Brian O'Shea
Question:108 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to substantially improve payments to those receiving the old age pension [14280/98]
Vol. 492 No. 5
108 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to substantially improve payments to those receiving the old age pension [14280/98]
A key priority, as part of the Government action programme for older people, is substantial social welfare increases, including increases in old age pension to £100 per week over a five year period. These commitments as with other commitments in the programme for Government will have to be dealt with through the normal budgetary process and in this regard an important step to achieving this objective was taken through the £5 per week increase granted in the 1998 budget.
This undertaking shows the Government's commitment to older people and is a recognition of both the special place of older people in the community and also of their contribution to the economy over the years. It recognises older people's contribution, through their endeavours and sacrifices, to the current favourable economic situation in this country.
The position of pensions, both social welfare and occupational, and pensioners generally also arises for consideration in the context of the national pensions policy initiative which was submitted to me recently by the Pensions Board.
109 Mr. O'Shea asked the Minister for Social, Community and Family Affairs the proposals, if any, he has in relation to the loss suffered by people who finish on the community employment scheme in September or later each year and who do not qualify for the Christmas bonus in view of the 12 week period that they must be in receipt of a social welfare payment; and if he will make a statement on the matter. [14283/98]
The position in relation to the Christmas bonus is that entitlement is confined to recipients of long-term social welfare payments. Accordingly, recipients of short-term payments, including unemployment assistance, unemployment benefit, supplementary welfare allowance and disability benefit, do not qualify for this payment.
The entitlement to the Christmas bonus of people who return to the live register on completing a community employment, CE, scheme depends on whether they qualify or requalify for unemployment benefit by virtue of paying Class A PRSI contributions.
The Deputy will be aware that the Social Welfare Act, 1996, provided for the extension of Class A PRSI to CE workers. Class A PRSI provides cover for the full range of benefits and pensions available under the social insurance system, including, for example, unemployment benefit, disability benefit, maternity benefit, retirement pension, old age contributory pension, widow's contributory pension, treatment — dental and optical — benefits and occupational injuries benefit. The purpose of this measure was to enhance the PRSI status of CE workers and to put them on a par with other Class A workers.
In the case of people who qualify or requalify for unemployment benefit after a period of CE, their earnings in the relevant tax year will determine whether 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. As unemployment benefit is a short-term payment, persons who fall into this latter category are therefore not entitled to receive the social welfare secondary benefits, which comprise the Christmas bonus, butter vouchers and the free fuel allowance.