Dáil Éireann debate -
Wednesday, 20 Mar 2002

Vol. 550 No. 4

Written Answers. - Social Welfare Benefits.

Pat Rabbitte

Question:

514 Mr. Rabbitte asked the Minister for Social, Community and Family Affairs the action he proposes in respect of the recent decision to reduce the rent allowance according to a sliding scale for CE participants, thus forcing participants in certain circumstances to revert to unemployment assistance; and if he will make a statement on the matter. [8392/02]

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

The supplementary welfare allowance scheme is administered on behalf of my Department by the health boards and neither I nor my Department have 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 appro priate 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was abolished and the sharp withdrawal of support at the end of the third year was removed, the supplement now being withdrawn on a tapered basis over a four year period i.e. 75% in year one, 50% in year two and 25% in year three and 25% in year four.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. In addition, from 1 January 2002, I included participants on community employment schemes as qualifying for the part-time workers disregard for the purposes of rent supplement. This means that community employment participants in receipt of a rent supplement can now retain the first €50 of any additional income without affecting their rent supplement. This disregard was increased from €31.74 to €50 in the recent budget.

Up to January 2002 individuals were no worse off, in relation to rent supplement, by participating in a community employment scheme. These participants will now be better off because of the €50 disregard.

Michael Ring

Question:

515 Mr. Ring asked the Minister for Social, Community and Family Affairs if he will amend the qualifying criteria for an old age contributory pension to allow people who commenced paying social insurance contributions, at full or modified rate, before reaching age 56, regardless of where they made their contributions; if he will allow for those who have ten years Irish contributions and commenced paying social insurance contributions before reaching age 56 in the UK; and if he will make a statement on the matter. [8406/02]

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

To qualify for an old age contributory pension a person must have entered insurance ten years before pension age, achieved a minimum number of paid contributions, at the appropriate rate, and a yearly average of at least ten contributions, paid or credited over their working lives for a minimum pension, with an average of 48 contributions required for a full rate pension. Contributions made at modified rates do not provide cover for old age contributory pension.

There is already provision within the system to cater for people with contributions from other countries. This pension is based on a combination of full-rate Irish social insurance contributions and reckonable social insurance in other EU countries or countries with which Ireland has a bilateral social security agreement.

The pension is a pro-rata payment based on the proportion of Irish social insurance contributions to the total number of contributions paid and credited i.e. Irish and other insurance combined.

In general I consider that the position of people with social insurance contributions from the UK, other EU countries and countries with which Ireland has a bilateral social security agreement is already well catered for within the pension system. In the circumstances, there are no plans for changes at this point in time though the position will be kept under review.