Dáil Éireann debate -
Wednesday, 13 Dec 2000

Vol. 528 No. 2

Written Answers. - Social Welfare Benefits.

Ivor Callely

Question:

44 Mr. Callely asked the Minister for Social, Community and Family Affairs the measures which can be taken to reduce the number of people in receipt of interim payments as referred to in Parliamentary Question No. 63 of 11 April 2000; the likely total cost of interim payments in the year 2000 to date and comparison figures for 1995; and if he will make a statement on the matter. [29677/00]

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

The supplementary welfare allowance, scheme is administered on my behalf by the health boards. Under the SWA scheme, health boards can provide a basic weekly payment to eligible people who have little or no income. An assessment of a person's means and needs is carried out and where there is a shortfall in a person's income a payment may be made to bring that person's income up to the appropriate supplementary welfare allowance rate.

Payments are made where a person has no means to meet their immediate needs pending payment from another source, for example, where they are awaiting determination of an application for a social welfare or health board payment. Any interim payment which is awarded pending the determination or payment of a social welfare or health board payment is fully recoverable from the arrears once the other payment is awarded.

As part of an ongoing programme of initiatives to improve customer service my Department has been examining measures to expedite the processing of claims for unemployment benefit and assistance in our network of local offices.

Improvements have been recently introduced, on a pilot basis, in a number of social welfare local office areas in one region in co-operation with the local health board. This approach has led to a significant reduction in recourse to supplementary welfare allowance. It is hoped to extend these measures on a more widespread basis as soon as possible.

Following on from the expenditure review of the one-parent family payment which was published in September 2000, it is intended review the administration of the one-parent family payment which would include interim payments for that scheme.

Details of overall interim SWA payments made while awaiting a payment from my Department for the years 1995 to 2000 are included in the following tabular statement. The increase in expenditure is the result of the increases in payment rates rather than an increase in the number of payments made.

Year	Expenditure£
1995	17,099,768
1996	21,446,478
1997	28,852,890
1998	33,159,022
1999	41,908,108
2000 (to date)	46,827,889

Question No. 45 taken with Question No. 36.

Michael Finucane

Question:

46 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. [29681/00]

Michael Noonan

Question:

73 Mr. Noonan asked the Minister for Social, Community and Family Affairs if he will outline Government policy and conditions in place in relation to the homemaker's scheme; if he will extend this scheme; the number currently benefiting; the estimated number of those who have spent time caring who are ineligible; and if he will make a statement on the matter. [29687/00]

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

I propose to take Questions Nos. 46 and 73 together.

The Government is committed to ensuring the broadest possible contributory pension cover to as many categories as possible, and recognises that people who leave the workforce to undertake family responsibilities in the home may lose out in maintaining their social insurance record.

For this reason, special arrangements are in place to assist those who work in the home to qualify for an old age contributory pension. From 6 April 1994, periods of time spent out of the workforce, including self employment caring either for children aged up to six years or incapacitated people are ignored or disregarded when calculating a person's pension entitlements.

The Social Welfare Act, 1996, extended the homemaker provisions by increasing the age of children being cared for from six to 12 years.

For any year to be disregarded a homemaker must be out of the workforce for a complete year, 52 weeks, from 6 April 1994. The maximum period which can be disregarded is 20 years.

Provision is also made for the award of credited contributions in the year in which a person commences or ceases to be a homemaker. In addition, earnings of up to £30 per week where a person is engaged in part-time employment outside the home are also permitted.

A total of 3,998 people are formally registered under the homemaker's scheme, comprising mainly people caring for elderly-sick relatives who do not qualify for carer's allowance. Those caring for children would be certified through child benefit records and do not need to formally register for the scheme. Statistics regarding those currently ineligible for the homemaker's scheme are not available.

In August I launched the report on phase one 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. In summary, the main proposals outlined in phase one of the review are 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 homemaker's scheme to a credits-based approach; further recognition be given to contributions paid prior to 1953; and improvements be made to the old age contributory-retirement pensions reduced rates bands with a view to simplifying and rationalising these.

In budget 2000 the results of the review were anticipated in relation to the last two recommendations mentioned i.e. further recognition of pre-53 contributions and rationalising of old age contributory-retirement pensions rate bands. Some 38,000 pensioners benefited from 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 3,300 new pensions have been awarded as a result of the further recognition now being afforded to pre-53 social insurance contributions with many people onpro 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. However, I feel that 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.

However, 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; however, there are significant cost and operational issues to be considered. As outlined in my recent speech on the budget, I am strongly committed to implementing these proposals. Phase two of the review, which will get under way in the new year, will consider the most appropriate way of achieving these. When implemented these measures should help many more people to qualify for pensions.