Skip to main content
Normal View

Social Welfare Benefits.

Dáil Éireann Debate, Tuesday - 23 November 2004

Tuesday, 23 November 2004

Questions (244, 245)

Kathleen Lynch

Question:

293 Ms Lynch asked the Minister for Social and Family Affairs the amount of his Department’s Estimates which has been overpaid to recipients of the one parent family payment allowance who have returned to employment in the years 2001, 2002 and 2003; his views on whether his Department should improve its notification or early warning system to persons in this category to ensure that overpayments do not occur; and if he will make a statement on the matter. [29827/04]

View answer

Written answers

The total amount of overpayments raised to date in respect of one parent family payment cases for the tax years 2001, 2002 and 2003 is €23.2 million. A breakdown for individual tax years is not available. Recipients of one parent family payments are obliged to notify my Department when there is a change in their circumstances, for example, when their earnings increase. Overpayments may arise where beneficiaries have failed to notify my Department of an increase in their weekly earnings. Applicants are advised of this requirement when their payment is initially awarded. The notice is also included on payable order books.

Lone parent customers who are paid electronically are notified each year of the budget increases and included in the notification is the list of conditions for the continued receipt of the payment.

In addition, my Department takes other opportunities to inform customers of the need to notify it of any changes in circumstances, for example in the recently published customer charter. The charter is on display in public offices and is available on my Department's website.

John Cregan

Question:

294 Mr. Cregan asked the Minister for Social and Family Affairs the situation with respect to persons on rent allowance; if it is reduced on a gradual basis, if a person or adult children can take up full or part-time work; and if the situation changes when responsibility for a recipient of this allowance transfers to the local authority under the 18-month rule. [30131/04]

View answer

Rent supplements are available through the supplementary welfare allowance scheme which is administered by the health boards on behalf of my Department. Supplementary welfare allowance is not normally payable to people who are engaged in full-time employment. For these purposes, employment for 30 hours or more per week is regarded as full-time.

Arrangements which have been in place for a number of years allow a person to retain a portion of his or her rent supplement where he or she takes up employment through approved schemes, such as the back to work scheme or community employment. These arrangements are particularly beneficial to people who take up full-time employment, as they would not otherwise be entitled to rent supplement.

Subject to certain conditions, including a weekly household income limit of €317.43, rent supplement may be retained on a tapered basis for up to four years, that is, 75% in year one, 50% in year two, and 25% in years three and four. Back to work allowance and family income supplement, in cases where one or both of these are in payment, are disregarded in the assessment of the €317.43 weekly income limit. PRSI and reasonable travelling expenses are also disregarded in the means test.

In addition to those on approved schemes, anyone who has been unemployed for 12 months or more and who moves from a welfare payment to full-time open market employment may retain rent supplement on the tapered retention basis outlined above.

Participants in the back to work scheme and community employment can opt to be assessed under either standard supplementary welfare allowance rules or the retention arrangements outlined above and will be entitled to receive payment under the more favourable option in their case. Under standard assessment rules rent supplements are calculated to ensure that an eligible person, after the payment of rent, has an income equal to the rate of basic supplementary welfare allowance appropriate to his or her their family circumstances, less a minimum contribution, currently €13, which each recipient is required to pay from his or her own resources. Up to €50 in respect of additional income from part-time employment is disregarded in the means test thus ensuring that a person is better off as a result of taking up such an opportunity. Any amount of family income supplement in payment is also disregarded.

A new initiative was announced by Government in July of this year whereby local authorities will progressively assume responsibility for meeting long-term housing needs including those of people dependent on rent supplement for 18 months or longer. These new rental accommodation arrangements will see local authorities put solutions in place for people with long-term housing needs, while the existing rent supplement scheme will continue to provide income support for up to 18 months where necessary. The local authority approach will be accommodation-based. People accommodated under these arrangements will make a contribution towards their housing costs on the same basis as people on the existing local authority differential rent scheme.

Question No. 295 withdrawn.
Top
Share