Vol. 573 No. 1
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Dáil Éireann debate - Wednesday, 22 Oct 2003
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Written Answers. - Social Welfare Benefits.
280 Mr. Durkan asked the Minister for Social and Family Affairs if she proposes to increase the rate or extend the eligibility in respect of optical and dental benefits; and if she will make a statement on the matter. [24571/03]
The treatment benefit scheme provides a range of benefits in the areas of dental, optical and aural treatment for qualified PRSI contributors and their dependent spouses where appropriate. The PRSI contribution conditions relating to entitlement to these benefits vary depending on the age of the insured person and are designed to ensure the continuing viability of the scheme while directing limited resources effectively.
While I have no plans, at present, to increase the rate or extend the eligibility in respect of optical and dental benefits, the operation of the treatment benefit scheme is subject to ongoing review by my Department and the question of further improvements would be a matter for consideration within the constraints of budgetary policy and the best targeting of available resources.
281 Mr. Durkan asked the Minister for Social and Family Affairs if she will consider increasing adult dependant allowances; and if she will make a statement on the matter. [24572/03]
One of the key objectives of the 2003 social welfare budget package was to protect and if possible enhance the real value of all rates of payment. Budget 2003 provided for increases in the main personal rates of weekly payments ranging from 5.1% to 7.6%. The main rates of qualified adult allowances were also increased by the same percentages, thereby ensuring that they did not fall as a proportion of the associated personal rate. It is now projected, by the Department of Finance, that prices will increase by an average of 3.6% in 2003 as a whole and I particularly welcome the recent decline in the annual rate to 2.9% in September of this year. Consequently, the social welfare increases provided for in budget 2003, in both the personal and qualified adult rates of payments, have been well ahead of the projected inflation rate.
At a time of economic uncertainty, I am committed to safeguarding the position of all social welfare recipients. The levels of increases to be provided in social welfare payments, including qualified adult payments, in the 2004 budget will have regard to trends in the cost of living, Government commitments and priorities as well as the overall Government financial position.
282 Mr. Durkan asked the Minister for Social and Family Affairs if she will give consideration to increasing child dependant allowances; and if she will make a statement on the matter. [24573/03]
Since 1994, successive Governments have held the rate of child dependant allowance, CDA, constant while concentrating resources for child income support on the child benefit scheme, CB. Over that period, the combined CB-CDA payment has increased by more than double the rate of inflation. Child benefit is issued regardless of the employment status of the child's parents and does not contribute to poverty traps, whereas the loss of child dependent allowances by social welfare recipients on taking up employment can act as a disincentive to availing of work opportunities. As a universal payment, which is not taxable and is not assessed as means for other secondary benefits, child benefit is in fact more effective than child dependent allowances as a child income support mechanism when account is taken of these incentive issues.
The Government's commitment to this policy is reflected in the substantial resources we have invested in the child benefit scheme since entering office, including an additional expenditure of €1.27 billion on child benefit when the current programme of multiannual increases is complete. We will then have moved from a position in 1994 in which 70% of child income support for a family claiming social welfare payments was in the form of child dependant allowance, to a position where child dependant allowance will account for less than 33%. The issue of increasing child dependant allowance has been raised a number of times. The increased investment in the child benefit scheme by the Government in recent years has been of major benefit to families and is a most effective use of the resources available for child income support.
In the partnership agreement, Sustaining Progress, the importance of child income support arrangements is recognised, with a commitment to examine the effectiveness of current arrangements in tackling child poverty. The question of increases to the child dependant allowance will be a matter for consideration in a budgetary context and in the context of priorities generally.
