Dáil Éireann debate -
Tuesday, 7 Nov 2000

Vol. 525 No. 2

Written Answers. - Social Welfare Benefits.

Noel Ahern

Question:

743 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs if he will have a re-examination of an application for a back to education allowance made for a person (details supplied) who has been out of work for 11 months in view of the fact he was unable to continue working in the particular environment and in view of the fact it appears there has been a doubt even in the minds of his officials as to whether disability benefit or unemployment benefit was the appropriate benefit to be on which has now been verified by appeals office decision. [24333/00]

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

The back to education allowance is a second chance educational opportunities programme designed to encourage and facilitate certain groups, including people who have been unemployed for a certain minimum period, to improve their skills and qualifications with a view to returning to the active work force. To qualify for participation an applicant must, inter alia, be in receipt of a relevant social welfare payment for at least six months, 156 days, immediately prior to commencing an approved course of study. The person concerned was awarded unemployment benefit, which is a qualifying payment for the back to education allowance, with effect from 3 July 2000, a total of 75 days prior to commencing his course of study. Under the rules of the scheme he is not entitled to payment of the allowance.

The person concerned was in receipt of disability benefit from 11 November 1999 to 13 April 2000 when he was found fit for work by a medical referee of my Department. He appealed this decision and in October an appeals officer upheld the decision to disallow payment of this benefit.

Periods spent in receipt of disability benefit do not count towards satisfying the condition requiring a minimum of 156 days receipt of a qualify payment. There are, therefore, no grounds for revising the decision in this case.

Liam Aylward

Question:

744 Mr. Aylward asked the Minister for Social, Community and Family Affairs the reason a fuel allowance is not being paid to a person, (details supplied) in County Kilkenny. [24346/00]

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

The aim of the national fuel scheme is to assist householders who are on long-term social welfare or health board payments and who are unable to provide for their own heating needs. A payment of £5 per week, £8 per week in smokeless zones, is paid to eligible households for 26 weeks from mid October to mid April regardless of the temperature.

One of the conditions of the scheme is that the person must live alone or only with qualified dependants, a carer, a person in receipt of a short-term unemployment assistance payment or a person who qualifies for a fuel allowance in their own right.

The person concerned is in receipt of supplementary welfare allowance and is residing with his son who is in full time employment. In the circumstances he does not fulfil the living alone condition of the scheme and is not entitled to a fuel allowance.

Paul McGrath

Question:

745 Mr. McGrath asked the Minister for Social, Community and Family Affairs the way in which the rent allowance scheme applies to pensioners; if the threshold levels increase in keeping with increases in pension payments; and if he will make a statement on the matter. [24598/00]

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

Under the supplementary welfare allowance a weekly supplement may be paid in respect of rent or mortgage interest to people in receipt of social welfare or health board payments. Entitlement to a supplement is determined by the health boards and supplements are normally calculated to ensure that the person, after payment of rent or mortgage interest, has an income equal to the weekly rate of SWA appropriate to the family circumstances, less £6. This £6 represents the minimum contribution which a person is required to pay from their own resources towards accommodation costs.

In addition to the minimum contribution, all applicants, including pensioners, are required to contribute any assessable means in excess of the appropriate basic SWA rate towards their rent. When budget increases are applied, a rent or mortgage interest supplement recipient who gets an increase in their weekly payment which is greater than the increase in the basic rate of SWA will see a reduction in their rent or mortgage interest supplement equivalent to the difference in the two increases. These rules also apply to unemployed people and other rent supplement recipients who take up part-time employment.

Each health board is required to set reasonable maximum rent levels for various household types as a basis for calculating the maximum amount of rent supplement payable in each area under the supplementary welfare allowance scheme. The limits are set using local knowledge as to what constitutes a reasonable rent for private rented accommodation for various household types within and across the health board area. The limits take into account information received from local auctioneers and letting agents regarding average rents charged in the area.

These maximum rent levels are reviewed regu larly by the health boards to take account of the actual fluctuations in accommodation costs observed in each area. When accommodation is no longer available within these limits, rent levels are reviewed and revised upwards, at the initiative of the health boards, in the light of their experience in dealing with claims for rent supplement.

The manner of calculation of rent supplement will be examined as part of the review of the SWA scheme which is currently being undertaken as part of my Department's series of formal programme evaluations. A working group comprising officials from my Department and other relevant agencies has been established to carry out the review and a report is expected by the end of next year. Any proposals for changes in this area would have to be considered in a budgetary context.

Michael Ring

Question:

746 Mr. Ring asked the Minister for Social, Community and Family Affairs if he will amend the tapered qualified adult allowance arrangements which relate to the treatment of spouse's earnings per week, to remove the condition of the £70 per week to be earned over four days or more in view of the fact the four days regulation has a detrimental effect on many rural women. [24640/00]

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

Regulations provide for the tapered withdrawal of the qualified adult allowance for claimants of certain welfare payments where the spouse or partner of the claimant is earning between £70 and £135 per week.

The relevant social welfare payments are unemployment benefit, unemployment assistance, farm assist, disability benefit, disability allowance, pre-retirement allowance, injury benefit, unemployability supplement, invalidity pension, retirement pension and old age contributory pension.

The level of qualified adult allowance varies from one payment to another. So, in order to phase out the payment over the same income range (£70-£135) for all payments, the withdrawal rate varies with the level of qualified adult allowance, as follows:

Payment	QAA rate	Withdrawal rate
	£
Most payments, including UA, Farm Assist, UB, DA, PRETA	47.00	Where gross earnings are between £70 and £90 per week, QAA is reduced by £2.50 for each additional £5 earned; where gross earnings are over £90, QAA is reduced by £3.50 for each additional £5 earned.
Invalidity Pension
QAA under 66QAA over 66	53.0058.00	QAA reduced by £3.70 for each £5 of earningsQAA reduced by £4 for each £5 of earnings
Retirement/Old Age Contributory Pension
QAA under 66QAA over 66	60.2064.60	QAA reduced by £4.20 for each £5 of earningsQAA reduced by £4.50 for each £5 of earnings

The question raised by the Deputy relates to the treatment of spouse's earnings for the purpose of means-tested social assistance payments. In assessing the means of a claimant's spouse for such payments, account is taken of the spouse's net earnings, that is, earnings net of income tax, PRSI, health insurance contributions, superannuation and union dues. Currently, an income disregard of £30, plus travel costs, applies where the spouse-partner is working three days or less. A disregard of £70, inclusive of travel costs, applies where such employment exceeds three days per week.

As the Deputy is no doubt aware, the tapering arrangements which currently apply were improved substantially as a result of measures introduced following the 2000 budget. These measures were designed to ensure that, at the lowest levels of income, that is, where the spouse's earnings are below £95, the family is never worse off as a result of an increase in earnings. Additionally, the poverty trap arising from the withdrawal of the QAA combined with the assessment of the spouse's earnings in the case of recipients of social assistance payments, was further eased by the increase in the spouse income disregard from £45 to £70 where the employment exceeded three days per week.

Any further relaxation of the means test along the lines suggested by the Deputy would have financial implications and would have to be considered in a budgetary context, in the light of available resources and having regard to the Government's priorities.

Question No. 747 taken with Question No. 725.