Dáil Éireann debate -
Wednesday, 30 Jan 2002

Vol. 547 No. 1

Written Answers. - Social Welfare Benefits.

Noel Ahern

Question:

868 Mr. N. Ahern asked the Minister for Social, Community and Family Affairs the reason unemployment assistance and unemployment benefit have the same payment rates; if a person entitled to unemployment benefit can now opt for unemployment assistance which will give fuel allowance and Christmas bonus; if not, the reason a person with a contribution record is being discriminated against and treated less favourably than a person on unemployment assistance; if he will reconsider the new situation; and if he will make a statement on the matter. [2907/02]

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

Prior to January 2002, whereas the long-term rate of unemployment assistance was the same as the unemployment benefit rate, the short-term rate of unemployment assistance was lower than that of other short-term social welfare payments, including unemployment benefit. With effect from January 2002, short-term unemployment assistance and supplementary welfare allowance rates have been brought into line with other short-term social welfare payments. This means that all short-term social welfare recipients on the maximum rate of payment now receive the same payment rate regardless of whether they have qualified on the basis of contributions or income.

Although the rate of unemployment assistance is the same as the unemployment benefit rate, the long-term rate of unemployment assistance attracts secondary benefits, for example, fuel allowance and Christmas bonus payments, which unemployment benefit does not. In addition, those on long-term unemployment assistance are entitled to child dependant increases for children in full-time education up to age 22 years.

Prior to 5 April 2000, a person who was entitled to the full rate of unemployment benefit was disqualified from receipt of unemployment assistance. This disqualification did not apply where a person was entitled to a reduced rate of unemployment benefit. In the latter circumstances, the person concerned could opt for unemployment assistance if, for example, he or she was eligible for a higher rate of payment than on unemployment benefit. However, a person on full-rate unemployment benefit, who had an underlying entitlement to long-term unemployment assistance, could not avail of that payment and the associated secondary benefits.

Provision was made in section 27 of the Social Welfare Act, 2000 to remove this disqualification and allow an unemployed person to qualify for payment under either scheme. These arrangements ensure that eligibility for a contribution based unemployment payment does not preclude a person from availing of unemployment assistance if he or she wishes to avail of that payment. For example, a person who is both entitled to full-rate unemployment benefit and the long-term rate of unemployment assistance, may now opt for the latter payment in order to avail of secondary benefits such as fuel allowance and Christmas bonus.