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Social Welfare Cutbacks.

Dáil Éireann Debate, Wednesday - 15 December 2004

Wednesday, 15 December 2004

Questions (73, 74, 75)

Eamon Gilmore

Question:

71 Mr. Gilmore asked the Minister for Social and Family Affairs if an assessment has been carried out of the impact of the social welfare cutbacks announced in November 2003; if so, if the findings of such an assessment have influenced the amendments made to the cutbacks in the Estimates for 2005; and if he will make a statement on the matter. [33447/04]

View answer

Ciarán Cuffe

Question:

89 Mr. Cuffe asked the Minister for Social and Family Affairs the changes, in cash terms, affecting the welfare cuts announced in November 2003. [33467/04]

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Tony Gregory

Question:

167 Mr. Gregory asked the Minister for Social and Family Affairs if it is his intention to reverse the 16 social welfare cuts referred to as the savage 16; and if he will make a statement on the matter. [33844/04]

View answer

Written answers

I propose to take Questions Nos. 71, 89 and 167 together.

I conducted a review of the measures announced in November 2003 to assess their impact on people. During the course of that review, I listened carefully to the views expressed by Members of this House, by the social partners and by voluntary groups and others I have met since becoming Minister for Social and Family Affairs.

As a result of that review, I concluded that while the measures were introduced for valid reasons, it was now appropriate to reverse some of them and to ease others. On budget day, I was pleased to announce the new arrangements, as follows: the qualifying period for the back to work allowance is being reduced from 15 months to 12 months and, in addition, the cost of education allowance is being increased by €254 to €400; the transitional payment for recipients of one parent family payment is being restored and will now be available for a period of six months where a recipient's income exceeds €293 per week; the income limit for entitlement to half rate child dependant increases for unemployment, disability and related schemes will be increased by €50 per week to €350; and the saving of €700,000 arising from last year's MABS supplement measure is being restored and redirected to the MABS service to enable it to further improve its services.

The crèche supplement has been restored and €2.3 million, an amount equivalent to the savings achieved by the discontinuation of crèche supplements, is now being made available to ensure that vulnerable families can continue to have access to crèche supports, for example, in cases where a social worker or public health nurse deems this necessary as part of their work with the family. I am consulting my colleagues the Tánaiste and Minister for Health and Children and the Minister for Justice, Equality and Law Reform about the most appropriate way to channel this funding.

The diet supplement has been restored for new applicants and €2 million is being made available to improve the diet supplement arrangements. Some €19 million in funding from the rent supplement scheme is being transferred to the local authorities as an initial measure to enable them to put long-term housing solutions in place. The six months rule for entitlement to rent supplement has been abolished and is being replaced by new measures in order to ensure that bone fide tenants who experience a change of circumstances are not disadvantaged.

Rent supplement will now remain in payment unless a third offer, as distinct from a second offer, of local authority accommodation has been refused. I am not raising the minimum contribution for rent supplement this year.

In addition, the measure relating to half rate payments for widows and widowers and allied payments has already been amended. The full year cost of all of the measures I have detailed above is €36 million in a full year. The operation of the remaining measures is being kept under review.

Question No. 72 answered with QuestionNo. 31.
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