Written Answers. - Social Welfare Benefits.
Bernard Allen
Question:
162
Mr. Allen
asked the
Minister for Social, Community and Family Affairs
if he will make a statement on the situation where the Southern Health Board was wrongly tapering rent allowance for community employment workers under Circular 3/00, which was pointed out to it by his Department; the steps he has taken to ensure that the board has contacted people regarding this serious error; and if he will publish an advertisement to make people aware of their rights.
[7372/02]
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 supplementary welfare allowance 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.
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 supplementary welfare allowance appropriate to their family circumstances, less €7.62. This €7.62 represents the minimum contribution which recipients are required to pay from their own resources. Many recipients pay more than €7.62 towards their rent because applicants are required to contribute any additional assessable means that they have over and above the appropriate basic supplementary welfare allowance rate towards their rent. Supplementary welfare allowance is not normally payable to people in full-time employment. However, special arrangements have been in place for a number of years now which allow people on approved schemes such as community employment to retain part of their rent or mortgage interest supplement, subject to a gross household income limit of €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 €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was abolished and the sharp withdrawal of support at the end of the third year was removed, the supplement now being withdrawn on a tapered basis over a four year period, that is, 75% in year one, 50% in year two and 25% in year three and 25% in year four.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 community employment 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 supplementary welfare allowance. All community employment recipients are entitled to either the gradually reducing amount that can be retained under the transitional arrangements or the amount that is normally paid under the standard rules of supplementary welfare allowance, whichever is the greater.
The Southern Health Board was contacted regarding this situation and they have advised that when this issue was brought to their attention they examined their records and identified all cases where a rent supplement was being paid to persons on community employment schemes.
The board has commenced a review of every case to ensure that the terms of Circular 3/2000 were correctly applied. Persons who may have been affected will be contacted individually and arrangements made for the payment of any arrears due without delay.
