Dáil Éireann debate -
Thursday, 14 Feb 2002

Vol. 548 No. 4

Written Answers. - Social Welfare Benefits.

Frances Fitzgerald

Question:

182 Ms Fitzgerald asked the Minister for Social, Community and Family Affairs the reason a person (details supplied) in Dublin 6, receiving the supplementary welfare pension allowance has had the allowance reduced since the introduction of the euro. [5096/02]

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

The allowance in question is a diet supplement which is paid under the terms of the supplementary welfare allowance scheme. Under the terms of the scheme recipients of social welfare or health board payments who have been prescribed a special diet as a result of a specified medical condition and whose means are insufficient to meet their needs, may qualify for a diet supplement.

Entitlement to a diet supplement is determined by the health boards in accordance with the legislative provisions that specify the medical conditions in respect of which a diet supplement may be paid and the means test that must be applied. The amount of supplement payable depends on which of two categories of diet has been prescribed by the applicant's medical advisor, the age of the person and on the income of the individual and his or her dependants.

The basis of the calculation of the amount payable to a single person is that one third of their income is spent on food. The cost of one of the two categories of prescribed diets has been determined as being €34.28, £27 per week, while the cost of the other category has been determined as being €44.44, £35 per week. The purpose of the diet supplement is to make up the difference between these reference amounts and one third of the applicant's weekly income.

In addition, a further amount is included in the amount payable to take account of the fact that the application of annual budgetary increases in primary weekly payments would otherwise lead to a significant reduction in the rate of diet supplement payable in individual cases. The matter raised by the Deputy arises in the manner in which this adjustment is made. In this case, the individual in question is in receipt of disability allowance from my Department and diet supplement from the health board. The rate of disability allowance in payment prior to this year's budgetary increase was £85.50, equivalent to €108.56, while the rate of diet supplement in payment was £13.50, equivalent to €17.14. This added up to a total of £99, equivalent to €125.70 per week.

As I told the House on 6 December 2001, we are providing a general increase of £8.00 per week in respect of social welfare customers under pension-retirement age. The rate of disability allowance was set at €118.80 and the rate of diet supplement in this case was set at €17.10. This amounts to €135.90 in total, an increase of €10.20 or £8.03.

While the increase in the case highlighted by the Deputy is in line with the general increase announced in the budget, I am having the calculation mechanism for the diet supplement reviewed to ensure that the value of that element of the applicant's overall weekly payment is fully maintained.

Michael Creed

Question:

183 Mr. Creed asked the Minister for Social, Community and Family Affairs the estimated financial cost to his Department of sanctioning all persons over 80 of age for a non-contributory pension regardless of income; and if he will make a statement on the matter. [5142/02]

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

According to CSO projections for 2001, there are approximately 100,300 people aged 80 or over living in the State. It is estimated that there are just over 85,000 of these in receipt of social welfare payments. The estimated cost of paying old age non-contributory pension at the current maximum rate to the remaining 15,000 people is €108.5 million per annum.

However, there would be additional costs, in increasing the rate of payment to the maximum old age non-contributory pension for all pensioners over 80 who are currently on reduced pensions.