Vol. 500 No. 1
244 Mr. Crawford asked the Minister for Social, Community and Family Affairs his views on whether it is unjust that a widow who is in receipt of a contributory old age pension has been refused six weeks pension after her late husband's death which would be payable to a non-contributory pensioner; and if he will make a statement on the matter. [3177/99]
There are various schemes within the social welfare system to assist families in dealing with death and funeral expenses. These include the payment of six weeks social welfare following the death of a social welfare recipient or his/her spouse, the payment of a death grant to insured people and their families and the payment of a funeral grant under the occupational injuries benefit.
Following the death of a recipient of a social welfare payment or his or her spouse, the payment is continued at the same rate for six weeks in circumstances where both spouses had a separate entitlement provided one or both of the entitlements was a non-contributory old age pension, a blind pension or a carer's allowance or where the payment includes a payment for a qualified adult. The payment does not arise where each spouse had an independent entitlement to an insurance-based contributory pension.
I have recently announced improvements in the death grant, which is a payment made to certain insured people and their families based on their PRSI contributions to assist in the payment of funeral expenses. The death grant is now being totally redesigned and upgraded in the following ways: increasing the amount payable five-fold from £100 to £500; and improving the coverage by easing the qualifying PRSI conditions and extending the scheme to other PRSI contributors.
These improvements are provided for in the 1999 Social Welfare Bill, which was published last week. The improvements will take effect from 6 April 1999.
These improvements, at an estimated cost of £10 million in a full year, are the first step in the development of a new and improved bereavement allowance. Other schemes, including the six week payments after death arrangements will be reviewed further in 1999.
245 Mr. Perry asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that disability allowance is the only means tested payment which does not disregard the £2,000 REP scheme payment; if his attention has further been drawn to the huge anomaly that exists in view of the fact the recipients of disability allowance are totally dependent on other people and do not have any chance of ever being engaged in employment; his views on whether REP scheme payments are of no advantage when assessments are carried out; the plans, if any, he has to correct this discrimination and injustice; and if he will make a statement on the matter. [3187/99]
In assessing means for social assistance purposes, account is taken of the value of any capital or investments, together with any cash income that the person has. 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 purposes and 50 per cent of the balance. In addition, any expenses incurred in complying with REPS measures are also disregarded in the assessment of means.
Over the years, different methods of assessing capital and income have applied in the case of the various social assistance schemes. Some of these differences are designed to achieve specific policy objectives. For instance, the first £50 of weekly earnings from employment of a rehabilitative nature are disregarded when assessing means for disability allowance purposes.
However, it is recognised that there is a need to standardise many of the different methods of calculating means in order to achieve greater equity within the system. In this regard, considerable progress has already been made in the area of standardising the assessment of capital. The introduction of the disability allowance scheme in October 1996 provided the opportunity to commence this process. Under the new assessment provisions, the first £2,000 of capital is disregarded, the next £20,000 is assessed at 7.5 per cent and the balance is assessed at 15 per cent. These revised capital assessment provisions were extended to the old age (non-contributory) pension, widow's and widower's (non-contributory) pension, orphan's (non-contributory) pension, carer's allowance and pre-retirement schemes from October 1997 and to the rent allowance scheme for former controlled tenancies from June 1998.
The question of standardising the various earnings disregards, including those applying to REPS payments, would have to be examined in the light of available resources and having regard to the commitments contained in the Government's Programme – An Action Programme for the Millennium, Partnership 2000 and the national anti-poverty strategy.
