Vol. 544 No. 3
382 Mr. Wall asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the major problem that has arisen regarding employees on community employment schemes who are in receipt of rent subsidy allowance; and if he will investigate this problem and have it resolved. [28496/01]
The supplementary welfare allowance scheme is administered on behalf of my Department by the health boards and neither I nor my Department has 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 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.
The supplementary welfare allowance 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, 7.62. This £6, 7.62, represents the minimum contribution which recipients are required to pay from their own resources.
Most recipients pay more than £6, 7.62, 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.
SWA is not normally payable to people in full-time employment. However, arrangements have been in place for some years which allow people on approved employment schemes such as community employment, CE, to retain part of their rent or mortgage interest supplement, subject to a gross household income limit of £250, 317.43, 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, 317.43, 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was abolished and the sharp withdrawal of support at the end of the third year was removed, the supplement now being withdrawn on a tapered basis over a four year period, that is, 75% in year one, 50% in year two and 25% in year three and 25% in year four.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.
In no circumstances do the new rules result in a lower rate of rent supplement than is payable under the standard rules of SWA for participants of CE schemes. All participants in CE schemes are entitled to either the gradually reducing amount that can be retained under the transitional arrangements described above or the amount that is normally paid under the standard rules of SWA described earlier, whichever is the greater. The level of payments made to employers and employees under the CE scheme is a matter for my colleague, the Minister for Enterprise, Trade and Employment.
