Dáil Éireann debate -
Wednesday, 20 Mar 2002

Vol. 550 No. 4

Written Answers. - Social Welfare Benefits.

Michael Ring

Question:

536 Mr. Ring asked the Minister for Social, Community and Family Affairs the position regarding benefits attributed to long-term payments to be attributed to people who have been receiving a short-term payment for over 12 months; and the amount this would cost. [8695/02]

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

I assume the Deputy is referring to the ancillary benefits which are targeted at people on long-term social welfare payments in general, and not those which are available only to certain categories of long-term clients, for example, pensioners. The ancillary benefits in question are fuel allowance, Christmas bonus and extended payment of child dependant allowance.

The national fuel scheme provides for the payment of fuel allowances, subject to a means test, to people on long-term social welfare or health board payments who are unable to provide for their own heating needs. A standard allowance of €9 per week is currently paid to eligible households during the fuel season, which runs for 29 weeks from early October to late April. A smokeless fuel allowance of €3.90 per week is paid in smokeless zones. This latter allowance is also available to some people on short-term payments.

Christmas bonus payments are provided by my Department to people in receipt of certain long-term social welfare payments to alleviate hardship due to the additional demands on people's resources at Christmas time. The Christmas bonus has been paid at a rate equivalent to 70% of a person's normal weekly payment, subject to a minimum payment of €25.39 since 1989. In 2000, the bonus was increased to 100% or double the person's normal weekly payment, again subject to a minimum payment of €25.39, and was paid on a similar basis in 2001.

In regard to child dependant allowances, the position is that where a parent is receiving a pension or other long-term payment from my Department, CDAs are payable up to the age of 22 years or up to the end of the academic year after the 22nd birthday, where the young person remains in full-time education. At present these arrangements do not apply to short-term payments such as disability benefit or unemployment benefit. In the case of short-term payments, CDAs are currently lost as soon as the young person reaches their 18th birthday. As a first step towards increasing the age limit to 22, as promised in the Programme for Prosperity and Fairness, with effect from April, child dependant allowances are being extended until the end of the academic year in which the young person reaches 18 years.

It would cost in the region of €8.2 million in a full year to extend the above supports to those receiving short-term payments for 12 months or more. This includes the cost of raising the CDA age limit to 22 years for recipients who have children over 18 years in full-time education which is estimated at under €0.9 million.

Gerry Reynolds

Question:

537 Mr. G. Reynolds asked the Minister for Social, Community and Family Affairs the benefits derived by persons who pay self-employed PRSI; and if he will make a statement on the matter. [8753/02]

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

Self-employed persons pay PRSI contributions at class S which gives cover for old age contributory pension, widow's or widower's contributory pension, maternity benefit, adoptive benefit, orphan's contributory allowance and bereavement grant.

The degree of cover available to class S contributors is reflected in the rate of contribution payable. Class S contributors pay social insurance contributions at a rate of either 3% or 5%, depending on earnings, whereas the combined employee and employer rate applicable to class A contributors varies as between 8.5%, 14.75% and 16.75%, depending on earnings.