Vol. 533 No. 3
243 Mr. Naughten asked the Minister for Social, Community and Family Affairs if he will review the current system whereby a participant in a community employment scheme has his or her rent allowance reduced over a three year period during participation in the scheme; his views on whether this is a disincentive to the long-term unemployed taking up the scheme; and if he will make a statement on the matter. [8857/01]
The supplementary welfare allowance – SWA – scheme is administered on behalf of my Department by the health boards and neither I nor my Department have any function in deciding entitlement in individual cases. Under the terms of the SWA scheme payment of a weekly or monthly supplement may be made in respect of rent or mortgage interest to any person in the State whose means are insufficient to meet their needs.
SWA is subject to a means test. Rent supplements are normally calculated to ensure that a person, after the payment of rent, has an income equal to the rate of SWA appropriate to their family circumstances, less £6. This £6 represents the minimum contribution which recipients are required to pay from their own resources. Most recipients pay more than £6 towards their rent because applicants are required to contribute any additional assessable means that they have over and above the appropriate basic SWA rate towards their rent.
People on approved schemes can retain part of their rent or mortgage interest supplement, subject to a gross household income limit of £250 per week and certain other conditions. Following discussions with the social partners under Partnership 2000, substantial improvements in the conditions relating to the retention of rent and mortgage interest supplements were introduced from 6 April 2000.
The £250 per month limit on the amount of rent supplement payable was abolished and the sharp withdrawal of support at the end of the third year was removed, the supplement now being withdrawn on a tapered basis over a four year period, that is, 75% in year one, 50% in year two and 25% in year three and 25% in year four. As a result, many participants in CE schemes now retain a greater amount of rent supplement than they would have done under the earlier arrangements. This is particularly the case for families.
244 Mr. Stanton asked the Minister for Social, Community and Family Affairs if he will allow parents of full-time second level students who have reached their 19th birthday continue to avail of child benefit payments for as long as the student continues in full time second level education; the likely cost to the State that such a measure would entail; the number of students that might be involved; and if he will make a statement on the matter. [8867/01]
Child benefit is a universal payment which is payable in respect of all children up to the age of 16 years and continues to be paid in respect of children up to age 19 who are in full-time education, or who have a physical or mental disability. In addition, where a parent is receiving a pension or other long-term payment from my Department, child dependant allowances – CDAs – are paid up to age 22 where the young person remains in full-time education. In the case of short-term payments, CDAs are only paid up to the age of 18. As the Deputy is no doubt aware, the Government is committed to extending child dependant allowances to all social welfare recipients where the child is under 22 and in full-time education in the lifetime of the Programme for Prosperity and Fairness.
There are a number of difficulties inherent in the proposal put forward by the Deputy. Following the completion of the senior education cycle, many students pursue further second level education courses which can last up to three years, for example, post leaving certificate courses. The introduction of a provision whereby parents could continue to receive CB until the student completed second level education, regardless of the student's age, could have the effect of conferring CB entitlement on parents for an indefinite period. Furthermore, the proposed measure could raise equity issues in relation to third level students in the same cohort, who are not eligible for CB on reaching 19.
Any further improvements in the child benefit scheme would have to be considered in a budgetary context, in the light of available resources and existing commitments for the future development of the scheme. On the basis of Department of Education and Science data pertaining to 1 January 2000, it is estimated that some 32,000 students could become eligible for CB at a full year cost of approximately £23 million, if CB was payable until the completion of second level education.
