Vol. 521 No. 4
211 Mr. G. Mitchell asked the Minister for Social, Community and Family Affairs if he will review the rules relating to the back to work scheme and the payments for rental subsidy in view of the concerns of a person (details supplied) in Dublin 22; and if he will make a statement on the matter. [17127/00]
The supplementary welfare allowance scheme, SWA, provides for a weekly or monthly supplement to be paid in respect of rent or mortgage interest to any person in the State whose means are insufficient to meet their needs. The scheme is administered on behalf of my Department by the health boards and my Department has no function in deciding entitlement in individual cases.
Rent and mortgage interest supplements are normally calculated to ensure that the person, after the payment of rent has an income equal to the SWA basic weekly payment rate, less £6. This £6 represents the minimum contribution which recipients are required to pay from their own resources.
SWA is subject to a means test and is not ordinarily payable to people in full time employment. However, arrangements have been in place for some years now to enable rent supplement recipients to retain their rent supplement on taking up employment, subject to certain conditions. Prior to 6 April 2000, any person who availed of my Department's back to work allowance scheme, job assist or other employment support schemes could retain their rent supplement for three years, subject to a maximum payment of £250 per month, provided their household income did not exceed £250 per week.
New conditions for the retention of rent and mortgage interest supplements were announced in budget 2000 and came into effect on 6 April 2000. These changes include disregards in the assessment of means and a tapered withdrawal of the supplement over four years. Existing recipients may opt for assessment under either the new arrangements or the previous arrangement, whichever is more beneficial to them.
The person concerned is on a back to work allowance scheme and is subject to maximum rent supplement of £250 per month. It is more beneficial for this person to continue to be assessed under the old rules for the retention of rent supplement.
These measures have been designed to assist and encourage people, some of whom are long-term unemployed, to make the transition from welfare into work. Previously a person would receive support at a constant level for the duration of the scheme and then be faced with a sharp drop when moving into full time employment. Under the new tapering system the withdrawal of the supplement is gradual over the duration of the scheme making the transition into full time employment easier.
