Brian O'Shea
Question:133 Mr. O'Shea asked the Minister for Social and Family Affairs if she will reconsider the proposal to withdraw budget supplements, details supplied; and if she will make a statement on the matter. [29540/03]
Written Answers. - Social Welfare Benefits.
The objective of the supplementary welfare allowance scheme is to meet immediate short-term income maintenance needs. The scheme is not intended to be a long-term solution in any individual case.
My Department has overall responsibility for the Money Advice and Budgeting Service, MABS, which provides assistance to people experiencing indebtedness. There are 52 independent companies nation wide operating the service.
The key feature of the MABS programme is the provision of money advice, including the publication of information on money management and debt counselling.
In 2003 I have provided €9.9 million for the operation of the MABS service. The latest information available from the companies providing the service shows that some 12,000 people are availing of the service.
Separate from these arrangements, ongoing weekly payments known as MABS supplements have been paid under the SWA scheme. A total of 371 people receive these payments. Payments have been made in these cases because the people concerned have entered into repayment arrangements that are so onerous that they do not have enough income left to meet their basic needs.
Providing a weekly SWA payment is not the solution in these cases. Creditors will have to accept a more realistic repayment arrangement that does not impoverish the debtor.
More than 50% of MABS recipients have been in receipt of the supplement for more than a year and nearly 25% of recipients have been in receipt of the supplement for more than two years. The duration of these payments confirm that the supplement has in effect become a long-term arrangement which is effectively a subsidy for creditors.
It is with the support and expertise of the MABS companies throughout the country that people can be best assisted in sorting out their debts and these companies will continue to provide their services after the withdrawal of the MABS supplement under the supplementary welfare allowance scheme. In that regard, I am glad to be in a position to provide almost €11 million for the MABS service in 2004, an increase of more than 10% on the provision for 2003.
Pádraic McCormack
Question:134 Mr. McCormack asked the Minister for Social and Family Affairs the reason, when calculating eligibility for maternity leave grants, that the calculations are based on the earnings of the person in the tax year two years previous to their application; the reason this benefit is not based on the person's earnings in the complete tax year previous to the application; and if she will make a statement on the matter. [29574/03]
The fact that the relevant tax year for maternity benefit purposes is the second last complete contribution year before the start of the calendar year in which the benefit is claimed is related to the time frame in which the necessary information on PRSI contributions can be made available to the Department. PRSI contributions are collected through the PAYE system and there is a timelag between the end of any income tax year and the information on PRSI contributions becoming available.
The change in the income tax year from January 2002 has increased the effective timelag between payment of contributions and eligibility for benefit.
I have asked my Department to review the arrangements to see whether changes in the eligibility criteria for determining entitlement to benefit are possible or desirable at this point in the light of the new tax year arrangements.