by the annual report of the Ombudsman of 1995 that from 1988 it has been compulsory for the self-employed to pay social insurance in category S, and, even though fully paid up under this schedule, they are unable to obtain invalidity or sickness benefit should the need arise; and if he will make a statement on the matter. [2710/98]

Self-employed persons are covered by class S social insurance which provides cover for old age (contributory) pension, widow's/widower's pension, orphan's contributory allowance, maternity benefit and adoptive benefit. They pay PRSI at 5 per cent subject to the same cumulative annual earnings ceiling as employees. This 5 per cent rate is considerably less than the combined employer and employee class A contribution rate (13 per cent or 16.5 per cent) applicable to employees in the industrial, commercial and service sectors. There are no proposals, at this time, to extend class S coverage to include contingencies such as illness or invalidity.

The National Pensions Board in its final report published in 1993 considered the question of the extension of invalidity pension to the self-employed. The board recommended against the extension of social insurance cover in respect of invalidity to the self-employed. In making this recommendation the board cited the different circumstances which apply to the self-employed who own their own businesses or farms as distinct from employees and the cost of extending such cover to the self-employed.
Self-employed people who are unable to work due to illness or disability and who satisfy a means test may qualify for supplementary welfare allowance (in the case of a short-term illness) or disability allowance (in the case of a long-term disability).
The anomaly referred to by the Ombudsman relates to a specific group of self-employed people who formally paid class A social insurance. The sub-category in question encompasses those with substantial existing records of full rate social insurance prior to becoming self-employed. The Ombudsman has suggested that the possibility of an arrangement to provide optional full rate cover to self-employed persons who have a prescribed minimum period of full rate cover be examined by the Department.
This proposal will be considered further by the Department. In the context of any such examination, regard will have to be given to the likely cost of the proposal, the numbers of self-employed who would be affected and the issue of introducing anomalous social insurance cover to different categories of the self-employed.
"Social Insurance in Ireland", a discussion document on social insurance, was published by the Department in October 1996. One of the issues relating to the future development of social insurance, which was identified in the document, is that of coverage, both in terms of the type of occupation included and the type of contingencies provided for. It is proposed to undertake a consultative process relating to social insurance which will involve seeking the views of contributors such as employers, employees and the self-employed, their representative organisations, and the public generally. The initial phase of this process has now commenced. The purpose of the consultation is to inform future policy development of the social insurance system, including the degree of cover provided for the self-employed and others.

Joe Higgins

Question:

232 Mr. Higgins (Dublin West): asked the Minister for Social, Community and Family Affairs the entitlements available to a dependent spouse and the conditions governing those entitlements. [2711/98]

The social welfare system as originally developed, was based on the traditional pattern of the husband being the main breadwinner and the wife being mainly dependent on him for income support. The social and economic realities in Ireland have altered considerably over the decades and the social welfare system has sought to respond to these changes. Notably, the automatic presumption of a wife being dependent on her husband was replaced in 1986 with the introduction of the equal treatment provisions which provided for a genuine test of dependency applying equally to both men and women.

A person in receipt of a social welfare payment can qualify for an additional allowance known as "qualified adult allowance" in respect of a spouse who is not claiming a social welfare payment in their own right, and whose earnings, if working, are less than £60 per week. A reduced rate of qualified adult allowance is paid where earnings are between £60 and £90 per week.

In addition, a spouse who meets the relevant conditions, e.g. in relation to unemployment, disability or old age may apply for the relevant payment in their own right.

The entitlements of qualified adults will vary according to the different circumstances in each household. They may, for example, be entitled to "homemaker credits" which protect the pension entitlements of an insured worker who has withdrawn from the open labour market in order to engage in home duties. Where a person is receiving unemployment assistance and a qualified adult allowance, the dependent spouse may opt to take up a place on schemes such as community employment in place of the person.

The treatment of married, cohabiting and one-parent families under the tax and social welfare systems is currently being examined by a working group established for that purpose in May 1997. Underlying the necessity for such a review was a need to examine the concept of adult dependency, in addition to ensuring fairness in the way that the State supports families, whether the parents concerned are married, cohabiting or parenting alone, while at the same time providing assistance for families who are at particular risk of poverty. The establishment of the group also marked the first stage in meeting the commitment, contained in the national anti-poverty strategy, to examine the individualisation of social welfare payments. This working group, which includes representatives of all the relevant Government Departments as well as the Combat Poverty Agency and the National Social Services Board is due to complete its work in the summer of 1998.

Bernard J. Durkan

Question:

233 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will award the benefit of the free schemes to widows who have not reached the age of 66 and who are entirely dependent on widow's pension; and if he will make a statement on the matter. [2722/98]

Free travel is available to all persons in the State aged 66 years, or over, and also to certain people with disabilities under the age of 66.

The other free schemes, such as the free electricity allowance, the free telephone rental allowance and free TV licence are available to people, usually aged 66 or over, who are in receipt of a welfare type payment and who are either living alone or who otherwise satisfy this condition. In addition, widows/widowers between the age of 60 and 65, whose late spouses had entitlement to the free schemes, retain that entitlement.

To extend the free schemes to all widows/widowers in receipt of a widow's/ widower's (non-contributory) pension who are under the age of 66 would involve additional expenditure which could only be considered in the light of the resources available.

Bernard J. Durkan

Question:

234 Mr. Durkan asked the Minister for Social, Community and Family Affairs whether he will consider the possibility of enabling surviving old age pensioners retain 75 per cent of joint pension after the death of their spouse; and if he will make a statement on the matter. [2723/98]

Following the death of a recipient of a social welfare payment or his or her spouse the payment is continued at the same rate for six weeks in circumstances where both spouses have a separate entitlement provided one or both of the entitlements is a non-contributory old age pension, a blind pension or a carers allowance or where the payment includes a payment for a qualified adult. The payment does not arise where each spouse has an independent entitlement to an insurance-based contributory pension.

Allowing a surviving spouse to retain 75 per cent of joint pension after the death of their spouse, as suggested by the Deputy, would have cost implications and would also raise equity issues as a surviving spouse would then be in receipt of a greater payment that a pensioner on a personal rate only.

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