Vol. 511 No. 6
341 Mr. Naughten asked the Minister for Social, Community and Family Affairs the plans, if any, he has to increase lone parent's allowance for parents returning to education in view of the fact that many parents are finding it difficult to remain in education, particularly in the case of a person (details supplied) in County Roscommon; and if he will make a statement on the matter. [24985/99]
342 Mr. Naughten asked the Minister for Social, Community and Family Affairs the reason a person (details supplied) in County Roscommon returning to education has been refused rent allowance; and if he will make a statement on the matter. [24986/99]
I propose to take Questions Nos. 341 and 342 together.
The one parent family payment is a social assistance payment which is intended to meet the income support needs of lone parents in general. In common with other schemes of this nature supports for those taking part in education and training schemes are provided as a substitute for, or in some cases, as an extra allowance in addition to their basic social welfare payment. It is considered that this is the most suitable and practical way of delivering this support and, accordingly, increases in OFP for this purpose would not be appropriate.
344 Mr. Boylan asked the Minister for Social, Community and Family Affairs the way in which people can invest their money to make a return to achieve the 7.5 per cent return calculated by his Department on an investment of £20,000 for means test purposes on non-contributory pensions. [24988/99]
While the current formula which is used for the assessment of capital for non-contributory pension purposes includes rates of 7.5 per cent and 15 per cent, it should be noted that the actual effective assessment rates are much lower. For example, a couple with capital of £20,000 would only be assessed with means of £600, giving an effective assessment rate of just 3 per cent.
However, I have already indicated to the House that my Department is reviewing the current method of assessing capital which was introduced by my predecessor.
As part of this review, a recent sample survey was carried out to identify the amounts of capital held by old age pensioners. This survey indicates that of the 35,000 pensioners who have capital, approximately 24,600, 70 per cent have less than £5,000, while some 31,000, 88 per cent have less than £10,000. Only about 4 per cent of pensioners surveyed had capital in excess of £20,000.
In the light of the survey findings, my Department is currently examining options for improving the method of assessing capital. However, in addition to benefiting those already in receipt of old age non-contributory pensions, any reduction of the current assessment rates would also be of benefit to pensioners with substantial amounts of capital and who are not currently entitled to payment.
I would be anxious, therefore, to ensure that any possible changes to the current rules would benefit those with modest amounts of capital, while the system should continue to ensure that the small proportion of people with large amounts of capital should avail of it to contribute, at least partially, towards meeting their needs.
As any relaxation of the current rules would have financial implications, such a change could only be considered in a budgetary context.
345 Mr. Fleming asked the Minister for Social, Community and Family Affairs if widows and widowers who are in receipt of widows and widowers contributory pensions or non-contributory pensions will continue to receive their full pensions in cases where they participate on community employment following the recent Government decision to allow them participate on community employment. [25093/99]
Persons in receipt of widow's or widower's contributory pension will retain their existing pension entitlements on taking up a place on a community employment scheme.
A widow or widower with dependent children and who does not have an entitlement to a widow's or widower's contributory pension should apply for one-parent family payment, rather than widow's or widower's non-contributory pension and will have access to community employment through that route.
346 Mr. D. Carey asked the Minister for Social, Community and Family Affairs the circumstances in which children of seriously ill parents, living at home, can qualify for the carer's allowance; and the circumstances, if any, where the means test is dispensed with. [25108/99]
The carer's allowance is a means tested payment for carers on low income who look after people in need of full-time care and attention.
To qualify for the allowance the carer must be aged 18 or over, satisfy a means test, be caring for the person on a full-time basis, not be employed or self-employed for more than ten hours outside the home, not be living in a hospital, convalescent home or other similar institution, and be fit to care.
There are no circumstances in which the carer's allowance is awarded without a means test.
