Dáil Éireann Debate, Tuesday - 10 May 2022
542. Deputy Claire Kerrane asked the Minister for Social Protection the estimated cost to the Exchequer of a weekly cost of disability payment based on the Indecon report; and if she will make a statement on the matter. [23015/22]
View answer543. Deputy Claire Kerrane asked the Minister for Social Protection the estimated cost to the Exchequer of a weekly cost of disability payment of €20, €30 and €40 respectively in tabular form; and if she will make a statement on the matter. [23016/22]
View answerI propose to take Questions Nos. 542 and 543 together.
Expenditure by my Department on Illness, Disability and Carers programmes, in 2020, was €4.7b or 15.7% of total expenditure.
My Department commissioned Indecon International Research Economists to carry out research into the cost of disability in Ireland in order to get a better understanding of the extent and composition of these costs and the way they affect people differently.
The Indecon report highlighted that the ‘Cost of Disability’ is significantly wider than the income support system and found that there is not a single typical ‘cost of disability’; rather there is a spectrum from low additional costs to extremely high extra costs of disability, depending on the individual circumstances of the person concerned.
Additional costs of disability identified run across a number of areas of expenditure including: housing, equipment, aids and appliances, mobility, transport and communications, medicines; care and assistance services and additional living expenses.
The research has implications for many areas of public policy, and in order to implement an all-Department response, the Government has referred the report to the National Disability Inclusion Strategy Steering Group, chaired by the Minister of State with responsibility for Disability, Anne Rabbitte, T.D.
The Indecon report does not recommend a weekly cost of disability payment amount; rather it found that broad ranges apply. The report notes also that even where individuals had the same disability, different needs could be identified. Indecon concluded that costs faced by individuals will severe disabilities on average ranged from €9,600-€12,300 per annum and for those with limited disabilities from €8,700-€10,000 per annum. The report further concludes that:
- Measures to address the additional costs of disability should be based on a multifaceted approach involving increased cash payments, enhanced access to service provision and specific targeted grant programmes;
- A high priority should be given to facilitating an increase in employment opportunities for individuals with disabilities;
- Concentration of any additional supports should be targeted on those most in need and who face the greatest additional costs of disability. This would be more effective in meeting policy objectives and in enhancing value for money than introducing additional small scale supports for those who face minor additional costs of disability.
- That the levels of disability payments and allowances should be changed to reflect the very different costs of disability by severity and type of disability.
In Budget 2022 a number of measures were introduced to support people with disabilities and carers.
- An increase across core social welfare payments/rates. (Increases to the weekly rates of payment for working age recipients under 66 years of age) by €5 per week, with proportionate increases for qualified adults and those on reduced rates).
- Increase to the income disregard for Carer's Allowance from €332.50 to €350 for a single person and from €665 to €750 for a couple.
- Increase to the Capital Disregard for Carer's Allowance from €20,000 to €50,000.
- Extension to the period during which Domiciliary Care Allowance can be paid for children in hospital from three months to six months (including payment of Carer's Allowance for this period).
- Increase to the upper earnings disregard limit for Disability Allowance, by €25 per week, from €350 to €375 per week.
- Increase in the rate of the Wage Subsidy Scheme for private sector employers by €1 per hour (equivalent to 60% of National Minimum Wage)
Three grants, currently available through Intreo centres, to also be available through EmployAbility contractors in 2022; these are:
- Job Interview Interpreter Grant
- Workplace Equipment Adaptation Grant
- Personal Reader Grant
Increase to the general weekly means disregard for Disability Allowance to €7.60 (was €2.50 per week).
- Extension to the eligibility for the disregard of PhD scholarship income, in the means test, to recipients of the Blind Pension.
- Introduction of a grant of up to €500 in any calendar year towards the purchase of wigs/hairpieces/hair replacement system in cases of hair loss due to illness or treatment of an illness.
- Increase to the Fuel Allowance of €5 to €33 per week - with immediate effect. This increase was paid from early November 2021. The weekly means threshold was also increased by €20 from €100 to €120.
Increase to the Living Alone Allowance (LAA) of €3, from €19 to €22 per week. The LAA is an additional payment made each week to:
- people aged 66 years or over who are in receipt of certain social welfare payments, including State pensions, and who are living alone;
- people who are less than 66 years of age, living alone and in receipt of Disability Allowance, Invalidity Pension, Incapacity Supplement or Blind Pension.
Under the Roadmap for Social Inclusion (2020-2025) and Pathways to Work (2021-2025) strategies, my Department has committed to developing and consulting on a ‘strawman’ proposal for the restructuring of long-term disability payments to simplify the system and take account of the concerns expressed in the Make Work Pay report’, and a review the current long-term disability payment schemes with a view to removing inconsistencies/anomalies and ensuring that they recognise the continuum of disabilities and support employment’.
This work is currently underway within my Department, with a public consultation process to commence in due course.The estimated additional cost to the Exchequer of a weekly cost of disability payment of €20, €30 and €40 is as follows:
|
Estimated additional cost to the Exchequer of a weekly cost of disability payment of €20, €30 and €40 |
|||
|
264,960 |
€20 |
x 52 |
€276m |
|
264,960 |
€30 |
x 52 |
€413m |
|
264,960 |
€40 |
x 52 |
€551m |
* note: the estimate is based only on persons in receipt of the following payments (at the end of 2021): Domiciliary Care Allowance, Partial Capacity Benefit, Invalidity Pension, Disability Allowance, Blind Pension and Disablement Benefit. The cost of such an approach would increase, as other payment groups may need to be included, given demographic trends and other factors.
