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Dáil Éireann debate -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Written Answers. - Social Welfare Benefits.

Conor Lenihan

Question:

1358 Mr. C. Lenihan asked the Minister for Social and Family Affairs if her attention has been drawn to the serious poverty trap that is being created by the operation of the rent subsidy scheme; and if her attention has further been drawn to the fact that the scheme now creates a disincentive for people to take up work due to the loss of the allowance and its effect on household income. [20121/03]

Conor Lenihan

Question:

1359 Mr. C. Lenihan asked the Minister for Social and Family Affairs if she will urge her colleagues to consider a graduated or phased reduction in the level of rent subsidy paid to people who take up work in order that there is an incentive to take up work rather than simply survive on social welfare support and the high levels of rent subsidy currently available due to the relatively high levels of rent in the marketplace. [20122/03]

Conor Lenihan

Question:

1360 Mr. C. Lenihan asked the Minister for Social and Family Affairs if her attention has been drawn to the urgent need for changes to the rent subsidy scheme in view of a case (details supplied) which demonstrates the difficulty people have in taking up work. [20123/03]

I propose to take Questions Nos. 1358 to 1360, inclusive, together.

Rent supplements are payable under the supplementary welfare allowance scheme which is administered by the health boards on behalf of my Department. The purpose of a rent supplement is to provide assistance towards the reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source.
Under standard assessment rules rent supplements are calculated to ensure that eligible people, after the payment of rent, have an income equal to the rate of SWA appropriate to their family circumstances, less a minimum contribution of €12 which recipients are required to pay from their own resources. Up to €50 in respect of additional income from part-time employment or approved training courses is now disregarded in the means test thus ensuring that a person is better off as a result of taking up such an opportunity.
Supplementary welfare allowance is not normally payable to people who are engaged in full-time employment. Arrangements have been in place for a number of years which allow people to retain a portion of their rent supplement where they take up employment through approved schemes, subject to a weekly income limit of €317.43.
Back to work allowance and family income supplement, in cases where one or both of these are in payment, are disregarded in the assessment of the €317.43 weekly income limit. PRSI and reasonable travelling expenses are also disregarded in the means test.
Any changes in the qualification criteria for receipt of rent supplement would have to be considered in a budgetary context. In that regard, a rent supplement is a short-term income maintenance support and is not intended to address a person's long-term accommodation needs. Measures to improve the supply and affordability of social and affordable housing provide the best means of protecting and enhancing the housing position of people on low to middle incomes.
In the case identified by the Deputy the South-Western Area Health Board was informed about the case identified by the Deputy. The board advised that the case has been reassessed and it has determined that a rent supplement may be paid.

Michael Ring

Question:

1361 Mr. Ring asked the Minister for Social and Family Affairs the reason a person (details supplied) in County Mayo was told that they would receive disability benefit payment on two different dates when no payment materialised, as promised; and the reason incorrect information was given out about this claim. [20162/03]

Michael Ring

Question:

1376 Mr. Ring asked the Minister for Social and Family Affairs the reason a person (details supplied) in County Mayo is being deducted means of ?25 per week for farm income, when their only income from this land is ?12.38 per week; and if this person's entitlement to unemployment assistance will be reviewed. [20651/03]

I propose to take Questions Nos. 1361 and 1376 together.

This matter concerns a husband and wife and their entitlements to unemployment assistance and disability benefit, respectively. The wife was a dependant on her spouse's unemployment assistance claim when she submitted a claim to disability benefit in her own right. The disability benefit claim was received in my Department on 18 July 2003.
She qualified for disability benefit at the maximum personal rate of €124.80 from 16 July 2003. As a direct consequence, her husband became entitled to a reduced rate of unemployment assistance from that date. Before payment of disability benefit could be made, it was necessary to establish if the person concerned wished to receive payment of disability benefit in her own right or remain as a dependant on her spouse's unemployment assistance claim.
The person advised my Department on two occasions that her preferred option was to receive payment of disability benefit in her own right: there was a delay in processing this information. This delay is regretted. Payment of arrears was made on the 12 September and further payments will issue on receipt of medical evidence of incapacity.
The entitlement of the husband to unemployment assistance was reviewed recently. As a result of this review a deciding officer assessed his weekly means at €12, from 12 July 2003, based on the letting value of his land. His entitlement to unemployment assistance is subject to the limitation on the overall amount payable where both of a couple has separate entitlements. The maximum weekly amount payable to the household in this case is €207.60. Accordingly, the maximum unemployment assistance payable to the husband is €82.80, that is, the difference between the maximum of €207.60 and the €124.80 already in payment to the wife.
The fact that the means assessed against him were reduced to €12.00 in the recent review of his case does not impact on this payment, as he is already awarded the maximum amount payable to a person whose spouse is in receipt of the full rate of disability benefit. However, in the course of reviewing his entitlements, it has come to light that an underpayment of unemployment assistance occurred between April 1999 and July 2003. This is now being rectified and arrears or €2,224.54 which are due will issue shortly.

Gay Mitchell

Question:

1362 Mr. G. Mitchell asked the Minister for Social and Family Affairs if she will arrange for old age pensions paid into bank accounts to be paid on a current week basis for security and other reasons. [20211/03]

Since April 2000 payment of pensions by electronic fund transfer, EFT, to personal bank accounts is generally made two weeks in arrears. There are technical issues affecting the alignment of the payment frequency in these cases with other payment methods and the necessary work will be carried out as soon as possible.

Question No. 1363 answered with Question No. 1341.
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