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Dáil Éireann debate -
Wednesday, 29 Jan 2003

Vol. 560 No. 1

Written Answers. - Social Welfare Benefits.

Martin Ferris

Question:

995 Mr. Ferris asked the Minister for Social and Family Affairs if she will further increase disability benefit above the ?6 proposed in the budget, in view of the better than expected surplus in Government revenue. [1559/03]

A broader objective of the 2003 social welfare package is to protect the position of the less well off in our society. Budget 2003 made provision for an increase of €6, or 5.1%, in the weekly personal rate of disability benefit, with an additional increase of €4, also 5.1%, in the weekly rate of qualified adult allowance, where payable. The Social Welfare Act 2002 brought these increases into effect from the first week in January.

Overall, an additional €833 million in social welfare spending is provided for during this year, and this will bring the projected level of annual spending to over €10 billion for the first time. At a time of great economic uncertainty, this emphasises the Government's commitment to protecting those at highest risk. My colleagues and I are committed to safeguarding the position of all social welfare recipients and I look forward to making further progress in the years ahead on the achievement of our social inclusion commitments.

Willie Penrose

Question:

996 Mr. Penrose asked the Minister for Social and Family Affairs if she has received correspondence from a person (details supplied) in County Dublin; if, in that context, she will consider exemptions to the criteria which she has recently changed, in relation to the back to work allowance scheme in view of the points made in the correspondence; and if she will make a statement on the matter. [1565/03]

The range of employment support services administered by my Department was reviewed last year in the light of the major economic and labour market changes that have occurred since the scheme was introduced. When the back to work allowance was introduced the overall unemployment level was 15.7% and long-term unemployment stood at 8.9%. By 2001 overall unemployment had fallen to 3.7% and long-term unemployment was down to 1.2%.

The review also took cognisance of an independent evaluation of the scheme carried out by consultants which was published in December 2000. The report recommended, in the light of the current tight labour market situation, that the scheme be refocused on the longer-term unemployed, that the non-financial supports be enhanced and that the overall numbers on the scheme be reduced.

It is important that my Department's employment support services retain their relevance to current employment and economic conditions and continue to focus on the more vulnerable in our community. Following on from this review, the qualifying period for persons on unemployment benefit assistance has been increased from 12 and 15 months to five years with effect from 1 January 2003. Other social welfare qualifying payments are not affected by the change.
The person concerned wrote to me on 17 December 2002 expressing her concern at the changes. A reply has been issued to her explaining my position on the matter.

Ned O'Keeffe

Question:

997 Mr. N. O'Keeffe asked the Minister for Social and Family Affairs the number of farmers who have qualified under the farm assist scheme in each constituency in 2001 and 2002; the number of farmers whose applications were refused under the scheme in each constituency in 2001 and 2002; the amounts paid to each farmer up to the maximum of ?14,500; the number of farmers receiving the maximum payment per person per constituency; if her attention has been drawn to the crisis in farming due to the current climate, and to the widespread dissatisfaction with the farm assist scheme amongst farmers; and if she will make a statement on the matter. [1603/03]

It is not possible to provide a breakdown of the farm assist scheme claimload by Dáil constituency. A breakdown of such claims by local office is provided in Tables 1 and 2.

Table 1 shows the total number of claims in payment and the number of claims in payment where the application was made in 2001 and 2002.

During 2002, a total of 311 farmers had their farm assist application disallowed either because of failure to disclose means or because their means exceeded the prescribed limit. The corresponding figure for 2001 was 448. Further details of disallowances on a local basis will be made available to the Deputy as soon as possible.

Table 2 shows the number of farm assist cases where no means have been assessed against the farmer and the farmer is therefore in receipt of the maximum payment appropriate to his-her circumstances.

All costs that are associated with farming e.g. feed, fertiliser, contractor charges, interest on loans, fees, fencing, repairs, rent of conacre, labour hire, maintenance etc. are taken into account in accessing eligibility for the scheme. In addition, 30% of the assessing income is disregarded. There are child disregards of €253.95 per year for each of the first two children and €380.92 per year for each subsequent child. Capital is favourably assessed with the first €12,697.38 held by the farmer being disregarded.

Where, at any stage, a farmer considers that his or her circumstances have changed since the most recent means assessment, it is open to him or her to request a means review. Where a farmer is dissatisfied with a means assessment, he or she may appeal the decision to the social welfare appeals office. The following is a breakdown of the num ber of farmers receiving farm assist under a range of payment bands.

Weekly Payment

No. of Customers

under 50.00

391

50.00 - 99.00

2,030

100.00 - 149.00

2,961

150.00 - 199.00

1.345

200.00 - 249.00

1,215

over 250.00

554

Total

8,496

To increase awareness of the farm assist scheme, my Department undertook a publicity campaign in July 2002. The focus of the campaign, was a promotional video which describes who may benefit under the scheme, how to apply and how means are calculated. The response to the orders were very positive and I know that the scheme is valued in particular by farmers at the lower end of the farm income spectrum.
I am aware of the difficulties that farmers and their families are encountering at present. My Department recognises these difficulties and takes account of any loss of income or any additional costs incurred due to adverse weather conditions etc.
I am satisfied that farmers with difficulties can be catered for within the current arrangements for the assessment of means. I will of course keep the matter under review.
The following table shows a breakdown by county of farm assist recipients in 2001 and 2002. It should be noted that the figures have been compiled from data that is maintained on a local office catchment area basis and these do not correspond exactly with county boundaries.
Table 1
Farm Assist claims in payment – Breakdown by County

County

2001

2002

Total

New

Total

New

Carlow

68

10

70

9

Cavan

299

48

286

34

Clare

440

52

444

51

Cork

544

137

569

73

Donegal

1,175

137

1,222

135

Dublin

17

0

21

6

Galway

784

111

820

118

Kerry

729

69

717

90

Kildare

32

3

32

20

Kilkenny

75

22

76

24

Laois

95

16

104

12

Leitrim

252

30

253

46

Limerick

218

50

210

34

Longford

164

16

158

26

Louth

67

20

61

21

County

2001

2002

Total

New

Total

New

Mayo

1,671

173

1,714

147

Meath

35

8

33

9

Monaghan

407

39

414

39

Offaly

91

14

94

16

Roscommon

357

47

351

39

Sligo

169

47

186

66

Tipperary

206

32

233

50

Waterford

70

11

70

6

Westmeath

106

17

112

15

Wexford

134

16

149

25

Wicklow

38

5

43

13

Total

8,243

1,130

8,442

1,124

The following table shows a breakdown by county of current farm assist recipients with no means. It should be noted that the figures have been compiled from data that is maintained on a local office catchment area basis and these do not correspond exactly with county boundaries.
Table 2
Farm Assist Customers with no means – Breakdown by County January 2003

County

Number of Cases

Carlow

3

Cavan

16

Clare

23

Cork

36

Donegal

82

Dublin

2

Galway

54

Kerry

22

Kildare

2

Kilkenny

7

Laois

8

Leitrim

9

Limerick

9

Longford

1

Louth

16

Mayo

169

Meath

2

Monaghan

24

Offaly

1

Roscommon

5

Sligo

17

County

Number of Cases

Tipperary

13

Waterford

5

Westmeath

Wexford

6

Wicklow

3

Total

535

Question No. 998 answered with Question No. 968.

Michael Ring

Question:

999 Mr. Ring asked the Minister for Social and Family Affairs when an old age contributory pension application will be approved and granted to a person (details supplied) in County Mayo. [1746/03]

Based on a combination of his British and Irish insurance records, the person concerned qualifies for a pro-rata old age contributory pension from 5 May 2000. The rate of pension payable from 3 January 2003 is €10.50 per week. Notification of the decision issued to the person concerned. Arrears of pension due will also issue to him shortly.

Under social welfare legislation, decisions in relation to claims are made by deciding officers and appeals officers. These are statutorily appointed and I have no role in regard to making such decisions.

Michael Ring

Question:

1000 Mr. Ring asked the Minister for Social and Family Affairs if she proposes to introduce a pension scheme for stay at home wives; if discussions have taken place between her Department and women's groups, such as the ICA, IFA or other groups on this matter; and if she will make a statement on the matter. [1779/03]

In recent years a number of measures have been introduced to protect the pension rights of those who take time out of the paid workforce to care for children or sick relatives and to make qualification for a pension easier for those with broken or interrupted insurance records.

The homemaker's scheme was introduced in 1994 and allows for periods spent out of the work force caring for children or sick relatives to be disregarded when a person's contribution record is being averaged for pension purposes. This scheme is at present being reviewed as part of an overall review of the qualifying conditions for the old age contributory and retirement pension, the first phase of which was published in August 2000. Changes to the homemaker's scheme will be considered in the context of the findings of the phase 2 report which I expect to publish in the coming months.
The Government is committed to increasing the rate at which the qualified adult allowance, QAA, is paid for those over 66 years of age to the rate of the old age non contributory pension and to allowing for the payment of this allowance directly to the qualified adult. This process commenced in budget 2001, with increases of up to €19.05 per week granted at that time. Further increases were granted in the budgets of 2002 and 2003.
Since the 1 October 2002, arrangements are in place, in accordance with the conclusions of the PPF working group on administrative individualisation, which reported in September 2002, to allow spouses and partners of people entitled to a retirement or an old age contributory pension to receive payment of the QAA directly.
More flexibility has also been introduced into the qualifying conditions for the old age contributory pension scheme, including a reduction in the average number of contributions required for a minimum pension to ten, the introduction ofpro-rata pensions for those with mixed rate insurance records and the special pension for those with pre-1953 insurance contributions. These measures are of benefit to many women who have gaps in their PRSI records due to working in the home looking after children or caring full time for an elderly or incapacitated person.
The issue raised has been discussed with various groups, for example, as part of the pre-budget forum last October. It was also discussed at a meeting I held with the Farm Families Committee of the IFA on 14 November 2002. The committee, in its pre-budget submission welcomed the developments, outlined above, in relation to a personal pension for pensioner spouses and considers that this initiative helps to overcome the exclusion of many spouses from PRSI coverage.

John Cregan

Question:

1001 Mr. Cregan asked the Minister for Social and Family Affairs her plans to amend the regulations for old age pensioners in relation to calculating the yearly average and allow contributions up to retirement date to be included as currently persons are being denied the opportunity to have all their contributions assessed by the rule which allows contributions to be included up to the end of the previous financial year only; and if she will make a statement on the matter. [1848/03]

The records of my Department show that the person concerned has a total of 520 full rate contributions recorded for the period 1974 to 2001, 28 years. The balance of his record com prises modified rate insurance which is not reckonable for old age contributory pension purposes. This is equal to a yearly average of 19 contributions, which entitles him to a reduced rate personal pension payable at the rate of €110.50 per week. He is also in receipt of a qualified adult allowance in respect of his spouse of €73.60 per week.

Under current legislation only contributions made up to the end of the last complete tax year before a person reaches pension age may be counted when eligibility for a pension is being considered. The person concerned was 66 in October 2002 and consequently only contributions made up to December 2001 are reckonable.

In 2000 the Department published a review of the qualifying conditions for the old age contributory and retirement pension, phase 1. This report proposed, amongst other things, that consideration be given to changing the basis of assessment for old age contributory and retirement pensions from the current system of average contributions to one based on total contributions paid or credited. The phase 2 report, which is examining these issues further, is at an advanced stage of preparation and it is hoped to publish it as a discussion document in the coming months. Further changes in qualifying conditions for pensions will be considered in the light of the response to that report.

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