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Dáil Éireann debate -
Wednesday, 4 Feb 1998

Vol. 486 No. 4

Written Answers. - Social Welfare Benefits.

Austin Deasy

Question:

33 Mr. Deasy asked the Minister for Social, Community and Family Affairs if he will extend the family income supplement scheme to include self employed persons who are genuinely in need of assistance. [2690/98]

Family income supplement, FIS has, since its introduction in 1984, been confined to employees on low incomes with families and is designed to provide them with an incentive to take up or remain in full-time employment.

Self-employed people whose income falls below the rate of unemployment assistance appropriate to their family circumstances are entitled to claim unemployment assistance. The rate of unemployment assistance payable depends on the person's means. In assessing means, account is taken of the net income which the applicant may reasonably expect to receive in the next year.

It is estimated that the extension of FIS to self-employed people with children could cost in the region of £30 million in a full year. This cost assumes a 100 per cent take-up and is in addition to the existing expenditure involved in providing unemployment assistance to self-employed people whose income falls below the rate of unemployment assistance appropriate to their family circumstances. In view of the significant additional costs involved, the question of extending FIS to self-employed people would be a matter for consideration in a budgetary context and in the light of other priorities.

The Deputy will be aware that, in accordance with a commitment given in Partnership 2000 and in the context of reducing disincentives to work, FIS is being reformed so as to be calculated on a net income basis, rather than on gross wages, as has been the case. This measure will come into effect in October 1998.

Thomas P. Broughan

Question:

34 Mr. Broughan asked the Minister for Social, Community and Family Affairs if he will increase the means threshold for old age contributory pensioners for the free fuel scheme; and if he will make a statement on the matter. [2681/98]

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.

In order to be eligible for assistance under the national fuel scheme the income of a contributory pensioner and his household must be below a certain limit, currently £15 per week in excess of the maximum contributory pension rate. This means that a person may have a combined household income of up to £15 per week over the appropriate Irish maximum pension rate, or savings of £8,000, and still qualify for the fuel allowance. Changes in the national fuel scheme should not be viewed in isolation from the primary schemes. Substantial increases in all the social welfare primary payments of either £3 or £5 per week were announced by me in the December budget and will be paid from June 1998.

Any changes in relation to the national fuel scheme would have to be considered in a budgetary context.

Brian O'Shea

Question:

35 Mr. O'Shea asked the Minister for Social, Community and Family Affairs if he will include in the Social Welfare Bill a provision whereby a person, who was on unemployment assistance and entitled to free fuel allowance, Christmas bonus and child dependant allowance up to the age of 22 for offspring in full-time education prior to participating for a continuous three year period on a community employment scheme, will continue on the termination of the scheme to be entitled to these benefits while in receipt of unemployment benefit; and if he will make a statement on the matter. [2715/98]

Breeda Moynihan-Cronin

Question:

38 Mrs. B. Moynihan-Cronin asked the Minister for Social, Community and Family Affairs the steps, if any, he has taken to ensure that, in future, all recipients of unemployment benefit receive a Christmas bonus following the completion of community employment schemes; and if he will make a statement on the matter. [2687/98]

Liz McManus

Question:

49 Ms McManus asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that people who finish community employment and qualify for unemployment benefit do not qualify for allowances available to long-term unemployed, including Christmas bonus, fuel allowance and certain child dependant allowances; his views on whether this may act as a disincentive to the long-term unemployed taking up community employment places; if he will have arrangements made to amend administration of these allowances so that people in this situation can retain the long-term benefits on a transitional basis; and if he will make a statement on the matter. [2561/98]

I propose to take Questions Nos. 35, 38 and 49 together.

I am aware of the situation of those former community employment workers who revert to the live register, and who, by virtue of having paid class A PRSI contributions, may qualify or re-qualify for unemployment assistance. I have explained the position to the House in replies to questions on several occasions in the past few months.

Briefly, the situation arises as a direct consequence of the extension of class A PRSI to community employment (CE) workers, which was provided for in the Social Welfare Act, 1996. The purpose of this measure was to enhance the PRSI status of community employment workers and to put them on a par with other class A workers.

In the case of persons who qualify or re-qualify for unemployment benefit their earnings in the relevant tax year will determine whether or not they receive a graduated rate or the full rate of unemployment benefit. Persons entitled to a reduced or graduated rate of unemployment benefit are entitled to claim unemployment assistance if it is more beneficial to them. However, long-term unemployment assistance is not payable where the claimant is entitled to full rate unemployment benefit. The social welfare secondary benefits, including butter vouchers and the free fuel allowance, are payable only with the long-term social welfare payments. Similarly, the continued payment of child dependant allowances in respect of children aged over 18 and in full-time education applies only to recipients of long-term payments. Unemployment benefit claimants do not therefore have an entitlement to these benefits and payments.

Secondary benefits can, however, be retained if the person transfers from a community employment scheme to a back-to-work allowance scheme or Jobstart, etc. It is important to note also that as regards income-related secondary benefits such as rent allowance, medical cards and differential rents, the position is that, in the normal course, former community employment workers who are solely dependent on a social welfare payment would continue, where appropriate, to receive these benefits.

While I recognise that community employment workers who re-qualify for unemployment benefit when their period of community employment finishes can face difficulties as a consequence of no longer having entitlement to certain secondary benefits, I am not in a position to introduce special concessionary arrangements for such people without having equal regard to the position of other short-term social welfare payment recipients. Any such concessions would, accordingly, carry an extremely high cost and could only be considered in light of available resources and in the light of other priorities.
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