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Dáil Éireann debate -
Wednesday, 4 Feb 1998

Vol. 486 No. 4

Written Answers. - Social Welfare Benefits.

Breeda Moynihan-Cronin

Question:

102 Mrs. B. Moynihan-Cronin asked the Minister for Social, Community and Family Affairs the full year cost of the social welfare improvements announced in the budget; and the amount of money available to him for improvements in social welfare services including carer's allowance and the free schemes after the weekly rate increases, the child benefit increases and the family income supplement changes have been taken into account. [2886/98]

The 1998 budgetary allocation for the Department of Social, Communty and Family Affairs provides for increases in social welfare payments and other improvements amounting to £225 million in a full year. I propose to circulate a table showing the breakdown of these moneys.

Of the £225 million, just over £180 million was allocated to increases in weekly social welfare payments. Over £28 million was allocated to child benefit and £10 million to family income supplement. The total of these three items is £218 million; the remaining £7 million was allocated to other improvements to the social welfare code, including carers, free schemes, community and voluntary supports, and a substantial increase in funding for family services.

In line with commitments made in An Action Programme for the Millennium and in the Partnership 2000 agreement, the Government placed particular emphasis on improving the weekly social welfare payment rates. The maximum rate of all pensions for people over 66 was increased by £5 as a significant first step towards meeting the commitment to increase the old age contributory pension to £100 per week over the five year period of this Government. Furthermore, a £3 increase was awarded to weekly personal rates of payment for people under 66. This increase is substantially above the expected rate of inflation. When these rate increases come into effect in June 1998, all but two social welfare rates will have exceeded the target recommended by the Commission on Social Welfare.

Carers benefited from these rate increases along with other groups. As well as providing for the general £3 increase in the weekly rate of payment for the carer's allowance, and the extra £2 increase for those aged 66 and over, I have also made the following three improvements in the carer's allowance scheme: 1. the introduction of a disregard of non-national disability pensions; 2. the introduction of six weeks payment after death to carers whose spouse was not in receipt of a social welfare payment; and the provision of a free travel pass to carers in receipt of carer's allowance. All carers will benefit from this measure at an annual cost of £0.6 million.

In relation to the free schemes, the budget provides for the retention of entitlement to these by people, regardless of age, who transfer from invalidity pension, disability allowance or blind person's pension to any other social welfare payment.
In addition, the free travel scheme will be extended to grant a companion free travel pass to all people who are permanently resident in the State and who satisfy the following conditions: are aged 75 years or over; and are medically certified as being unfit to travel alone. This will allow the holder of the pass to have a person over age 16 accompany him or her free of charge when travelling. This measure will come into effect in September 1998. The main group who will benefit from this measure are single people aged over 75, who are unable to travel alone. It is estimated that 17,000 people will benefit from this measure at an annual cost of £0.5 million.
Breakdown of 1998 budget allocation to the Department of Social, Community and Family Affairs

Full Year Cost

£m

1. Increase in weekly rates of payment

180.66

2. Child and Family Income Support

38.27

3. Employment Supports

0.32

4. Disability Allowance

0.50

5. Free Schemes

0.50

6. Carers

0.60

7. Means Test

0.03

8. Family Services

3.10

9. Voluntary and Community Services

1.02

Total

225.00

Bernard J. Durkan

Question:

103 Mr. Durkan asked the Minister for Social, Community and Family Affairs the number of persons in receipt of unemployment assistance and on long-term unemployment assistance; and if he will make a statement on the matter. [2852/98]

Bernard J. Durkan

Question:

104 Mr. Durkan asked the Minister for Social, Community and Family Affairs the total numbers of persons on unemployment assistance who are under 22, under 30, under 40, under 50 and over 50; and if he will make a statement on the matter. [2853/98]

It is proposed to take Questions Nos. 103 and 104 together.

The total number of unemployment assistance claimants on the live register at the end of December 1997 was 159,825, a decrease of 27,091 or 14.5 per cent over the December 1996 figure of 186,916.

The age and duration information sought by the Deputy is not available in the exact format requested. The most recent age-by-duration breakdown of the live register, which is published by the CSO, relates to October 1997. This information is given in the following table. The data are broken down by age between those who have been signing on the live register for less than one year and those who are signing for one year or more.
Persons on the Live Register in Receipt of Unemployment Assistance at the end of October 1997

Age

Short-term

Long-term

Total

Under 20

8,825

2,448

11,273

20-24

17,800

14,312

32,112

25-34

18,721

27,391

46,112

35-44

11,218

24,869

36,087

45-54

7,237

21,461

28,698

55-59

2,141

4,812

6,953

60-64

957

1,823

2,780

Total

66,899

97,116

164,015

Source: Live Register Age by Duration Analysis — October 1997 published by the Central Statistics Office
The total figure for those claiming unemployment assistance shows a decrease of 29,092 or 15 per cent over the October 1996 figure of 193,107. Short-term unemployment dropped by 13 per cent and long-term unemployment dropped by 17 per cent.

Bernard J. Durkan

Question:

105 Mr. Durkan asked the Minister for Social, Community and Family Affairs the total number of persons on disability benefit; and if he will make a statement on the matter. [2854/98]

The total number of people in receipt of disability benefit at the end of December 1997 was 40,236. This figure continues the decreasing trend in the number of disability benefit recipients over the last ten years.

The figures in the following table show a decrease in the number of recipients from 61,967 in 1988 to 40,236 in 1997, a decrease of 35 per cent. The vast majority — approximately 80 per cent of disability benefit claims are for a duration of less than eight weeks.

Number of Recipients of Disability Benefit 1988-1997 (end of year figures)

Year

Recipients

1988

61,967

1989

55,521

1990

52,765

1991

49,726

1992

47,733

1993

43,924

1994

41,869

1995

41,830

1996

42,460

1997

40,236

Bernard J. Durkan

Question:

106 Mr. Durkan asked the Minister for Social, Community and Family Affairs the total number of persons who, by age, qualify for old age pension but fail to qualify due to insufficiency of contributions during their working lives; and if he will make a statement on the matter. [2855/98]

In 1997, a total of 2,691 persons failed to qualify for the full rate old age contributory pension due to an insufficiency of contributions during their working lives. The majority of applicants were rejected on the basis of an insufficient yearly average number of contributions. However, 209 — 8 per cent — of these individuals may qualify for a reduced rate pension.

To qualify for the old age contributory pension, a person must have entered insurance at least ten years before pension age, have at least 156 contributions paid and have a yearly average of at least 20 contributions registered since January 1953, when the unified system of social insurance came into effect, or the time they started insurable employment, if later.

A new pro rata old age — contributory — pension was introduced with effect from 21 November 1997. The yearly average condition was reduced to ten contributions. A pro rata pension is payable depending on the yearly average number of contributions. To qualify a person with a yearly average of between ten and 19 must have 260 rather than 156 paid contributions.

While it is estimated that approximately 8,500 people will benefit immediately from the new provisions, some 1,300 persons will benefit every year thereafter. These will include categories such as women who have spent long periods outside the paid workforce and who do not benefit from the 1994 homemaker's provisions; returned emigrants who entered the workforce here for a short spell before working abroad for a long period and who then returned to take up employment here; and people who entered social insurance at an early stage and then became self-employed for a long period before the extension of social insurance to the self-employed in 1988.

Bernard J. Durkan

Question:

107 Mr. Durkan asked the Minister for Social, Community and Family Affairs whether he will expand the scheme of pro-rata old age pensions; and if he will make a statement on the matter. [2856/98]

From 21 November last new pro rata pensions were introduced so that people who pay social insurance for a reasonable period of time will qualify for an old age — contributory — pension. A yearly average of between 15 and 19 contributions gives a pension of 75 per cent of the maximum rate, while an average of between ten and 14 gives a pension of 50 per cent of the maximum rate. To qualify a person also needs to have a minimum of 260 paid contributions. This measure will be of benefit to many self-employed contributors and to those, mainly women, who took time-out of the paid workforce for family reasons.

While I have no specific plans for the further extension ofpro rata pensions, I will continue to ensure the broadest possible contributory pension cover to as many categories as possible. As the Deputy will be aware, I have asked my Department to examine the general issue relating to the self-employed group aged over 56 in April 1988 who do not currently qualify for an old age — contributory — pension. As any proposals in this regard would have a major cost implication they would fall to be considered in a budgetary context.
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