Alan Shatter
Question:35 Mr. Shatter asked the Minister for Social, Community and Family Affairs if he will increase the disability allowance to £100 per week as proposed by the National Representative Council. [14412/00]
Other Questions. - Social Welfare Benefits.
Last December's social welfare budget package was the biggest in the history of the State. Over £428 million on a full year basis provided, inter alia, for a £4 per week increase in social welfare payments in general, including disability allowance. In addition, special increases in the qualified adult allowance rates were provided as an overall strategy to increase the allowance to 70% of the main rate over the next three budgets. This means that the couple rate of disability allowance has been increased by £7.80 per week, an increase of 6.7%.
As part of the process of aligning tax and social welfare changes by 2001, these increases were paid four weeks earlier this year, from the beginning of May. This means that 51,200 recipients of disability allowance received their increased rates of payment four weeks earlier than in previous years.
In addition to the increases in the weekly rates, last December's budget also provided for a number of other improvements for people with disabilities, including the payment of full rate disability allowance to those in full-time residential care who are currently receiving a half rate payment, which has resulted in an increase of £40.70 per week in such cases; and a 50% increase, from £50 to £75 per week, in the amount of income from rehabilitative employment which is disregarded for disability allowance purposes. This enhanced disregard has also been extended to those in rehabilitative self-employment.
The submission made by the National Representative Council, which proposes increasing disability allowance to £100 per week, raises two separate issues, first, the adequacy of social welfare payment rates, and, second, the question of the additional costs associated with disability. With regard to the adequacy of social welfare rates, including the rate of disability allowance, it should be noted that the recently ratified Programme for Prosperity and Fairness provides that over the next three years all rates of social welfare will be increased in real terms and substantial progress will be made towards a target of £100 per week for the lower rates of payment.
Additional information
The NRC also proposed that the rate of disability allowance be increased to £100 per week so as to compensate for the additional costs associated with disability. However, the Commission on the Status of People with Disabilities recommended that such additional costs should be met through the introduction of a separate cost of disability payment to be administered by the Department of Health and Children, which would be paid regardless of the person's employment status.
As provided for under the Programme for Prosperity and Fairness, a working group is being established to examine the feasibility of introducing a cost of disability payment. This working group, which is being chaired by the Department of Health and Children and comprises representatives of the Department of Finance and the Department of Social, Community and Family Affairs, will consult with the social partners. The outcome of the work of this group will be important in informing future policy in this area and I look forward to receiving the results in due course.
Is the Minister ashamed that over the past three years, all that has been given to disabled people is £10 compared to an increase of £18 to people receiving old age pension? These are the facts. At a time when inflation is 5%, does the Minister believe that a £4 increase is justified and sufficient in this Celtic tiger economy? The Minister mentioned some benefits but there are many people with serious disability who want to live in rural Ireland but cannot because they cannot get support for a car unless they have lost a leg or suffered some other injury? They may be seriously disabled and those people should be looked after in a proper manner.
The real answer for people with disability is in relation to the proposal about the cost of disability payment. There is a commitment in the Programme for Prosperity and Fairness to set up a working group to examine that issue. A cost of disability payment will be paid by the Department of Health and Children rather than this Department.
In relation to the payments that were given, I suggest that the Deputy look no further than five years ago when he was on this side of the House and the Government of which his party was a member gave a 2.5% increase at a time when inflation was 2.5%. In effect, it gave no real increase to those people about whom he is now crying.
The Minister is comparing the arrangement for an old age pensioner who is quite capable of working in another job with a disabled person. Old age pensioners got an increase of £18.
Deputy Crawford, the time is very limited. Deputy O'Keeffe to ask another question before the Minister replies.
Is Deputy Crawford saying we should take that £18 and give it elsewhere?
No. There are many other funds. Does the Minister accept there is additional cost for the disabled? Does he accept that it is little consolation to somebody who is seriously disabled and needs help now to hear about another working party or committee that will be set up? A committee will not help that disabled person now. It is not good enough to deal with a real problem in that fashion.
Very significant improvements have been made in the position during the lifetime of this Government, not only the financial position and the income adequacy for people with disabilities but many other changes, particularly in the area of health. Before the former Minister, Deputy Cowen, left office he made substantial changes in last year's budget in relation to the issue of people with disabilities. Anywhere I go in the country he is complimented for what he did in that initiative in the last budget.
I must be living in a different country.
It is patently untrue for the Deputy to say that nothing is being done. Something is being done. It is all incremental and it will take some time, but ultimately a cost of disability payment will address many of the key issues which are addressing the problem of the additional costs for people with a disability.
What is the Minister doing with all the bouquets? Where is he putting them?
Question No. 36 is in the name of Deputy Shortall. As a number of these questions are oral questions the time allowed for them will conclude not later than 4.15 p.m.