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Dáil Éireann debate -
Tuesday, 21 Nov 2000

Vol. 526 No. 3

Written Answers. - Social Welfare Benefits.

Thomas P. Broughan

Question:

332 Mr. Broughan asked the Minister for Social, Community and Family Affairs the number of claimants to date of carer's benefit; the overall cost of the benefit in 2000; and the cost of moving the yearly increase in the benefit forward to April 2001. [26602/00]

The carer's benefit scheme came into operation on 26 October this year. As at 16 November, a total of 60 claims for the benefit have been received and there were 11 persons in receipt of a payment. Some 15 claims have been refused and a further 34 applications are currently being processed or have been approved for payment at a future date. In this regard, claimants are advised to apply for carer's benefit prior to leaving employment to take up full time caring duties. Expenditure on the scheme in 2000 will be in the region of £50,000.

As increases, if any, in the rate of payment applicable to carer's benefit will be announced as part of budget 2001 it is not possible to estimate the cost of such increases in a full year or in respect of any period in 2001. It should be noted that the Government is committed to completing the process of bringing forward the dates of social welfare budget increases to coincide with the beginning of the tax year. Increases in weekly rates will therefore apply from early April in 2001. In addition, the Government has already announced that increases in the weekly rates of payments in 2002 will be further brought forward to early January 2002 so as to coincide with the beginning of the 2002 tax year following the alignment of the tax and calendar years with effect from that year.

Thomas P. Broughan

Question:

333 Mr. Broughan asked the Minister for Social, Community and Family Affairs the additional cost of increasing the carer's respite grant by each £100 in 2001. [26603/00]

Thomas P. Broughan

Question:

340 Mr. Broughan asked the Minister for Social, Community and Family Affairs the cost of doubling the earnings disregard for recipients of carer's allowance in 2001. [26610/00]

Thomas P. Broughan

Question:

346 Mr. Broughan asked the Minister for Social, Community and Family Affairs the annual cost of introducing a universal cost of care allowance to be paid on a monthly basis at the rate of £100; and if he will make a statement on the matter. [26770/00]

It is proposed to take Questions Nos. 333, 340 and 346 together.

The carer's allowance is a means tested payment for carers on low income who look after people in need of full-time care and attention.

As part of the Government's commitment to carers, as set out in its Action Programme for the Millennium, and arising from the review of the carer's allowance which was published by my Department in October 1998, I introduced major improvements to the carer's allowance scheme in the 1999 and 2000 budgets.

Based on the research carried out in the review, the number of full-time carers is estimated to be 50,000, covering carers of older people and adults and children with disabilities. At the end of October 2000, there were 16,176 carers in receipt of carer's allowance. These figures indicate that 32 per cent of full-time carers are in receipt of a carer's allowance payment which is an increase of 75% in the number of carers in receipt of the allowance since this Government took office. This large increase is reflected in the expenditure on carer's allowance, which was £36.5 million in 1997 and is projected to be £78.3 million this year, representing an increase of 115%.

One of the many measures I introduced in 1999 was a new annual respite care grant and in budget 2000 I made provision to increase this grant from £200 to £300. This grant is payable to all carers in receipt of carer's allowance and to carers who are caring for recipients of a constant attendance or prescribed relative's allowance to use in whatever way they choose. It is estimated that to increase the grant by £100 would cost an additional £1.6 million based on the current number of 16,000 carers in receipt of carer's allowance. There has been very positive feedback on this payment and I will keep its operation under review.

The review also examined the issue of a cost of care allowance and considered it to be within the remit of the Department of Health and Children. It is similar to the requests for a cost of disability payment which the Commission on the Status of People with Disabilities recommended should be introduced by the Department of Health and Children. However, the estimated cost of introducing a monthly universal cost of care allowance of £100 would be in the region of £60 million based on the current number of carers.

As with all other social assistance schemes, a means test in which the income of both the applicant and his or her partner is assessable is applied to the carer's allowance to ensure that resources are directed to those in greatest need. The means test has been eased significantly in the past few years, most notably with the introduction of disregards of income from employment and other sources. The effect of these changes mean that a couple with two children could have a joint annual income of £9,152 and qualify for the maximum carer's allowance while a couple with up to £19,500 could still qualify for a minimum carer's allowance, and also receive an annual respite care grant and the free schemes. The information requested by the Deputy in relation to the cost of increasing the earnings disregards is not available at this time. I am arranging for the information to be supplied to the Deputy as soon as it is available.
The position in regard to the means test will be kept under review.

Thomas P. Broughan

Question:

334 Mr. Broughan asked the Minister for Social, Community and Family Affairs the additional cost of increasing child dependant allowances by each £1 in 2001. [26604/00]

It is estimated that increasing all child dependant allowance rates by £1 in 2001 would cost an additional £20 million in full year terms. The increases in social welfare weekly payments are due to be paid in April 2001 and assuming any increase in child dependant allowances would be paid from the same date, the cost for each £1 increase would be approximately £15 million in 2001.

Thomas P. Broughan

Question:

335 Mr. Broughan asked the Minister for Social, Community and Family Affairs the total size of the social welfare budget in 1995, 1996, 1997, 1998, 1999 and 2000 in absolute terms; the size of the budget as a percentage of GNP and GDP for each of the years in question. [26605/00]

Thomas P. Broughan

Question:

336 Mr. Broughan asked the Minister for Social, Community and Family Affairs the total size of the social welfare budget in 2001 if (i) the ratio of social welfare budget to GDP was maintained at 2000 levels, that is, if the social welfare budget expanded in line with the likely expansion of the economy and (ii) if the social welfare budget increased in line with expected inflation. [26606/00]

It is proposed to take Questions No. 335 and 336 together.

Total social welfare expenditure for the years 1995 to 2000 and the percentage relationship with GNP and GDP in each of the years in question is set out in the table below.

If the estimated percentage relationship between social welfare expenditure and GDP for 2000, that is 6.7% were to be maintained in 2001, total social welfare expenditure would be in the region of £5.980 billion.
However, as GDP includes repatriated profits from overseas companies operating in Ireland, GNP is generally recognised as the more representative indicator of changes in economic activity. Accordingly, if the estimated percentage relationship between social welfare expenditure and GNP for 2000, that is, 7.9%, were to be maintained in 2001, total social welfare expenditure would be in the region of £5.874 billion.
While the recently published Estimates provide for total social welfare expenditure of £5.568 billion for the year 2001, it should be noted that this figure represents the pre-budget allocation and does not take account of the increases in social welfare for 2001 to be announced by the Minister for Finance in the budget in early December.
It should also be noted that, since entitlement to social welfare payments is based on a range of contingencies such as old age, unemployment, birth of children, etc., the overall amount paid in any year is not related to the overall size of GNP or GDP. The significant reduction in unemployment coupled with the still relatively low proportion of older people have served to contain the growth in social welfare expenditure despite substantial payment rate increases at a time when GDP-GNP is growing at record levels.
Finally, as the expected rate of inflation for 2001 will only be announced by the Minister for Finance in the December budget, it is not possible at this stage to give an estimation of total social welfare expenditure for 2001 increased in line with inflation.

TotalSocialWelfareExpenditure(£ billion)

TotalSocialWelfareExpenditureas % of GNP

TotalSocialWelfareExpenditureas % of GDP

1995

4,199

11.5%

10.2%

1996

4,377

10.9%

9.7%

1997

4,524

9.9%

8.7%

1998

4,763

9.1%

8.0%

1999

4,948

8.4%

7.2%

2000*

5,327

7.9%

6.7%

*Estimated
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