Written Answers. - Social Welfare Benefits.
Jack Wall
Question:
49
Mr. Wall
asked the
Minister for Social, Community and Family Affairs
if his attention has been drawn to the fact that young people participating in apprenticeships, paying the equivalent of social welfare rates, are not eligible for rent allowances; if he will review this regulation in view of the fact that it may put pressure on those who are not living in the family home to give up the apprenticeship; and if he will make a statement on the matter.
[10320/99]
The purpose of the supplementary welfare allowance, SWA, scheme is to provide a basic weekly allowance to eligible people who have little or no income. Those eligible for assistance under the SWA scheme would normally be in receipt of a social welfare or health board payment and would have to satisfy a number of criteria, including a means test. In addition, people with low incomes may also qualify for a weekly supplement to meet certain special needs, for example, rent and mortgage interest payments or a payment to assist with the cost of any exceptional needs they may have.
The legislation governing the payment of SWA precludes any person in full-time employment from receiving a rent supplement under the SWA scheme. A person is regarded as being engaged in remunerative full-time work where he or she is working for not less than 30 hours a week.
Single people on low pay such as apprentices and trainees who are in full-time employment do not qualify for a rent supplement and must provide for their own accommodation needs. I am aware that this can act as a disincentive to work for those on low pay especially where they have significant housing costs.
The responsibility for setting rates of payment for apprentices and ensuring that wage levels for all workers are fair and reasonable is a matter for my colleague the Minister for Trade, Enterprise and Employment. The introduction of a national minimum wage may help address this matter.
Between 1989 and 1998, expenditure on rent and mortgage supplements increased from £6 million to £88 million and is expected to rise to over £100 million in 1999. The extension of the SWA scheme to include the payment of rent supplement to single people in low paid employment, including apprentices and trainees, would involve a significant departure from the scheme as it currently operates and would have major financial implications.
The operation of the rent supplement scheme will be examined shortly in the context of the Government's commitment under Partnership 2000 to consider a tapering arrangement for SWA housing supplements, in consultation with the social partners.
In addition, an interdepartmental committee is examining the transfer of the administration of rent and mortgage interest supplements to the local authorities and the final report of this committee is nearing completion.
The further development of the SWA rent supplement scheme, to address this and other issues, can be considered in a budgetary context, taking into account the discussions with the social partners and the conclusions reached by the interdepartmental committee.
Jim O'Keeffe
Question:
50
Mr. J. O'Keeffe
asked the
Minister for Social, Community and Family Affairs
his views on whether there is a strong case for payment of the respite care annual allowance of £200 to the 34,000 carers now excluded from any payment of carer's allowance; and the cost of extending the respite care payment to those carers.
[10288/99]
The carer's allowance is a social assistance payment to carers on low incomes who live with and look after certain people who need full-time care and attention. At the end of February 1999 there were 11,486 carers in receipt of the carer's allowance. The estimated expenditure on the carer's allowance in 1999 will be almost £60 million.
Following a detailed examination of the review of the carer's allowance report, I introduced a range of measures in the 1999 budget to improve and develop the position of carers. Over 11,500 existing carers will benefit from the measures I have introduced while an additional 3,300 new carers will now qualify for a carer's allowance. This budget package, costing over £18 million, represents a 40 per cent increase on existing expenditure and is a very considerable addition to the £45 million spent on carers in 1998.
The review estimated that there are approxi mately 49,000 people in need of full-time care and attention. Of this number, almost 11,500 are in receipt of carer's allowance and this number is expected to increase to almost 15,000 following the package of measures introduced for carers in the budget. In addition, it should be noted that there are at least 2,000 other carers, based on applications for the allowance, in receipt of another social welfare payment from my Department, which is of greater benefit to them than a carer's allowance.
The estimated additional cost in 1999 of extending the respite care annual payment of £200 to all 49,000 carers providing full-time care and attention is £7.5 million. Over time as the scope of the allowance is widened, the respite allowance will be paid automatically to an additional 3,300 people next year.
The measures I have introduced in the budget clearly indicate my personal commitment and that of the Government to carers, who enable people in need of care to be looked after in their own homes and communities, and the appreciation we must all have for this valuable role in our society. In addition, I should also say that my colleagues the Minister for Finance, the Minister for Health and Children and the Minister for Environment and Local Government have also brought forward proposals of assistance to carers. The Government is conscious that such a cross-cutting approach is required.
