Dáil Éireann debate -
Thursday, 9 Nov 2000

Vol. 525 No. 4

Written Answers. - Social Welfare Benefits.

David Stanton

Question:

56 Mr. Stanton asked the Minister for Social, Community and Family Affairs the number currently in receipt of farm assist; the number receiving various rates of payment; the amount paid out under the scheme in 1999; the projected amount to be paid out in 2000; if he has satisfied himself that all those who are entitled to receive payments under the scheme are benefiting; the plans he has to further amend or enhance the scheme; and if he will make a statement on the matter. [25081/00]

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

There were 7,685 persons in receipt of farm assist as of 3 November 2000, of whom 7,262 had other income assessed and were in receipt of appropriately reduced rates of payment. A residue of 225 claimants are still in receipt of smallholders unemployment assistance pending completion of reviews of their entitlements. The average weekly payment to recipients of the former smallholders assistance payment is £92.88 and to new applicants £71.80. In 1999, total expenditure in respect of the farm assist scheme amounted to £15.6 million, while £13.8 million was paid out under the former smallholders unemployment assistance scheme. It is estimated that expenditure on the farm assist scheme will reach some £35 million by the end of 2000.

In relation to the numbers on the scheme, it should be borne in mind that the numbers receiving smallholders unemployment assistance had for various reasons declined from 9,900 in 1995 to 6,600 in 1998, that is by more than 1,000 per year. It seems likely that this decline would have continued so that the 7,900 now receiving payments reflects a significant reversal of the trend in numbers who benefit from support. Therefore, that the scheme has brought about a worthwhile improvement for low income farmers and particularly for those with children.

The scheme has been well publicised through numerous press releases, extensive promotion by the farming organisations, coverage in both the national and farming media, advertising and State agencies such as Teagasc. Application forms are available in all my local offices.

The Social Welfare Act, 2000, made a number of important changes to the means test for the farm assist scheme. The child related disregards have been increased from £100 to £200 for the first two children and £200 to £300 for each subsequent qualified child.

Furthermore, instead of 80%, only 70% of self-employment income, including off-farm self-employment, is now being taken into account in the assessment of means. There are also changes in the way capital is assessed, with the first £10,000 held by a claimant disregarded, and the balance treated more favourably than heretofore. The effect of these changes is that the majority of farm assist claimants received an increase, from October, in their payment.

The scheme clearly makes a valuable contribution to supporting those who are at the lower end of the farm income spectrum.

Question No. 57 taken with Question No. 9.