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Health Board Allowances.

Dáil Éireann Debate, Wednesday - 7 July 2004

Wednesday, 7 July 2004

Questions (322, 323)

Willie Penrose

Question:

332 Mr. Penrose asked the Minister for Social and Family Affairs if she is satisfied regarding the figures of having the means assessment for rent allowance payable under the SWA scheme determined on a national rather than a de facto basis; her views on whether same is extremely punitive in the context of prevailing low interest rates; if her attention has been drawn to the fact that notified assessment system has remained unchanged for 27 years; if, in this context, due to the unfairness of same, she will have it adjusted; and if she will make a statement on the matter. [20654/04]

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Written answers

The supplementary welfare allowance scheme, SWA, is the safety net within the overall social welfare system in that it provides assistance to eligible people in the State whose means are insufficient to meet their basic needs and those of their dependants. Its primary purpose is to ensure that every person in the state has sufficient resources to meet their basic needs. In assessing a person's means for the purpose of SWA, including the rent supplement aspect of the scheme, the legislation provides that all income both in cash and in kind is taken into account. While income derived from certain sources can be disregarded, applicants for SWA are generally expected to use their own income or capital, if they have any, to meet their basic needs in the first instance.

The method of assessment to which the Deputy refers relates to the assessment of capital such as savings or the value of property other than the applicant's home. For the purpose of the means test, capital is assessed using the following formula: 5% of the first €507.90 plus 10% of the balance above €507.90. This is then divided by 52 to give the weekly value of the means. A single person with capital of €70,000 will qualify for SWA at a reduced rate, while a person with dependants will still qualify even if they have substantially higher amounts of capital.

I am aware that interest rate paid to depositors is low at present. However, the purpose of the formula is to assess capital value rather than the interest accruing to an individual. Any changes in the means assessment criteria for receipt of supplementary welfare allowance would have to be considered in a budgetary context. In this regard I am satisfied that the formula is reasonable and I have no immediate plans to alter it.

Willie Penrose

Question:

333 Mr. Penrose asked the Minister for Social and Family Affairs if she will take steps to reverse her decision to discontinue the crèche supplement; and if she will make a statement on the matter. [20655/04]

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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 and it was never intended to be an ongoing source of funding for crèches. The appropriate necessary services need to be funded directly in a sustainable and appropriate manner. The crèche supplement was introduced with the intention of providing assistance to a parent in need of short-term emergency support. This could arise, for example, where a parent would not be able to avail of necessary supports such as counselling services or addiction treatment programmes without assistance with child minding.

The fact that supplements were in payment for long durations in many cases indicates that they had become a long-term child care support rather than the short-term social welfare intervention which was originally intended. In effect, long-term child care needs were being provided through a short-term emergency provision scheme. This is not an appropriate way to meet the needs of the people in question.

Discussions are continuing with officials from the Department of Justice, Equality and Law Reform, the Department of Health and Children, the Department of Education and Science and health board representatives to ensure a more co-ordinated approach to the provision of crèche and pre-school supports. As an interim measure, crèche supplements in payment prior to 1 January 2004 are being allowed to continue. The changes I introduced in the supplementary welfare allowance scheme do not affect the discretion available to health boards to provide assistance in emergency cases which may arise from time to time.

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