The review of the supplementary welfare allowance scheme was carried out as part of the Government's Expenditure Review Initiative series of Programme Evaluation reviews. Given the extensive and complex nature of the scheme, the review was undertaken in two phases. A report was published at the end of the first phase in December 2004. That report gave a broad appraisal of the scheme and identified issues for particular consideration in the second phase which commenced in February 2005. This second and final phase of the review, which was published in November 2006, is an in-depth examination which considered the issues raised in phase I of the report, examined the validity of the objectives of the scheme and the efficiency and effectiveness of the scheme. The report of phase II of the review also provided a series of recommendations in relation to the future of the supplementary welfare allowance scheme.
Overall the review concluded that the scheme has, over the years, met its objective of guaranteeing that every person in the State has a minimum level of income sufficient to meet their basic day to day needs. However, the review also points out that the scheme has gone beyond its original "safety net" role and now plays a more extensive role than was originally intended. In overall terms the main recommendations arising include:
The creation of a unified system of income support delivered at Social Welfare Local Offices and complemented by a range of activation supports;
Vigorous support of the Rental Assistance Scheme to address housing needs of people in long-term rent supplementation
A continued role for the Community Welfare Service in delivering a flexible and immediate response to those most in need.
A number of measures have been introduced to progress implementation of the recommendations of the review. For example, Budget 2007 provided for improvements in the qualifying conditions for rent supplement which will support the transfer to the rental accommodation scheme of rent supplement tenants who wish to take up full-time employment.
The review also identified a number of issues relating to the incentives under the rent supplement scheme for those wishing to take up an employment opportunity. These issues were addressed in Budget 2007. Since June of 2007, where a person has additional income in excess of the standard weekly rate of supplementary welfare allowance, the first €75 of such additional income together with 25% of any additional income above €75 is disregarded for means assessment purposes. This ensures that those returning to work or participating in training schemes are better off as a result of taking up such an opportunity.
The review also recommended an easing of the means test for supplementary welfare allowance in the assessment of capital. Budget 2007 provided for an improved capital assessment which presents a less severe approach to the assessment of capital for supplementary welfare allowance purposes.
The process currently underway to transfer certain functions from the HSE to this Department presents fundamental reform and developmental opportunities for a fully integrated and enhanced income support system, as recommended in the report. This includes a restructuring and integration of income and wider support services within one entity, namely this Department, while facilitating the HSE in concentrating on its core health and personal social services functions. The report provides a working template to support the transfer programme.
In conclusion, the focus of the review was on maximising the achievement of the objectives that have been identified as appropriate to the supplementary welfare allowance scheme in an effective and efficient manner. Over time, the implementation of the recommendations of the review will result in improvements in the efficiency and cost effectiveness of the scheme.