Vol. 396 No. 2
3 Miss Flaherty asked the Minister for Social Welfare if his attention has been drawn to the fact that cattle, sheep and milk prices are dropping substantially with consequent loss of income for farmers; and if he will respond to ensure that such families are adequately supported.
10 Mr. J. Mitchell asked the Minister for Social Welfare his views on whether his Department are in breach of their own commitment to assessment for farmers based on factual income rather than average or assessed income.
69 Mr. J. Mitchell asked the Minister for Social Welfare his views on whether averaging of farm income for assessment means that his Department cannot respond adequately and promptly to the sudden change in income level experienced by farmers hit by illness, drought or a great collapse in farm prices such as is the case at present.
I propose to take Questions Nos. 3, 10 and 69 together.
The substantial increases in the rates of unemployment assistance and the extension of the means limits, which I announced in my budget speech, will benefit many farming families.
Since 1987 I have substantially improved the position of smallholders and their families, and increased the longstanding lower rural rate of unemployment assistance to match the higher urban rate. As a result a smallholder with a dependent spouse and three children who received £87.60 in June 1987 will receive £116 in July 1990.
The social welfare legislation provides that the yearly value of any advantage accruing to a claimant from the use of property — other than property personally used and enjoyed by the claimant, such as a dwelling — is assessable as means. In the case of farmers, the value of the yearly advantage is basically the income from the farm less any expenses actually and necessarily incurred in earning that income. The normal basis of the calculation is the net income from the farm over the 12 months preceding the date of the investigation.
The investigation of means of smallholder claimants is carried out by social welfare officers. In the normal way, the officer's report is based on the claimant's income and outgoings in the previous year. However, in making the assessment, due allowance is made for any unusual features in that year so that the level of means assessed reflects the situation in an average or normal year.
For instance, where the claimant had an abnormally high income in the previous year from the sale of stock, the assessment would be adjusted to reflect his normal income from this source. Similarly, a large amount spent on something which does not occur every year, such as fencing, would be averaged out to reflect the smallholder's normal outgoing under that heading.
I am aware that the prices for farm stock and farm commodities, and consequently farm incomes, will vary from year to year. It is open to smallholders in receipt of unemployment assistance who have suffered a reduction in farm income due to a fall in the price of agricultural produce, or the exceptional circumstances mentioned in the second question, to apply, in the normal manner, to have the means assessed against them reviewed so that full account can be taken of their changed circumstances. However, when a degree of normality was restored, these cases would generally be reviewed again so that the means assessment would reflect the normal situation.
Any smallholder who, due to a fall in his income, now considers that he might be entitled to unemployment assistance should apply to his nearest local office.
The system of assessment of the means of smallholder applicants is intended to be fair and equitable and to have the flexibility to cater adequately for cases where, for whatever reason, farm income is seriously reduced. This is a matter which I keep under review.
The Minister gave us figures for unemployment assistance which, of course, involve the top rate for a person with no income. Does the Minister accept that there is a crisis in farm incomes and that farmers on small holdings are facing a level of poverty which — as has been said by agricultural commentators — has not been experienced in 20 years? Does he feel that his invitation to those 13,000 people to apply individually is an adequate, efficient or practical response from his Department?
I stated at the outset that since 1987 I increased the income of smallholders exceptionally. I am very conscious of this because I know that people on long-term unemployment assistance in deprived areas of cities were not getting as big an increase because the smallholder was on the rural rate and various other matters. I have taken numerous steps to improve the position of the smallholder. I said that the increase in the case of a family with three children was nearly £30 per week from that alone apart from other benefits of social welfare. Aggregate farm incomes increased by 32.5 per cent in 1987 and by 26.8 per cent in 1988. This is from information supplied by the national farm survey. The projected increase for 1989 is 4.5 per cent. Steps which I have taken have generally more than met the position although I accept that there can be cases where this is not so. It is fairly widely known that if circumstances change people are entitled to come forward under the scheme.
We must now proceed to deal with other questions. The time for dealing with Priority Questions is clearly exhausted, Question No. 4, please.
