Dáil Éireann debate -
Tuesday, 11 Apr 2000

Vol. 517 No. 6

Written Answers. - Social Welfare Benefits.

Bernard J. Durkan

Question:

56 Mr. Durkan asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the situation where recipients of disability allowance may find themselves on a reduced payment on reaching qualification age for old age pension; if he acknowledges that applicants in such cases should be paid the rate of the higher payment for which they qualified; if he proposes to continue this practice; and if he will make a statement on the matter. [10553/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

Disability allowance (formerly disabled person's maintenance allowance) is paid up to 66 years, at which stage a person becomes eligible for the old age (non-contributory) pension. Under the old age (non-contributory) pension scheme, means are generally assessed on a more favourable basis than they are under other social assistance schemes, including disability allowance. Accordingly, a person who had been in receipt of disability allowance would, in the normal course, qualify for the old age (non-contributory) pension on reaching 66 years, the rate of which would generally be higher than that which they had been receiving while on disability allowance.

However, there will be some cases where a person would qualify for an old age pension at a lower rate than disability allowance. For instance, a person's income position can change on reaching pension age, e.g. they or their spouse may qualify for an occupational pension or a social security pension from another State. Such income would be assessable for old age pension purposes.

I am also aware that there are a small number of cases where claimants for the old age (non-contributory) pension may be assessed with higher means than under the disability allowance scheme. This arises because of variations in the operation of the former disabled person's maintenance allowance scheme prior to its take-over by my Department.

The Deputy will be aware that the operation of the former disabled person's maintenance allowance scheme was the subject of much criticism. The variation in the application process was one of a number of problems with the scheme which were highlighted by many Deputies, representative groups and by the Commission on the Status of People with Disabilities. For example, the commission identified that the health boards dif fered widely in their application of eligibility and means testing criteria. They recommended therefore, that all disability payments should be provided for in legislation which makes clear that there is a legal right to payment.

The transfer of the disabled person's maintenance allowance scheme to my Department meant the scheme was brought within the scope of social welfare legislation. Accordingly, national standards apply so as to provide a legal entitlement to payment where the claimant fulfils the relevant conditions. There is also a right of appeal to the independent Social Welfare Appeals Office. In addition, since its transfer a range of improvements have been made in the eligibility and means test criteria under the disability allowance scheme.

With the improved eligibility criteria and the improved administration there has been a significant increase in the numbers in receipt of the allowance, from 34,500 in October, 1996 to almost 51,000 in February, 2000, i.e. an increase of 48%.

Nevertheless, it was recognised that even with these improvements, because of the variable way in which the former scheme had been operated, there would be some cases where people who had no statutory entitlement would have been in receipt of payment and others who were in receipt of payment at a higher rate than their statutory entitlements. It was for these reasons that transitional arrangements were introduced by my predecessor which provided that, on the take-over of the disabled person's maintenance allowance scheme in October 1996, nobody who had been in receipt of disabled person's maintenance allowance up until then would lose out solely because of the transfer over to disability allowance.

However, the transitional arrangements do not preclude entitlement being subsequently reviewed as part of the normal claims review process or if the person's circumstances have changed since the take-over of the scheme, e.g. if there is a change in their means or if they transfer to another social welfare payment. In these circumstances the normal eligibility criteria, as set out in the relevant social welfare legislation, would apply.