I propose to take Questions Nos. 235 and 236 together.
Social Assistance payments act as a safety net for people who have insufficient income and who do not qualify for a contributory payment. The use of a means test is to ensure that scarce resources are directed to those in greatest need.
Payments from the United Kingdom (UK) are assessed as income under current legislation. In assessing means derived from payments received from non-European Monetary Union (EMU) States, the Department uses the conversion mechanism provided for under Article 107 of Council Regulation (EEC) No. 574/72 on Social Security for Migrant Workers. The exchange rates for converting sterling and other non EMU currencies are published quarterly in the Official Journal of the European Union. The Department obtains this rate at the beginning of each quarter and uses it in all conversions during the course of that quarter irrespective of whether the value of the currency concerned rises or falls in that period. The conversion rates published in 2016, which are reflective of the changes in the value of sterling, are Q1: 1.36450; Q2: 1.32523; Q3: 1.26216; Q4: 1.18898.
In the case of a new claim, when calculating the value of a sterling payment, the conversion rate used is that applicable to the quarter in which the effective date of the claim falls.
It is open to any person in receipt of a social assistance payment to request that his/her entitlement be reviewed if they wish. It is important to note, however, that any such review will involve a full reassessment of all of the customer’s means to ensure that the person continues to receive the correct payment in line with their overall entitlement and such reviews cannot of their nature just focus on the income derived from the UK. When conducting such a review, the conversion rate used is that applicable to the date of last increase in the sterling payment of the UK State Pension or the rate applicable in a subsequent quarter if that rate has been published by the date of the decision and is more favourable to the customer.
Following the outcome of the UK referendum, negotiations on the UK’s future relationship with the EU will take time. In the interim, it is important to stress that all payments made by the Department of Social Protection, including those to recipients who are resident in Britain and Northern Ireland, and payments from the UK to residents in Ireland, will continue to be paid.
I hope this clarifies the matter for the Deputy.
