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Dáil Éireann debate -
Wednesday, 1 Mar 2000

Vol. 515 No. 4

Written Answers. - Social Welfare Benefits.

Pat Rabbitte

Question:

54 Mr. Rabbitte asked the Minister for Social, Community and Family Affairs the review, if any, which has been completed under Partnership 2000 on the administration of rent allowance; and if he will make a statement on the matter. [6103/00]

I understand the Deputy is referring to the commitment in Partnership 2000 to modify the withdrawal rate of rent supplement, through the introduction of an appropriate tapering arrangement.

As the Deputy is aware the withdrawal of rent supplements paid under the supplementary welfare allowance, SWA, scheme could act as a disincentive to those seeking to take up employment in some cases. The primary difficulties relate to the weekly gross income limit and the rent and mortgage interest supplement cap of £250 per month as these limit the effectiveness of the two schemes, particularly for families with children.

The conditions for retention of secondary benefits, including the income limits and the ceilings on the amounts payable, were reviewed in consultation with the social partners in line with the Government's commitment under Partnership 2000.

Following those discussions, the Deputy may be aware that substantial changes to the conditions for the retention of secondary benefits by participants of the employment programme schemes were announced in budget 2000.

Family income supplement, FIS, and back to work allowance, BTW, payments will be disregarded for the purposes of the weekly £250 gross household income limit. In addition, the £250 cap on monthly rent-mortgage interest supplement will be abolished with effect from 6 April 2000 and the supplement will be tapered out over four years. Some 75% of the previous rate entitlement will be paid in year one, 50% in year two and 25% in years three and four.

Furthermore, people who take up part time employment or participate in training courses will have £25 of their earnings disregarded in the assessment of means for rent supplement.

These changes represent a substantial improvement for people making the transition from welfare to work.

Brendan Smith

Question:

55 Mr. B. Smith asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to increase the age limit for payment of child dependant allowance where the child is in full-time education; and if he will make a statement on the matter. [6201/00]

Child dependant allowances are payable in respect of all children up to the age of 18 years. Where a claimant is in receipt of a long-term social welfare payment, child dependant allowances are payable where children are in full-time education up to the age of 22 years, or up to the end of the academic year after the 22nd birthday. The more favourable treatment of people on long-term schemes reflects the fact that such families face a higher risk of poverty.

The proposed new partnership agreement, the Programme for Prosperity and Fairness, includes a commitment that the existing arrangements in respect of long-term social welfare claimants will be extended to also cover short-term social welfare claimants during the lifetime of the programme. I will be examining how best to implement this in the context of budget improvements over the next couple of years.

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