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Dáil Éireann debate -
Tuesday, 24 Feb 1998

Vol. 487 No. 6

Written Answers - Social Welfare Benefits.

Jim O'Keeffe

Question:

256 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs if he will give details of the additional payments needed for each category of social welfare recipients where the scale of payment recommended by the Report of the Commission on Social Welfare in 1986 will not have been reached, even taking into account 1998 increases. [4724/98]

The Commission on Social Welfare (CSW) recommended that all personal rates of social welfare payment should be increased to a minimum adequate level — £50 in 1985 terms, £70.10 in 1998 terms.

The following table sets out the various increased payment rates, which were announced in the 1998 budget, as a percentage of the CSW's minimum recommended rate. As will be seen, all weekly social welfare payment rates, with the exception of two, will be above the CSW's recommended rate, ranging between 101 per cent and 118 per cent. This means that approximately 833,000 recipients, 94 per cent, will be in receipt of weekly payments which will be above the CSW's recommended rate. The two payments which will not have reached the CSW's recommended rate are short-term unemployment assistance and supplementary welfare allowance, which will move to £68.40 (98 per cent of the CSW's recommended rate). These payments account for some 57,000 recipients (6 per cent). The full year cost of increasing these rates by £1.70 to £70.10, i.e. the minimum level recommended by the CSW, is approximately £5 million.

As the Deputy will know, the Government is committed to fulfilling the terms of Partnership 2000, which provides, inter alia, that the minimum rates recommended by the CSW will be implemented before the end of the partnership (1999).

Social Welfare Rates as a percentage of CSW Main Rate.

Scheme

1985

1997

1998

88+

Old Age (Contributory) Pension

103%

113%

118%

Retirement Pension

103%

113%

118%*

Widow/Widower's (Contributory) Pension

93%

103%

106%

109%

Deserted Wife's Benefit

93%

103%

106%

109%

Carer's Allowance

102%

105%

108%

Invalidity Pension

91%

101%

103%

118%*

Old Age (Non-Contributory) Pension

88%

98%

103%

Widow/Widower's (Non-Contributory) Pension

86%

98%

101%

103%

One-Parent Family Payment

86%

98%

101%

103%

Deserted Wife's Allowance

86%

98%

101%

103%

Prisoner's Wife's Allowance

86%

98%

101%

103%

Blind Person's Pension

88%

98%

101%

103%

Disability Allowance

98%

101%

Injury Benefit

109%

98%

101%

Disability Benefit

79%

98%

101%

Unemployment Benefit

79%

98%

101%

Pre-Retirement Allowance

98%

101%

Long-Term Unemployment Assistance

70%

98%

101%

Short-Term Unemployment Assistance

66%

95%

98%

Supplementary Welfare Allowance

64%

95%

98%

*Applies where recipient is 65 or over.

Jim O'Keeffe

Question:

257 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the level of social welfare expenditure as a proportion of GDP in 1987; and an estimate of this for 1998. [4725/98]

Social Welfare expenditure represented 12.3 per cent of GDP in 1987. The corresponding figure in respect of 1998 is estimated at 9.5 per cent.

Jim O'Keeffe

Question:

258 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the number of people who commenced self employment in 1997 of the 75 per cent rate of their social welfare payment on the back to work allowance; if he will give details of the arrangements recently notified to them to have these claims switched to 100 per cent for an additional year; the cost and the way in which these new arrangements will be implemented. [4726/98]

As announced in the budget last December, the area enterprise allowance under which long-term unemployed persons in designated Partnership areas taking up self-employment can retain 100 per cent of their unemployment assistance payment for a year, has, with effect from 1 January 1998, been extended to the entire country. The effect of this extension is to remove a long standing anomaly which existed between Partnership areas and non-Partnership areas, thus providing all self-employed applicants coming on to the area allowance with the same level of support irrespective of where they live.

The practice generally is that people on the area allowance of 100 per cent for a year then move on to back-to-work allowance at 75 per cent of their payment, reducing to 50 per cent and 25 per cent in succeeding years. There is therefore, in effect, a four year cycle of support for people in this situation.

The issue referred to in the Deputy's question concerns people outside partnership areas who were already on the 75 per cent rate of support when the extension came into effect, and in particular, whether they should now qualify for payment at the 100 per cent rate. The issue is whether this is justified, since the people concerned have already taken up self-employment without requiring this high level of support. This issue is under consideration at present.

It is estimated that some 1,500 people from non-Partnership areas commenced self-employment in 1997 with the support of the back-to-work allowance at the 75 per cent rate. The cost of transferring these people to the area enterprise allowance is of the order of £2 million.

Jim O'Keeffe

Question:

259 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the way in which the 8,000 farmers, currently in receipt of smallholder's assistance, can be expected to be available for and genuinely seeking work in view of the fact that their income from work is deducted from the maximum payment which would otherwise be payable; and if he will make a statement on the best way to provide adequate income support to smallholders. [4727/98]

In addition to satisfying a means test, the conditions for receipt of unemployment assistance require that an applicant must be capable of, available for and genuinely seeking work. As the Deputy will appreciate, these are statutory conditions which cannot be changed without the relevant legislation being amended.

Many smallholders supplement their farm income, either themselves or through other members of the household, through employment outside the farm and put themselves outside the limits for entitlement to unemployment assistance as a consequence of that. In the case of smallholders on unemployment assistance the scheme is in effect a form of income support which tops up the actual net income from working the farm to the appropriate level of unemployment assistance for the particular family circumstances. People in this category must also fulfil the conditions of being available for and seeking work and are generally able to do so. There are currently 7,752 smallholders in receipt of unemployment assistance under these arrangements. Other persons claiming unemployment assistance are also subject to a reduction in payment consequent on an increase in means where derived from economic activity. As the Deputy is aware there is a variety of schemes of support for farming operated by different Departments and there is an ongoing need for co-ordination between the schemes concerned. It is my view, however, that the smallholders unemployment assistance scheme continues to have an important role in meeting the basic income maintenance needs of this group and I will be seeking to ensure that it operates in a complementary way with the other supports which are available.

In this connection I recently announced, with my colleague the Minister for Arts, Heritage, Gaeltacht and the Islands, improvements in the method of assessing compensation payments under the rural environment protection scheme (REPS), designed to improve take-up under that scheme, especially by smallholders on social assistance payments. Under the existing arrangements farmers claiming unemployment assistance, pre-retirement allowance and the old age non-contributory pension can have the first £2,000 of REPS payments disregarded for means test purposes. Under the revised arrangements, the first £2,000 will continue to be disregarded, with the balance being assessed at 50 per cent, rather than on a full pound for pound basis as at present. This means, for example, that a farmer who receives a REPS payment of £4,000 will now be £1,000 better off. This represents a significant improvement in income support for those involved. I will continue to keep this scheme under review to ensure it operates in an effective way in meeting the income support needs of this group.

Bernard J. Durkan

Question:

260 Mr. Durkan asked the Minister for Social, Community and Family Affairs the reason unemployment assistance is being refused to a person (details supplied) in County Kildare in view of his particular circumstances; and if he will make a statement on the matter. [4740/98]

The person concerned was in receipt of unemployment assistance up to 17 February 1998. On 21 January 1998 as part of a review of his entitlement he was requested to submit a rent receipt and a letter from his landlord confirming his present address but to date he has failed to forward the required documentation. Payment was disallowed by a deciding officer with effect from 18 February 1998 on the grounds that the claimant had failed to show that his means did not exceed the statutory limit for entitlement. When the claimant submits the required documentation the matter will be reviewed. It is open to him to appeal this decision.

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