Dáil Éireann díospóireacht -
Wednesday, 7 Oct 1998

Vol. 494 No. 5

Priority Questions. - Social Welfare Benefits.

Paul McGrath

Ceist:

36 Mr. McGrath asked the Minister for Social, Community and Family Affairs the number of persons in receipt of carer's allowance; the percentage of those who receive the allowance at the maximum rate; if his attention has been drawn to the commitment and care given by these carers on a 24 hour basis; the plans, if any, his Department has to make a special payment to carers to enable them to provide alternative care for a short period, annually, to the person being cared for. [18794/98]

Mr. D. Ahern

The carer's allowance is a social assistance scheme which provides an income maintenance payment to people who are providing elderly or incapacitated pensioners or certain persons with disabilities with full-time care and attention, and whose incomes fall below certain limits. There were 11,138 persons in receipt of carer's allowance at the end of September 1998, of whom 9,052, 81 per cent were in receipt of a payment at the maximum rate.

In its programme, An Action Programme for the Millennium, the Government is committed to progressively relaxing the qualifying criteria for the carer's allowance to ensure more carers can get the benefit, and increasing the value of the allowance in real terms. In line with these commitments, an overall review of the carer's allowance has been completed, which I launched this morning — Deputies probably received it in their pigeonholes this morning.

One of the proposals put forward in the review concerns an additional flat-rate payment, to be made once a year, as part of the carer's allowance. This payment recognises the need for respite care, although the manner in which the money is spent will be the choice of the carers. This proposal and the other proposals contained in the review will be considered in a budgetary context in the light of available resources.

Mr. McGrath

I compliment the Minister on the publication of the review of the carer's allowance which is worthwhile. I got it about an hour ago and have not had an opportunity to read it but it seems impressive. Will the Minister agree the review suggests there are about 50,000 carers in the country? There are 11,000 persons, or 20 per cent of carers, in receipt of carer's allowance. Will he agree there is need for a radical overhaul of the carer's allowance to facilitate the other 40,000 who are not in receipt of payments for this worthwhile work? Will he agree that caring, which is a 24 hour job, seven days a week, is a very difficult job and that there is need for respite care? The proposal in the review to give a lump sum payment to the carer, to be spent at their discretion, whether for a break, a holiday or for the person to go into a nursing home, is very good. Will the Minister expand on what is contained in the review? I realise he did not have an opportunity to consider it fully but his Department will be aware the payment of a lump sum was on the cards and will have had some discussion on how it will work. What are the proposals in that regard?

Mr. D. Ahern

I thank the Deputy for his remarks. The review was issued just before Question Time but that was not done on purpose. I wanted to have it launched and out in the open as quickly as possible. I had been exhorted by a number of lobby groups to launch it and today was the best day to do so. The review estimates there are 40,000 people, not 50,000——

Mr. McGrath

The review states that another 9,000 are looking after people in receipt of domiciliary allowance.

Mr. D. Ahern

I was about to say that. There are 40,000 over the age of 16 and about 9,000 between the ages of two and 16. I instituted this review on the basis that the carer's allowance needed to be looked at. It was acknowledged that there were considerably more people providing care and attention than were receiving the allowance. While all the proposals in the review are costly, they will have to be prioritised in the overall budgetary context. I acknowledge that people who assist others to stay in the home rather than go into institutional care deserve recognition and help from the State. That has always been the policy of my party and of this Government and will continue to be so.

Mr. McGrath

Will the Minister acknowledge that the review refers to the inadequacy of respite care and will he agree that about 12,000 carers could benefit from the respite proposal, which would cost only £1 million? Given the budget for the Minister's Department this is a small amount in the context of the number of people involved. Will the Minister agree this should be one of his priorities?

Mr. D. Ahern

It is one of the issues on my agenda but there are other issues in relation to carers that are causing difficulty, for example, full time care and attention, residency and so on, all of which are taken into account in the review. The review is clear on how these will affect people if changed and obviously we will look at costs in the overall situation.

Paul McGrath

Ceist:

37 Mr. McGrath asked the Minister for Social, Community and Family Affairs the plans, if any, he has to increase old age pensions to £100 per week; and his views on the proposal that pensions should be fixed as a percentage of average industrial earnings and therefore guarantee pensioners' income level. [18795/98]

Mr. D. Ahern

The question of fixing pension rates to a percentage of average industrial earnings was one of the recommendations in the report, Securing Retirement Income, arising out of the National Pensions Policy Initiative which the Pensions Board presented to me earlier this year. In response to the main recommendations of that report, I issued a four page document, Action on Pensions, which was circulated to all Deputies along with the report. For the first time in the history of the State, this document sets out a clear Government plan to secure the future of our older people.

The recommendations of the Pensions Board involve the development of strong first pillar social welfare pensions based on social insurance and major improvements in our second pillar, occupational and personal, pensions. The Government has noted the board's recommendation that the social welfare pension should be increased over a five to ten year period to 34 per cent of average industrial earnings and considers that any such increase in pension rates and the PRSI financing implications of such increases would have to be considered in the context of the overall budgetary situation.

A key priority of the Government's action programme for older people is a strong social welfare pension based on social insurance, including the achievement of an old age pension of £100 per week over a five year period, i.e. by 2002. An important step towards achieving this objective was taken through the £5 per week increase granted in the 1998 budget. Setting this goal shows the Government's distinct commitment to older people and is recognition of the special place of older people and of their contribution to the economy over the years. It recognises older people's contribution, through their endeavours and sacrifices, to the current favourable economic climate.

Mr. McGrath

The Minister's pension review group and the pre-budget submission of the Irish Senior Citizens' Parliament, a group of pensioners who meet to discuss problems affecting them, recommended that this should happen. Does the Minister agree that pensions have slipped behind in recent times in terms of the buying power? There has been quite substantial slippage over the past ten years in comparison to average industrial earnings. Does the Minister agree that linking pensions to average industrial earnings would remove the lottery element of budgets year after year? Pensioners are not sure how they will benefit from each budget. Changes such as the £5 increase this year — in some cases the increase did not amount to £5 — are at the discretion of the Minister. Does he feel we owe it to pensioners to guarantee their income by linking it to average industrial earnings?

Mr. D. Ahern

This issue has been examined time and again. The increase in the last budget was well ahead of the rate of inflation. I accept that over the years old age pensions have fallen behind. Because of this, one of our key policies on coming into Government was to significantly increase old age pensions. Our policy in relation to a rate of £100 is very significant and will assist old age pensioners in catching up in terms of the difficult situation they have experienced over the years.

Mr. McGrath

The Minister has not answered my question. Does he agree that linkage to average industrial earnings should be a priority of Government? Does he agree this would remove the uncertainty regarding pension increases and ensure pensioners knew where they stood?

Mr. D. Ahern

This issue has been examined time and again by the Pensions Board, the National Pensions Policy Initiative and in various studies which have been undertaken over the years. It is far more preferable for Governments to provide substantial increases in times when the economy is performing well. If pensions were linked to earnings, recipients would not have benefited to the same extent in the last budget.

Mr. McGrath

The economic situation has never been so good. Therefore, why not allow pensions catch up with average industrial earnings, thus ensuring a linkage in future?

Mr. D. Ahern

On coming into Government we made a commitment to significantly increase pensions. The National Pensions Policy Initiative proposed tagging pensions at 34 per cent, a figure which is to be aimed for. Our commitment over the next four years is to increase pensions to £100, something we will do.