Dáil Éireann Debate, Wednesday - 11 February 2004
313 Mr. Durkan asked the Minister for Social and Family Affairs the number of people who have been affected by the cutbacks announced by her Department in the budget; and if she will make a statement on the matter. [4372/04]
View answer314 Mr. Durkan asked the Minister for Social and Family Affairs the extent of the savings accruing to her Department arising from cutbacks announced in the budget; and if she will make a statement on the matter. [4373/04]
View answerI propose to take Questions Nos. 313 and 314 together.
Following the publication of Estimates 2004 and the social welfare improvements announced in budget 2004, social welfare spending in 2004 will be a projected €11.26 billion, an increase of 7% over the outcome for 2003. The 2004 Estimates for social welfare expenditure, published last November, were framed so as to stay within the overall spending guidelines agreed by the Government.
In the 2004 Estimates, a number of measures were announced which will result in an estimated net savings in the social welfare spending of €55.8 million in 2004, representing 0.5% of social welfare total spend. In a number of cases the adjustments were made on the basis that the service in question is more appropriate to the remit of another Department and not in keeping with the underlying objectives of the social welfare scheme concerned. The associated social welfare savings and the number of recipients affected by each measure in 2004 are as follows.
The increase in the qualifying period for back to education allowance, BTEA, from six months to 15 months in respect of the third level option will affect approximately 1,200 claimants and the estimated gross savings will be €2.2 million. With regard to the abolition of the transition payment that currently exists for recipients of OPFP, the estimated average weekly number of persons affected is 350 and estimated savings are €1.3 million in 2004. The increase in the rate of the minimum contribution for rent supplement to be made by the recipient from €12 to €13 per week will affect approximately 60,000 recipients and will result in savings of €3 million. Exclusion from rent supplement where either of a couple is in full-time employment will save €1 million and will affect approximately 150 recipients.
Entitlement to rent supplement, with certain exceptions, where the applicant has not already been renting for a period of six months is discontinued, with provision for exceptions such as the homeless and people who are at risk. It is expected that 2,000 applications for rent supplement will be affected by this measure with an estimated net saving of €10.5 million. With regard to referral of rent supplement claimants to the local authority to have their housing needs assessed and refusal of rent supplement where an applicant has left or refused offers of local authority housing, it is estimated that approximately 100 such cases may arise in the year which will generate savings of approximately €0.6 million. Discontinuance of the crèche supplement scheme will affect approximately 1,600 supplements, generating savings of €2.3 million.
Discontinuance of the MABS supplement will affect approximately 370 supplements, generating savings of €0.7 million in the SWA budget. With regard to restructuring the diet supplement scheme to take account of changes in the level of social welfare payments generally, the expected savings are €1 million approximately, with 1,700 supplements affected. Entitlement to child dependant allowance, CDA, in respect of all unemployment benefit and disability benefit claims where the claimant's spouse/partner has gross weekly earnings in excess of €300 is discontinued. The estimated savings for this measure are €10.4 million. The weekly average number of recipients affected is approximately 16,800. There is an increase in the current weekly earnings threshold for the purposes of the payment of reduced rates of disability benefit, unemployment benefit and health and safety benefit, known as graduated rates, from €88.88 to €150 and, as a consequence, an increase in the thresholds for the three bands used for the purposes of these graduated rates. This measure is, in effect, an adjustment of the threshold in line with inflation. The gross savings are estimated at €14.3 million. The net savings, having regard to the number of persons who will otherwise qualify for UA or SWA, are €7.4 million. The approximate numbers of persons affected in 2004 will be 10,300.
The discontinuance of additional half rate payment of disability, unemployment and related benefits, where the recipient is already in receipt of widow/ers pensions, lone parent payments and so forth for new claimants will result in estimated savings of €5.8 million in 2004. The approximate number of persons affected will be 2,000. The increase in the underlying number of paid contributions required from 39 to 52 for entitlement to disability benefit, unemployment benefit and health and safety benefit will yield estimated gross savings of €2.5 million. The average weekly number of recipients affected will be approximately 400 in 2004. There is an increase in the period within which claims are linked with a previous claim from 13 weeks to 26 weeks. The estimated annual savings are €2 million and the average weekly number of persons affected is 275. There is a reduction in maximum duration unemployment benefit from 390 days to 312 days where less than 260 PRSI contributions have been paid since first entering employment. The estimated savings are €5.2 million. This measure will affect an average weekly number of recipients of approximately 700.
