Dáil Éireann debate -
Wednesday, 10 Dec 2003

Vol. 576 No. 6

Written Answers. - Social Welfare Benefits.

Willie Penrose

Question:

274 Mr. Penrose asked the Minister for Social and Family Affairs the reason persons who are in receipt of disability benefit and who will be for a considerable period of time are not given the bonus Christmas payment; and if she will make a statement on the matter. [30369/03]

Minister for Social and Family Affairs (Mary Coughlan):

On 26 October, I announced that the Christmas bonus for 2003 will again be paid at a rate equivalent to 100% of the person's normal weekly payment, with a minimum payment of €30. The cost of this measure is estimated to be €115.63 million. Payment of the bonus has been made during the past week and it is estimated that it has benefited 1.23 million persons, comprising 805,000 recipients and an estimated 421,000 dependants.

The bonus was paid, as in previous years, to recipients of all long-term social welfare payments, including retirement and old age pensioners, widow's, widower's and one-parent families, carer's allowance, invalidity pension and disability allowance recipients, persons in receipt of farm assist and employment support payments.

The focus of the Christmas bonus has always been on long-term welfare payment recipients, who rely on the social welfare system for financial support over the long-term. Recipients of short-term payments such as maternity benefit, carer's benefit or disability benefit do not qualify for the Christmas bonus. It is open to persons who have been in receipt of disability benefit for at least one year to be assessed for entitlement to invalidity pension. The Christmas bonus is applicable to invalidity pension.

There are no plans to extend entitlement to the bonus payment to the short-term schemes and any such extension could only be considered in a budgetary context having regard to the resources available and the significant cost which would be involved.

Paul McGrath

Question:

275 Mr. P. McGrath asked the Minister for Social and Family Affairs the estimated cost of paying child dependant allowance at the present highest rate to all qualifying applicants. [30373/03]

Minister for Social and Family Affairs (Mary Coughlan):

There are currently three different weekly rates of child dependant allowances payable to social welfare recipients, €16.80, €19.30 and €21.60, depending on the type of payment. Half rate CDA may also be paid in respect of a child in certain circumstances, for example, where both of the child's parents are receiving a social welfare payment or where one parent has earnings over a prescribed amount.

To standardise the three main rates of allowances at the highest rate of €21.60 would mean that approximately 234,000 full rate payments and 121,000 half rate payments would be increased at a cost of approximately of €59 million annually. Since the production of the report of the commission on social welfare, which recommended a rationalisation of the rates of child dependant allowances, the number of different rates has been reduced from 36 to the current three.

The policy direction followed by successive Governments over recent years has been to concentrate resources for child income support on the child benefit scheme which is neutralvis-à-visthe employment status of the parents and does not contribute to poverty traps. The Government's commitment in this regard is reflected in the substantial resources invested in the child benefit scheme since entering office, including the increases announced in budget 2004, which come into effect from April next year. These increases will bring the monthly rate of child benefit to €131.60 in respect of each of the first two children and €165.30 for third and subsequent children.