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Dáil Éireann debate -
Tuesday, 2 Feb 1999

Vol. 499 No. 3

Written Answers - Social Welfare Benefit.

Jim O'Keeffe

Question:

79 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs if he has examined the family credit scheme in Northern Ireland which is available to self-employed families who are badly off; his views on whether there are many such families in this country; and his further views on whether there is a strong case for such a scheme here based on the Northern Ireland scheme or by way of an extension of the family income supplement to the self-employed. [2588/99]

I am aware that the family credit scheme, which operates in Northern Ireland and throughout the United Kingdom, includes provision for the self-employed. I should say that the scheme differs significantly from the family income supplement scheme in the manner in which the income supplement is calculated.

The Deputy will be aware that the family income supplement scheme was introduced here in 1984 with the specific purpose of providing an incentive to low paid employees with families to take up or remain in full time employment. The problems relating to incentives were seen, at the time, as being more acute for employees than for self-employed people.

In the intervening years, the question of extending the scheme to cover the self-employed, including farmers, has been considered on a number of occasions. Such consideration would have regard to a range of factors including the practical difficulties associated with extending the scheme to the self-employed, the arrangements already in place to provide income support to self-employed people on low incomes; and, most notably, the cost of introducing such a measure in the context of the need to prioritise the use of the limited resources available for the development of wider social welfare system.
The Deputy will be aware that a separate social assistance scheme, farm assist, is being introduced in 1999 to provide income support to low-income farmers. If FIS were to be extended to all other self-employed people, the costs involved have been estimated to amount to some £47 million, assuming substantial take-up. The potential number of beneficiaries is estimated to be of the order of 21,000.
Notwithstanding the existence of the family credit scheme which operates in Northern Ireland and throughout the United Kingdom, the Deputy will appreciate that the question of extending the family income supplement scheme to the self-employed must be considered on its own merits and take account of the factors I have outlined and, in particular, the high costs involved.

Trevor Sargent

Question:

80 Mr. Sargent asked the Minister for Social, Community and Family Affairs the levels of grants paid out under the scheme of community support for older people; if he has satisfied himself with the operation of this scheme; and if he will make a statement on the matter. [2521/99]

My Department has, since 1996, operated the scheme of community support for older people, the purpose of which is to provide funding for initiatives to improve the security and social support of vulnerable older people. This funding is provided by way of grant to voluntary groups and organisations who have undertaken to identify those elderly people in need of assistance under the scheme.

In general, grants under the scheme cover from 50 per cent to 90 per cent of the once-off cost of the purchase and-or installation of the necessary security equipment. While the maximum grant available under this scheme is 90 per cent of the total cost, it is not possible to guarantee this level of funding in respect of all applications received under the scheme.

A sum of £2 million was initially allocated to the scheme in the 1998 Estimates. Having reviewed the level of demand under the scheme last year I sought and obtained, Government approval for the allocation of an additional £3 million to the scheme, bringing the total allocation in 1998 to £5 million. I am satisfied that this level of funding was sufficient to allow my Department to make a meaningful response to worthwhile applications and to assist a large number of people again last year.

It should be noted that since its inception in 1996 a total of £12 million has been made avail able for this scheme and up to the end of 1997 some 36,000 people had been assisted by the scheme. It is anticipated that in excess of a further 20,000 people have been assisted in 1998.
Full details of funding provided to voluntary groups and organisations under the scheme of community support for older people up to and including 1997 are held in the Dáil Library for the information of Members. Details of grants paid to groups under the 1998 scheme are currently being compiled and will be available in the Dáil Library shortly.
I am anxious to ensure that this scheme addresses the security needs of the most vulnerable people and that it provides this assistance in the most efficient and effective way possible. In this regard, my Department has, in consultation with the Departments of Finance and Health and Children, commissioned an independent review of the scheme which will consider how the scheme is meeting its objectives and whether it is doing so in the most efficient and effective way possible. The final report from the consultants will be available shortly and the future operation of the scheme will be determined in the light of the outcome of this review.
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