The principle of rationalising the number of social assistance schemes is kept under continuous review. As part of this process the new one-parent family payment (OFP), which was introduced in January 1997, merged the previous social assistance schemes for lone parents and deserted wife's benefit recipients.
However, it should be borne in mind that different categories of social welfare recipients have differing needs. The social welfare system must, therefore, be flexible enough to respond adequately to these needs. For example, the different methods of assessing earnings as between the various social assistance payment schemes reflect specific policies being pursued by my Department, which are aimed at targeting particular groups of recipients for special attention.
Most recently, however, the process of standardising the assessment of capital across the different social assistance schemes has been initiated, so as to improve the equity of the system. The introduction of the disability allowance (DA) scheme in October 1996 and the one-parent family payment scheme in January 1997 presented the opportunity to commence this process.
Under the new assessment provisions, the first £2,000 of capital is disregarded, the next £20,000 is assessed at 7.5 per cent of the capital value and the balance is assessed at 15 per cent. These provisions were further extended under the Social Welfare Act, 1997 to the old age (non-contributory) pension, widow's and widower's (non-contributory) pension, orphan's (non-contributory) pension, carer's allowance and pre-retirement allowance schemes, with effect from October 1997.
The question of extending them to the other social assistance schemes, that is unemployment assistance and supplementary welfare allowance, is being examined in a budgetary context, in the light of the available resources and other priorities.
Further rationalisation and streamlining of social welfare payment categories will be considered as the opportunities arise and resources allow.