Vol. 503 No. 4
54 Mr. Rabbitte asked the Minister for Social, Community and Family Affairs the threshold above which people lose secondary benefits in regard to the back to work area allowance; when the threshold was last increased; if he will increase it in line with earnings increases over the same period; and if he will make a statement on the matter. [10319/99]
Participants in the back to work allowance scheme are enabled to retain entitlement to secondary benefits subject to a weekly gross household income limit of £250. This threshold has not been increased since the scheme was first introduced in September 1993.
I recognise that the application of this income threshold can give rise to disincentives to participate in the scheme for social welfare claimants with families. This issue has been highlighted in the recently published report prepared by Goodbody Economic Consultants entitled "The Disincentive Effects of Secondary Benefits". I should mention that the threshold does not apply to the retention of entitlement to the medical card.
The report recommended that retention of secondary benefits should be based on an earned income threshold of £250 and not on gross income, i.e. income from employment or self-employment together with the back to work allowance and family income supplement payments where relevant.
The key secondary benefit affected by the £250 threshold is the rent and mortgage interest supplement payable under the supplementary welfare allowance scheme.
In line with a commitment contained in the Partnership 2000 agreement, I have recently initiated consultations with the social partners to explore how best the employment trap associated with the withdrawal of these supplements can be tackled. Consideration of any changes to the income threshold along the lines proposed by the Deputy or in line with the recommendation contained in the Goodbody report will be undertaken in the light of these wider consultations with the social partners.
55 Mr. Callely asked the Minister for Social, Community and Family Affairs the costs to his Department associated with the operation of the free travel scheme; the other options, if any, he has considered to encourage recipients of free travel to remain active in the community and travel by providing them with access to spare capacity on services; and if he will make a statement on the matter. [10265/99]
68 Mr. Wall asked the Minister for Social, Community and Family Affairs the plans, if any, he has to extend the free travel scheme. [10342/99]
I propose to take Questions Nos. 55 and 68 together.
The free travel scheme is available to all people living in the State aged 66 years, or over, and to all carers in receipt of carer's allowance. It is also available to people with disabilities under that age who are in receipt of certain welfare type payments. Companion passes are also available to certain groups who qualify for the scheme in their own right but who, because of a disability, cannot travel on their own.
The scheme is being further extended from this month to allow Free Travel to carers of people in receipt of constant attendance or prescribed relatives allowance.
The scheme provides free travel on a range of services provided by the CIE group of companies as well as on the services provided by over 70 private transport operators. The vast majority of these private contractors operate in rural areas. The Department is always willing to consider further applications from licensed private transport operators who may wish to participate in the free travel scheme.
The full year cost of free travel scheme for 1999 is approximately £34.5 million and at the end of March 1999, over 537,000 free travel passes had been issued.
The free travel scheme was originally designed to benefit mainly older people in receipt of social welfare pensions to encourage them to remain active in the community. However, over the years, additional categories of people have been added to scheme and the range of services available to them is being expanded as opportunities present themselves.
A fundamental review of the free schemes, including the free travel scheme, has commenced in order to assess whether the objectives of these schemes are being achieved in the most efficient and effective manner.
The review is being undertaken by the policy institute in TCD in association with the Department and it is expected that it will be completed and published by the policy institute in October or November this year. The conclusions of the review will then be considered in a budgetary context, as appropriate.
