Dáil Éireann díospóireacht -
Tuesday, 23 Apr 1996

Vol. 464 No. 3

Written Answers. - Rent-Mortgage Supplement.

Joe Walsh

Ceist:

118 Mr. J. Walsh asked the Minister for Social Welfare the meaning of the statement, clawback rule abolished for carers who get rent-mortgage supplement, from the Social Welfare fact sheet dated 23 January 1996; and if he will make a statement on the matter. [8237/96]

Minister for Social Welfare (Proinsias De Rossa)

Under the supplementary welfare allowance (SWA) scheme, a weekly supplement may be paid in respect of rent or mortgage interest to eligible people in receipt of social welfare or health board payments.

Entitlement to a supplement is determined by the health boards and supplements are normally calculated to ensure that the person, after payment of rent or mortgage interest, has an income equal to the rate of SWA appropriate to the family circumstances, less £6. This £6 represents the minimum contribution which clients are required to pay from their own resources. In addition to the minimum contribution, applicants are required to contribute any assessable means in excess of the appropriate SWA rate.

Carer's allowance is a means-tested scheme for people who are looking after elderly or incapacitated people who require full time care and attention. The weekly rate of carer's allowance is £62.50. The clawback mentioned in the question comes into effect in a case where a person who was formerly an adult dependant on a spouse-partner's payment, is awarded the carer's allowance in their own right. The personal rate of carer's allowance is £25 higher than the adult dependant rate. This additional £25 is currently counted as means when the rent or mortgage interest supplement is being calculated and the supplement is reduced accordingly. As a result, the carer, who is an adult dependant, is financially no better off as a result of being awarded the higher rate of carer's allowance.

As the carer's allowance was intended to reward carer's in the home for the work they perform, I have decided to abolish the clawback of the additional income from carer's allowance when assessing carer's for rent and mortgage interest supplements. To achieve this, it is necessary to amend the regulations governing the SWA scheme under which supplements are paid. I intend to make the necessary regulations in June.