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Dáil Éireann debate -
Tuesday, 25 Nov 2003

Vol. 575 No. 3

Written Answers. - Social Welfare Benefits.

Richard Bruton

Question:

349 Mr. R. Bruton asked the Minister for Social and Family Affairs the details of the revised eligibility for diet supplement announced at the time of the publication of the Estimates 2004. [28097/03]

Richard Bruton

Question:

351 Mr. R. Bruton asked the Minister for Social and Family Affairs the savings gleaned from the changes announced in the Estimates 2004 for assistance schemes; the savings announced for benefit schemes; and the number of applicants whom she estimates will be affected by the savings in the case of each change she has announced. [28099/03]

I propose to take Questions Nos. 349 and 351 together.

The Abridged Estimates Volume, AEV, for 2004 provide for total social welfare spending of €10.65 billion. This represents an increase of €358 million or 3.5% on the 2003 published Estimate. This increase does not take into account any additional social welfare spending to be announced in the forthcoming budget.

To stay within Government spending guidelines, a number of policy measures were identified leading to total savings in 2004 estimated at €55.8 million or 0.5% of total spending. The specific policy measures are shown below together with the Estimates for the associated savings and the number of recipients affected by each measure.

The back to education allowance is being refocused on people who are long-term unemployed in that the qualifying period for the allowance is being increased from six months to 15 months, in respect of the third level option, for all new claimants with effect from September 2004. The estimated savings arising from this measure are €2.2 million in 2004. Existing recipients of back to education allowance will not be affected nor will applicants for the second level option. It would have been expected that some 1,200 persons between six and 15 months unemployed would have qualified for the allowance in 2004.

Transitional payments for recipients of the one parent family payment, where earnings rise over €293 per week, will be discontinued from next January. The savings in 2004 will be €1.3 million and the measure will affect some 350 beneficiaries in 2004. It is expected, however, that there will be an increased take-up of family income supplement which is the main income support for persons with children in employment.

A number of measures in relation to the supplementary welfare allowance, SWA, rent supplement scheme will be implemented with effect from January next. These include an increase in the rate of the minimum contribution to be made by the recipient from €12 to €13 per week. This measure will result in savings of €3 million in 2004 and will affect approximately 60,000 recipients; if either of a couple is in full-time employment, they will be excluded from claiming rent-mortgage supplement. This measure will save €1 million and will affect 350 recipients in 2004; health boards will be given the power to refuse rent supplement in cases where the applicant has not already been renting for a period of six months, with provision for exceptions in relation to, for example, the homeless and people who are at risk. It is expected that some 4,000 applications for rent supplement will be affected by this measure, with an estimated net saving of €10.5 million in 2004; and rent supplement claimants will be referred to the local authority to have their housing needs assessed. In addition, any applicant who has left or refused offers of local authority housing will be refused rent supplement. It is estimated that approximately 100 such cases may arise in the year which will generate savings of approximately €600,000.
Payment of certain other supplements under the supplementary welfare scheme are being phased out or discontinued in the light of changes in the environment in which these supplements apply or where they have been applied beyond what was originally intended. The crèche supplement, which had been applied beyond its original score, is being discontinued from January 2004. It is expected that some 1,600 people who would otherwise have applied for the supplement will be affected, with savings of some €2.3 million. The supplement to support arrangements under the money advice and budgeting service is also being discontinued from January, affecting some 370 persons and with savings of some €700,000.
The diet supplement scheme is being restructured to take account of changes in the level of social welfare payments generally. The expected savings in 2004 are €1 million approximately, with 13,500 supplements affected.
In relation to the diet supplement, the current basis for calculating the amount of supplement payable in individual cases was put in place in 1996. In general, the amount of supplement payable is either €34.28, lower cost diets, or €44.44, higher cost diets, less one third – one sixth in the case of couples – of the applicant's income at 1996 social welfare payment rates. In the case of children under the age of 18 there is a standard rate of €10.20 per week for a higher cost diet and €6.40 per week for a lower cost diet.
The assessment of means for diet supplement has not changed since 1996 to take into account increases in the real value of weekly social welfare payments or changes in the cost of special diets. Similarly, the rates of payment have not changed since 1996. The cost of diets is to be updated to take account of inflation since 1996 and the means test will be based on current social welfare payment rates.
In the case of future applicants for diet supplement, the amount of supplement payable will be based on the revised diet costs less one third – one sixth in the case of a couple – of the applicant's current income. Consequently, the amount of diet supplement payable will be adjusted as social welfare rates increase in the future.
A person in receipt of a diet supplement prior to the introduction of the revised regulations will continue to receive the current rate of supplement until such time as there is a change in his or her circumstances that would warrant a review of the supplement.
A number of changes were also announced in relation to schemes funded from the social insurance fund: entitlement to child dependant allowance will be discontinued in January 2004 in respect of unemployment benefit and disability benefit claims where the claimant's spouse-partner has gross weekly earnings in excess of €300. This provision is estimated to save €10.4 million and will affect, on average, 16,800 recipients; in the case of disability benefit, unemployment benefit and health and safety benefit the weekly earnings threshold of €88.88 for the purpose of payment of reduced rates which has not being adjusted in line with increases in benefit since its introduction in 1993 will be increased to €50. The increase will result in net savings of €7.4 million and will affect, on average, 10,300 recipients; entitlement to the additional half rate payment of disability benefit, injury benefit, unemployment benefit, unemployability supplement, maternity benefit, adoptive benefit and health and safety benefit, currently payable at half rate, where the recipient is already in receipt of widow/ers pensions, lone parent payments etc. for new claimants, will be discontinued. A saving of €5.8 million is estimated and the measure will apply to an estimated weekly average of 2,000 claimants; from April 2004, the linking period for unemployment benefit and disability benefit claims will increase from 13 weeks to 26 weeks. This condition will apply to approximately a weekly average of 275 claimants and result in a saving of €2 million; the underlying number of paid contributions required for entitlement to disability benefit, unemployment benefit and health and safety benefit will be increased from 39 to 52 paid contributions. A total of €2.5 million will be saved in 2004, affecting a weekly average of 400 claimants; entitlement to unemployment benefit will be reduced from 15 months to 12 months where less than 260 PRSI contributions have been paid since first entering employment. This measure will affect a weekly average of 700 recipients and save some €5.2 million.

Richard Bruton

Question:

350 Mr. R. Bruton asked the Minister for Social and Family Affairs the number of paid stamps needed in order to re-qualify for benefit after exhausting the period of benefit. [28098/03]

Social welfare legislation provides for the payment of unemployment benefit for a maximum of 390 days, 15 months, where a person satisfies the qualifying conditions for receipt of payment. Where a person exhausts his or her entitlement to unemployment benefit, he or she may re-qualify for payment by having 13 paid contributions at any stage after the 156th day, six months, of unemployment provided all other conditions for receipt of payment are satisfied.

Question No. 351 answered with Question No. 349.

Brendan Howlin

Question:

352 Mr. Howlin asked the Minister for Social and Family Affairs if her attention has been drawn to the fact that applicants for one parent family payment must wait upwards of four months for a decision on their entitlement; her views on whether such a delay represents efficient delivery of service to such applicants; if she will take steps to reduce this inordinate waiting period; and if she will make a statement on the matter. [28129/03]

To determine entitlement to one parent family payment, it is necessary to establish that the statutory conditions are satisfied. This involves inquiries as to the applicant's means and, in the case of separated applicants, it also involves inquiries as to the arrangements for maintenance and, in some cases, a visit to the applicant's spouse. The amount of work involved in establishing that the conditions of the scheme are met is reflected in the time it takes to complete these inquiries.

The vast majority of one parent family payment applicants are in receipt of another social welfare payment while their claim is being processed. Such payment will normally continue until entitlement to one parent family payment is determined.

Every effort is made to process applications as quickly as possible and to minimise the time during which applicants have to rely on these alternative forms of support. In this regard, arrangements have continued to devolve the administration of one parent family payments to the Department's network of local offices. This is intended primarily to improve client service by reducing claim processing times through closer linkage with the local investigative officer network, as well as in providing more direct local contact for lone parents with the Department's employment support services.

Brendan Howlin

Question:

353 Mr. Howlin asked the Minister for Social and Family Affairs when a decision will be made on an application for one parent family payment submitted to her Department in September 2003 by a person (details supplied) in County Wexford; if a decision is made in this case in time for Christmas; and if she will make a statement on the matter. [28130/03]

On the information available, it is not possible to give a decision on entitlement in this case. The person concerned has been requested to provide additional information in relation to a number of matters. As soon as this information is received, a decision will be made and she will be notified of the outcome.

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

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