Dáil Éireann debate -
Tuesday, 24 Nov 1998

Vol. 497 No. 2

Written Answers - Social Welfare Benefits.

Michael Finucane

Question:

283 Mr. Finucane asked the Minister for Social, Community and Family Affairs the reason persons who complete FÁS programmes and return to draw unemployment benefit are deemed ineligible for the double week payment at Christmas and the free fuel allowance. [24431/98]

Michael Ferris

Question:

291 Mr. Ferris asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to allocate the Christmas bonus to workers who have finished on social employment schemes. [24674/98]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

It is proposed to take Questions Nos. 283 and 291 together.

The issue raised by the Deputies relates to those former community employment workers who revert to the live register after completing a period on a community employment scheme, and who, by virtue of having paid class A PRSI contributions, may qualify or requalify for unemployment benefit rather than long-term unemployment assistance. As a consequence, they do not have entitlement to the social welfare secondary benefits which are payable only with long-term welfare payments.

This issue arises as a direct consequence of the extension of class A PRSI to community employment workers, which was provided for in the Social Welfare Act, 1996. The purpose of that 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 requalify for unemployment benefit 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 person is entitled to full rate unemployment benefit. The social welfare secondary benefits, including butter vouchers and the free fuel allowance, are payable only with long-term social welfare payments.

Secondary benefits can, however, be retained if the person transfers from a community employment scheme to a back-to-work allowance scheme or job start 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.

As I have explained repeatedly to the House, I am not in a position to introduce special concessionary arrangements for community employment workers who requalify for unemployment benefit without having equal regard to the position of other short-term social welfare payment recipients. The introduction of class A PRSI for community employment workers had the effect of placing them in the same position as other insured workers, in terms both of insurance benefits and of liabilities. It will be appreciated that any concessions in this area could not, in equity, be confined to former community employment workers. By way of illustrating the costs involved, it would cost some £5.4 million to extend entitlement to the Christmas bonus to all unemployment benefit and disability benefit claimants. Any concessions, therefore, would carry a high cost and could only be considered in light of available resources and in the light of other priorities.

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

It is proposed to take Questions Nos. 284 and 285 together.

The free telephone rental allowance is available to persons who are living in the State, aged 66 or over, and in receipt of a social welfare type payment. It is also available to certain people with disabilities under the age of 66 who are in receipt of certain welfare type payments. In addition, widows-widowers aged from 60 to 65 whose late spouses had been in receipt of the free schemes retain that entitlement.

To qualify for the free telephone rental allowance, the person must be living alone or only with certain excepted persons who satisfy this condition. This condition is not, however, applied in the case of persons aged 75 years or over who are in receipt of a qualifying payment.

The purpose of the allowance is to provide an element of protection and security in their homes for older and disabled persons who are either living alone or with persons who would be unable to summon help in an emergency. The allowance, which is only for landlines, covers the rental charges and a small number of calls. The cost of the installation of a second telephone socket is also covered by the allowance, but not the cost of an additional telephone. The question of the extension of the scheme to include mobile phones raises a number of issues, including costs that would have to be considered.

The free schemes were originally designed to benefit mainly older people in receipt of a social welfare type payment who were living alone and required additional assistance. However, over the years, additional categories of persons have been included. It is proposed to undertake a fundamental review of the free schemes, commencing in early 1999, to assess whether the objectives of these schemes are being achieved in the most efficient and effective manner and the issues raised by the Deputy will be considered in that context.