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Dáil Éireann debate -
Thursday, 9 Nov 2000

Vol. 525 No. 4

Written Answers. - Social Welfare Benefits.

Austin Currie

Question:

12 Mr. Currie asked the Minister for Social, Community and Family Affairs the average time taken to process an application for a one parent family allowance payment; if it is possible to reduce the waiting time in view of the hardship and uncertainty being caused; and if he will make a statement on the matter. [25055/00]

Paul McGrath

Question:

17 Mr. McGrath asked the Minister for Social, Community and Family Affairs the time scales for the processing of applications to his Department for one parent family payments; and if he will make a statement on the matter. [25077/00]

I propose to take Questions Nos. 12 and 17 together.

The one parent family payment is a means tested payment which is intended to assist a lone parent who is bringing up a child or children without the support of a partner. In order to qualify for the one parent family payment, an applicant must satisfy a number of statutory conditions. He or she must have the main care and charge of at least one child, must not be cohabiting, must if earning, have gross earnings of less than £230.76 per week, equivalent to £12,000 per annum, and must satisfy a means test.

In addition, in appropriate cases, it is necessary to establish that efforts have been made to obtain maintenance from the former spouse or partner before a payment can be put into effect.

My Department has, as a priority obligation, to provide the best possible service to claimants under the various schemes and to process new claims in the fastest possible times. Over the past 12 months, the average number of weeks to decide a claim was 9.9 weeks in the case of claims from unmarried claimants and 13.8 weeks in the case of claims from separated claimants.

The number of new one-parent family payments claims has been increasing significantly over recent years and is currently averaging around 18,000 per annum – equivalent to about 350 per week. Also, due to significant improvements in the earnings exemptions for lone parents, more clients are remaining on one-parent family payment for a longer period. Due to the relatively young age profile and social circumstances of this group, they are more likely to move in and out of employment, education or training on a regular basis or to have other changes in their circumstances. This is a very positive development for lone parents but it requires significant work on revising existing claims each year to take account of these changes. Approximately 52,000 existing cases are expected to have to be reviewed at the clients' instigation this year.
A number of developments are under way to address this situation. My Department is engaged in a comprehensive review of its administrative staffing requirements and work priorities in its pension services office – where the one-parent family payment scheme is administered – to reflect the growing new claim and revision workload there.
Furthermore, and following on from the expenditure review of the one-parent family payment which was published in September 2000, it is intended to devolve the administration of the one parent family payment to the Department's network of local offices around the country. This development of the scheme is aimed primarily at making it more accessible to lone parents. It will also be of value in helping lone parents to access information about employment, education and training opportunities in their own area, through my Department's local employment support services. I would expect that this devolution of administration should assist in reducing claim processing times through closer linkage with the local investigative officer network.
A large majority of one-parent family payment applicants are in receipt of another social welfare payment while their claim is being processed. The main form of such support is supplementary welfare allowance or unemployment assistance while some would be in receipt of maternity benefit, unemployment benefit or disability benefit. This does not obviate the need to provide an efficient, courteous and speedy claim processing service to all one parent family payment applicants. I believe that the measures now being reviewed will bring about a measurable improvement in the quality and timeliness of service to one-parent family payment applicants in the future.

Michael Finucane

Question:

13 Mr. Finucane asked the Minister for Social, Community and Family Affairs his response to the recent review on the qualifying conditions for the old age contributory and retirement pensions; his views on whether changes are necessary; and if he will make a statement on the matter. [25043/00]

In August I launched a report on phase 1 of the review of the qualifying conditions for the old age contributory and retirement pensions. This report identified the key issues in relation to qualification conditions. It also sets out suggested guiding principles and outlines a framework for reform. The main proposals outlined in phase 1 of the review are: that a switch be accepted, in principle, from the current yearly average test to a system based on a total contributions approach whereby title to pension would be determined by the total number of contributions paid and credited during a person's working life; a switch be accepted, in principle, from the current system of disregards under the home maker's scheme to a credits based approach; that further recognition be given to contributions paid prior to 1953; and that improvements be made to the old age contributory-retirement pensions, reduced rates bands with a view to simplifying and rationalising these.

The results of the review were anticipated in relation to the last two recommendations mentioned, for example, further recognition of pre-53 contributions and rationalising of old age contributory-retirement pensions rate bands. Some 38,000 pensioners have benefited by the rationalising of the old age contributory pension rates structure with overall increases in weekly personal rates of pension ranging between £7.50 and £12.20.

Almost 2,600 new pensions have been awarded as a result of the further recognition now being afforded to pre-53 social insurance contributions with many people on pro rata pensions also having their position improved.

My Department is still processing applications for these new pensions.

The proposed switch towards a system based on total contributions represents a very significant change in approach for overall pensions policy.

Such a system would be more transparent, simpler and more easily understood by the general public.

The current system is based on the average level of contributions made each year over a person's working life and this has given rise to anomalies and problems.

Much work needs to be done before such a system could be introduced.

In particular, the appropriate level of contributions required for a pension needs to be determined and transitional arrangements will also have to be put in place.

These issues will be examined in the second phase of this review.

The report also examined the homemaker's scheme which was introduced in 1994.

Under this scheme periods spent caring for children or disabled relatives can be disregarded when a person's PRSI record is being assessed for old age contributory-retirement pension purposes. The review proposed that, in principle, the disregard approach should be replaced with one based on credited contributions.

The operative date of the homemaker's scheme was also examined and it was considered that there is no fundamental reason, in principle, why the homemaker provisions should only apply from 1994.

It was recognised that there are significant difficulties and cost considerations in determining an appropriate alternative earlier date. I am considering further the options.

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