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Dáil Éireann debate -
Wednesday, 7 Nov 2001

Vol. 543 No. 3

Written Answers. - Social Welfare Benefits.

Seán Ryan

Question:

64 Mr. S. Ryan asked the Minister for Social, Community and Family Affairs the progress which has been made to date by the social welfare benchmarking and indexation working group; when it is expected that the report will be finished and published, having regard to his statement to Dáil Éireann on 4 July 2001 that the group was aiming to conclude its deliberations by the end of that month; and if he will make a statement on the matter. [26836/01]

The social welfare benchmarking and indexation group completed its deliberations in early August of this year. Arrangements for the formal publication of the group's final report are currently in hand. In the interim, however, I arranged for copies of the report to be placed in the Oireachtas Library and it is available also from my Department's website. The working group was established under the terms of the PPF and was asked to examine the issues involved in developing a benchmark for adequacy of adult and child social welfare payments, including the implications of adopting a specific approach to the ongoing uprating or indexation of payments. The group was also required to examine the issue of relative income poverty. The report is a comprehensive account of the many complex issues associated with the benchmarking and indexation of welfare payments and will represent a valuable input to policy development in this area for the future. The findings and recommendations contained in the report will also receive careful consideration in the context of the forthcoming budget.

Pat Rabbitte

Question:

65 Mr. Rabbitte asked the Minister for Social, Community and Family Affairs the number of social welfare recipients who will not be paid increases as planned from the beginning of January 2002; the reason the increases will not be paid on schedule; when the arrears of payments will be made; the anticipated average payment to be made; and if he will make a statement on the matter. [26819/01]

The budget announcement for 2002 will take place on 5 December 2001. From next year the income tax year and calendar year will be the same, commencing on 1 January. Tax changes will apply from the beginning of January while increases in social welfare weekly payments will be payable from the pay day in January 2002.

When this Government came into office in 1997, budget increases in weekly social welfare payments were payable for 29 weeks, that is, from early June. Child benefit increases were payable for three months, that is, from September. Over the last four years I have ensured that social welfare recipients receive their Budget increases earlier. For example, this year's increases in weekly payments were payable for 39 weeks, i.e. from the first week in April, in line with changes in the tax code. Child benefit increases became effective three months earlier, that is, from June 2001. Some 270,000 short-term recipients, mainly unemployment and illness recipients and supplementary welfare recipients, are paid weekly by cheque and electronic forms of payment via the integrated short-term scheme computer system. Budget increase payments to 99% – 267,500 – of these customers will be made on time, while the remaining 1% – 2,500 customers – will receive the bulk of their increase on time with a small balancing arrears payment to follow in February.

Book-based payment systems, which are the chosen payment option for the majority of pensioners and other long-term beneficiaries, are less flexible than other payment methods and require longer lead-times to implement increases. Around 623,000 social welfare customers receive their payment by means of pension order books and all of these books are currently in payment and in the possession of those customers. For four of the schemes involved, representing about 20,000 beneficiaries, it will be possible to pay the budget increases on time in January. These schemes are family income supplement, disability benefit, rent allowance and carer's benefit. In the case of the other book-paid schemes, which represent around 600,000 beneficiaries, the currency of the orders in the books runs into next year and the orders carry values based on the rates now applying. It is not physically possible to recall all these books and print new ones with the new rates and have them back with customers for cashing between 5 December 2001 and 1 January 2002, a period of less than four weeks.
My Department has examined all possible options to ensure that the payment of the new rates is done as quickly as possible and as close as can be to the date on which they are due and the proposed arrangements are the best response possible in the time available. A lump sum payment will be included in the first order in the new books for 210,000 customers in early February 2002. A further 393,000 who are not due to get new books until April 2002 will receive a special single order book in mid-February 2002 containing arrears for six weeks and an advance payment for seven weeks to bring them up to the date on which their new books arrive. This means all beneficiaries will be in receipt of payments at the new rates from the middle of February at latest. As the budgetary rates are not decided it is not possible to give examples of the amounts involved in those cases where arrears will be payable.
Question No. 66 answered with Question No. 8.

Thomas P. Broughan

Question:

67 Mr. Broughan asked the Minister for Social, Community and Family Affairs if, in budget 2002, he will consider extending the bereavement grant to citizens with a disability who may be currently excluded. [26853/01]

The bereavement grant, formerly the death grant, is a payment based on PRSI contributions, designed to assist families in dealing with death and funeral expenses. The grant is payable on the death of: an insured person; the wife or husband of an insured person; the widow or widower of an insured person; a child under age 18, or under age 22 if in full-time education, where either parent or the person that the child normally lives with satisfies the PRSI contribution conditions; a contributory pensioner; the wife or husband of a contributory pensioner; the qualified adult of a contributory pensioner, including those who would be a qualified adult but are getting another social welfare payment, for example, carer's allowance; a qualified child; an orphan in receipt of orphan's contributory allowance.

The bereavement grant was totally redesigned in 1999 to provide for a five-fold increase in the rate of payment from £100 or 127 to the current rate of £500 or 635. In addition, the payment was extended to include self-employed PRSI contributors and those covered by the modified rate of social insurance in addition to those paying full-rate PRSI contributions. A person who has insufficient PRSI contributions will not qualify for a bereavement grant. However, there are other measures in place that are designed to assist people in the immediate aftermath of bereavement, for example, the payment of six weeks' social welfare following the death of certain social welfare recipients or their spouse. In addition, under the supplementary welfare allowance, a health board may make a single payment to help meet essential, once-off exceptional expenditure which a person could not reasonably be expected to meet out of his/her weekly income. These payments, known as exceptional needs payments, may be made towards funeral expenses where it is established that there is an inability to meet the costs by the family concerned. The current arrangements are kept under review in a budgetary context.
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