Social Welfare Benefits.

Dáil Éireann Debate, Tuesday - 15 June 2004

Tuesday, 15 June 2004

Questions (33, 34, 35, 36)

Liz McManus

Question:

83 Ms McManus asked the Minister for Social and Family Affairs the arrangements that have been made to accommodate asylum-seeking families from the new EU states who may have lost the entitlement to stay in State-run accommodation following the accession of the new member states; the number of these persons who do not qualify for rent allowance due to the fact that they do not satisfy the habitual residence requirement; and if she will make a statement on the matter. [17712/04]

Brian O'Shea

Question:

89 Mr. O’Shea asked the Minister for Social and Family Affairs the reason her Department has decided to scale back social welfare benefits for non-residents; her views on whether this will adversely affect children of new asylum seekers who will not have sufficient money to purchase clothing and for other day-to-day expenses; her further views on whether this may result in children of asylum seekers becoming destitute; and if she will make a statement on the matter. [17714/04]

Written answers

Minister for Social and Family Affairs (Mary Coughlan)

I propose to take Questions Nos. 83 and 89 together.

Access to social assistance and child benefit payments has been restricted since 1 May 2004 by the introduction of a new eligibility requirement, known as the habitual residence condition.

The new condition is designed to safeguard the social welfare system by restricting access to social assistance and child benefit payments for people from other countries who have little or no connection with Ireland. All persons claiming welfare payments, including nationals of the new EU member states who applied for rent supplement after 1 May, are subject to the habitual residence condition. People who fail to satisfy the habitual residence condition are offered the option of being referred to the Reception and Integration Agency (RIA) of the Department of Justice, Equality and Law Reform who facilitate their departure home and provide full board accommodation pending departure.

The immigration status of asylum seekers from the new EU member states has been underwritten by EU treaty rights from 1 May 2004 and they now have full access to the Irish labour market. In this context, the Department of Justice, Equality and Law Reform requested new EU member state nationals in direct provision centres to seek alternative accommodation.

However, they are being given ample opportunity to secure alternative accommodation before leaving direct provision. The Department of Justice, Equality and Law Reform has assured my Department that nobody from a new EU member state has been compelled to leave direct provision without there being an alternative accommodation option available to that person. Asylum seekers who are accommodated in direct provision centres have all of their basic needs, including the needs of their children, provided for within the direct provision system.

Asylum seekers in direct provision are also paid a weekly allowance of €19.10 per adult and €9.60 in respect of each child dependant. In addition, an asylum seeker can also apply to a health board for a single payment of supplementary welfare allowance to meet an exceptional need. These payments are generally made for the purchase of clothing and are not subject to the habitual residence condition.

My Department asked each health board to furnish data on the number of applications for supplementary welfare allowance, including rent supplement, which have been refused on habitual residence grounds. Six boards have responded so far and they report that some 68 applications were refused on habitual residence grounds during the month of May. This includes nationals of the accession states as well as nationals of other countries. A more detailed breakdown is not available.

I am satisfied that the introduction of the habitual residence condition will not adversely affect asylum seekers in the direct provision system.

Question No. 84 answered with QuestionNo. 79.

Arthur Morgan

Question:

85 Mr. Morgan asked the Minister for Social and Family Affairs if she will reverse the decision taken in budget 2004 to restrict the back-to-work allowance to those who are three years or more unemployed; and if she will make a statement on the matter. [13950/04]

Minister for Social and Family Affairs (Mary Coughlan)

The back-to-work allowance scheme which was introduced in September 1993 is part of my Department's programme of initiatives designed to assist long-term unemployed people, lone parents and other social welfare recipients to return to the active labour force. There are two strands to the scheme, the back to work enterprise allowance for self-employment and the back to work allowance for employees.

The allowance was introduced at a time when long-term unemployment stood at 8.9%. In its early years the scheme proved very effective in helping people who had been long-term unemployed to return to the labour force. However, changes in labour market conditions since the mid-1990s have reduced the need for the scheme. This is illustrated by the drop in numbers availing of it in recent years. At present, there are 14,060 participants in the scheme, compared to 39,343 in October 2000 when the scheme reached its peak.

The scheme was reviewed in 2002 in light of economic and labour market changes and, in particular, the drop in unemployment levels since the introduction of the scheme in 1993. This review also took account of an evaluation of the scheme by independent consultants. They recommended that the scheme should be restructured in light of the changes in the labour market. In particular, the review recommended that the scheme be refocused on the longer-term unemployed, that the non-financial supports be enhanced and that the overall numbers on the scheme be reduced.

In January 2003, therefore, the qualifying period for persons on unemployment benefit-assistance was increased to five years. Recipients of other social welfare qualifying payments were not affected by the change. The scheme is continually monitored to ensure its relevance to current labour market and economic conditions. I recognised that there was some difficulty being experienced by persons wishing to enter self-employment after five years' attachment to the live register. I announced in budget 2004 that the qualifying period for access to the self-employed strand of the scheme would be reduced to three years for those in receipt of an unemployment payment.

Effectively from March 2004 persons in receipt of unemployment benefit-assistance accessing the self-employed strand of the scheme only require three years on their payment to qualify for participation in the scheme. I will continue to monitor the scheme but I have no immediate plans to change the existing qualifying criteria.

Michael Ring

Question:

86 Mr. Ring asked the Minister for Social and Family Affairs the progress to date of her review of the supplementary welfare allowance, with particular reference to the rent supplement; and if she will make a statement on the matter. [17645/04]

Minister for Social and Family Affairs (Mary Coughlan)

The supplementary welfare scheme was selected for review in my Department's series of expenditure reviews largely because of the increasing numbers of recipients on the scheme, the consequent rise in expenditure and the range of changes being proposed in relation to individual aspects of the scheme. The review is being carried out by an interdepartmental working group chaired by my Department and is comprised of representatives from my Department, the Department of Finance, the Department of Health and Children and the health boards.

The review involves a fundamental appraisal of the scheme in which all of its aspects are being examined with the aim of improving customer service and administrative efficiency. The review also provides an opportunity to address the role of the health boards' community welfare service generally in tackling poverty and social exclusion.

The working group carried out an extensive consultation process. This resulted in 145 submissions being received by the working group. More than 700 issues were raised in these submissions covering some 18 broad themes. Due to the number and nature of the issues raised, the working group has decided to draw up an interim report. This is being drafted and I hope to receive it shortly.

As the Deputy is aware, I am devoting a considerable amount of effort to reform of the rent supplement element of the supplementary welfare allowance scheme. In recognition of the fact that rent supplements had become in effect a scheme of long-term housing support for many people, the Government set up a planning group to rationalise current arrangements for housing support. Our objective is to ensure that long-term housing needs are addressed by providing appropriate solutions rather than through the social welfare system.

Arising from the work of this group, an action plan is now being finalised. The action plan will include criteria for determining which categories of rent supplement recipient will be eligible to have their needs addressed by the housing authorities, an implementation timescale, financing arrangements and other matters. Discussions between my Department and the Department of the Environment, Heritage and Local Government in that regard are at an advanced stage and I expect to be in a position to bring proposals to Government shortly.