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Dáil Éireann debate -
Wednesday, 26 Jun 2002

Vol. 553 No. 6

Written Answers. - Social Welfare Benefits.

Seán Crowe

Question:

263 Mr. Crowe asked the Minister for Social and Family Affairs the estimated number of recipients of disability benefit for a period of six months or more. [14920/02]

The total number of people in receipt of disability benefit, as of 22 June 2002, is 52,938.

Of this total, 34,233 recipients are in payment for six months or more.

Denis Naughten

Question:

264 Mr. Naughten asked the Minister for Social and Family Affairs her plans to address the financial crisis facing many widows in respect of a non-contributory pension; if she intends to address the child dependant allowance rate for widows; if she will allow such claimants to work a limited number of hours per week; and if she will make a statement on the matter. [14921/02]

Widows and widowers who do not qualify for the widow-widower's contributory pension, subject to the means test, qualify for one-parent family payment if they have dependent children, or for widow-widowers non-contributory pension if they do not have dependent children. The maximum rates of payment under both schemes are €118.80 per week for those aged under 66 and €134 per week for those aged over 66. The increase in respect of a qualified child, where payable is €19.30 per week.

Under the means test associated with the one-parent family payment, a recipient is entitled to earn up to €146.50 without affecting his or her payment. Earnings between €146.50 per week and €293 per week are assessed at 50% and the rate of one-parent family payment paid is reduced accordingly. Payment ceases when earnings exceed €293 per week. However, there are transitional arrangements in place whereby a recipient of the one-parent family payment who exceeds the upper income limit may retain 50% of his or her entitlement for a further 12 months.

Widows and widowers without children, who are in receipt of the widow-widower's non-contributory pension may, since April of this year avail of the back to work allowance. The back to work allowance provides a financial cushion to help people return to work. Participants in the scheme retain a decreasing percentage of their social welfare payment for three years while engaged in employment or self-employment. Where household income is less than €317.43 per week secondary benefits are also retained for three years.
In relation to child support payments generally, the main vehicle for such support is the child benefit scheme which is neutralvis-à-vis the employment status of the parents and does not contribute to poverty traps. Budget 2001 provided for a multi-annual programme of increases designed to substantially enhance the value of child benefit payments. The first phase of increases delivered in June 2001 increased annual expenditure on the scheme to €1,143 million. Payment of the second instalment in April 2002, represented a further additional investment of €413.8 million.
Child benefit is now paid at €85.80 per month in respect of each of the first and second children and €177.60 in respect of each of the third and subsequent children. By the end of the process, the amount invested in the scheme by the State will have increased threefold to some €1.9 billion.

Jack Wall

Question:

265 Mr. Wall asked the Minister for Social and Family Affairs if she will investigate the farm assist programme as operated by her Department to take into account the present difficulties being encountered by farmers; and if she will make a statement on the matter. [14922/02]

The farm assist scheme is a means tested scheme to provide ongoing income support for farmers on low income. In calculating means for the purposes of farm assist, account is taken of the gross yearly income which the farmer and his or her spouse-partner may reasonably expect to receive less any expenses necessarily incurred in carrying on the business. In addition, where the farmer has dependent children, €253.95 per annum is disregarded in respect of each of the first two qualified children and €380.92 each per annum for subsequent children. Some 70% of the remaining net income is then assessed.

The assessment of the expected annual income is based on normal output and costs appropriate to normal stock levels, capacity and market trends. While the income and expenditure figures for the preceding year are generally used as an indicator of the position, account is taken of any exceptional circumstances such as exceptionally adverse weather conditions, so as to ensure that the assessment accurately reflects the current situation.

Where, at any stage, a farmer feels that his or her circumstances have changed since the most recent means assessment, in his or her case, it is open to him or her to request a means review. Where a farmer disagrees with a means assessment, he or she may appeal the decision to the social welfare appeals office.
I am satisfied the current method of assessment for farm assist purposes is adequate to deal with any downturn in business caused by exceptional circumstances such as poor weather conditions, and that farmers with difficulties can be catered for within the current arrangements for the assessment of means. I will keep the matter under review.
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