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Dáil Éireann díospóireacht -
Tuesday, 15 Feb 2000

Vol. 514 No. 3

Written Answers. - Social Welfare Benefits.

Brendan Kenneally

Ceist:

276 Mr. Kenneally asked the Minister for Social, Community and Family Affairs the means by which each level of contributory old age pension is calculated; if a set percentage is applied at each level each year; if the difference each year is a specified monetary amount; the plans, if any, he has to change the method of calculation; and if he will make a statement on the matter. [4167/00]

One of the qualifying conditions for entitlement to the old age contributory pension requires that the claimant achieves a certain standard number of social insurance contributions. Where this standard is met, payment is made at the maximum rate. However, even where this standard has not been achieved, payment can still be made in certain cases, but at a reduced rate.

The actual rates of reduced pension are determined by the number of contributions paid. The level of pension payable in such cases is generally set as a percentage of the maximum payment.

For example, a yearly average of 48 contributions is required in order to qualify for the maximum rate of old age contributory pension, currently £89 a week. Reduced rate pensions ranging between 92% and 98% of the maximum pension are paid where a person has a yearly average of between 20 and 47 contributions. As can be seen, these reduced rates of pension are not paid in direct proportion to the periods of insurance completed. This system was designed to ensure reduced rate contributory pensions were pitched higher than the maximum rate of old age non-contributory pension, thereby obviating the need to supplement the contributory pensions scheme by way of Exchequer subvention.

Special measures have been introduced however in recent years, in light of difficulties which have arisen in the case of certain categories of workers, so as to extend entitlement to reduced rate contributory pensions to additional categories of workers. These special reduced rate pensions have been set at 25%, 50% and 75% of the maximum rate pension. These levels of reduced rate pensions are very favourable when account is taken of the relatively low number of contributions paid in these cases. For example, a person with a yearly average of, say, ten contributions, that is, one-fifth of the required standard for the maximum pension, can still receive a pension at half the maximum rate.

My Department has recently been reviewing the qualifying conditions for old age contributory and retirement pensions. One of the issues examined as part of this review is the current structure of the contributory rate bands. Arising from this review, I have made provision in the Social Welfare Bill, 2000, for an improvement in the structure of the payment bands for old age contributory and retirement pensions. Accordingly, some 38,000 pensioners currently receiving reduced rate of old age contributory and retirement pensions ranging from £81.90 to £86.60 a week will have their personal rate of payment increased to £94.10 a week, from May 2000. This will mean overall increases in personal weekly rates of pension of between £7.50 and £12.20 for people in this category.

With regard to the question of the level of budgetary increases provided for recipients of reduced rate contributory pensions, this matter is determined by the existing percentage relationship between the reduced rate and the appropriate maximum rate of payment. This is the system which has operated since the introduction of the old age contributory pension scheme and it applies equally where the general increases are provided on a percentage basis or, as has been the case in recent years, on a monetary basis.

Michael Ferris

Ceist:

277 Mr. Ferris asked the Minister for Social, Community and Family Affairs if he has received a report of the review group on the possibility of extending free travel facilities to recipients of disability allowance when attending community workshops where no other transport is available. [4195/00]

A free travel pass automatically issues to all recipients of disability allowance at the time their disability allowance is awarded. A free travel companion pass is issued to recipients of disability allowance who are medically assessed as being unfit to travel alone. This type of pass allows any one person, aged 16 or over, to accompany the pass holder free of charge when travelling. An unrestricted free travel pass is available to recipients of disability allowance who have a mental disability; attend a long-term rehabilitative course recognised by this Department – the course must be full-time, that is from 9 a.m. to 5 p.m. Monday to Friday and last for at least three months; or are aged 16 to 18 and studying at a special second level school for people with a disability.

This type of pass allows the pass holder to avail of free travel during the times normally restricted for standard free travel pass holders.

The Department of Health and Children operates a mobility allowance scheme to provide financial support for severely disabled people who are unable to walk or use public transport. This allowance is available to applicants over the age of 16 and under 66 and may be used to finance taxi journeys. That Department also administers the motorised transport grants scheme to provide financial assistance for disabled persons who may need a car to obtain or retain employment or who are living in very isolated circumstances and have serious transport problems. Issues in relation to this area are a matter for my colleague, the Minister for Health and Children.

I understand the Deputy is referring to the use of the free travel pass on transport services that are generally provided by the health boards and do not form part of the free travel scheme. I am not aware of a review group that is examining the possibility of extending free travel facilities to encompass these types of services. This would appear to be more relevant to my colleague, the Minister for Health and Children.

A fundamental review of the free schemes of this Department is being conducted to assess whether the objectives of these schemes are being achieved in the most efficient and effective manner. This includes an examination of the qualifying conditions for the schemes, the target groups and the scope for alternative policy arrangements.

The review of the free schemes is being conducted by an official of my Department on secondment, as a visiting research fellow at the Policy Institute, Trinity College, Dublin. It is expected that the research conducted will be for mally published by the Policy Institute in the Trinity Studies in Public Policy series in March 2000.

Jim O'Keeffe

Ceist:

278 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to introduce a continual care payment as recommended in the review of the carer's allowance. [4203/00]

The review of the carer's allowance, published in October 1998, recognised that the caring role can differ widely in relation to care intensity and the time and stress involved. It proposed the introduction of a new continual care payment to formally recognise those carers who are providing the highest levels of care and to promote care in the community. The review envisaged that the payment would be available to carers who provide care for those who are in the highest category of dependency and would be paid irrespective of income or social welfare entitlement.

In order to differentiate between the levels of care and care needs, the review considered that a needs assessment encompassing the needs of the care recipient and the carer should be introduced, and that the continual care payment could be introduced following the introduction of such an assessment. It was considered that a needs assessment would separate care needs from income support needs and could be used by all State organisations which provide reliefs or grants for those in need of care. A working group, chaired by the Minister of State at the Department of Health and Children, Deputy Moffatt, and comprising membership from the Department of Social, Community and Family Affairs and the health boards has been established to examine the feasibility of introducing such a needs assessment approach.

One of the key priorities identified in the Government's review of An Action Programme for the Millennium is to establish a pilot system of needs assessment for carers and people needing care to be operated by the health boards. This area is the responsibility of my colleague, the Minister for Health and Children. The introduction of a continual care payment will be examined further following the outcome of this pilot scheme.

Richard Bruton

Ceist:

279 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that glutaraldehyde is listed as a respiratory sensitor by the Health and Safety Authority and has not been included in the scheme covering occupational injury and his Department is disallowing claims of occupational asthma on grounds that it has not recognised certain activities using this chemical as prescribed occupations for occupational asthma. [4204/00]

Richard Bruton

Ceist:

280 Mr. R. Bruton asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the grounds of refusal of occupational injury benefit to a person (details supplied) in Dublin 3 which is to be appealed; and if this case will be assessed fairly on its merits without a change in his Department's guidelines on occupational asthma. [4205/00]

It is proposed to take Questions Nos. 279 and 280 together.

The legislation governing the occupational injuries scheme provides entitlement to disablement benefit for persons suffering from certain prescribed diseases listed in the legislation, where they have contracted the disease in the course of their employment. Where a person has contracted one of the diseases listed in the legislation, benefits are payable only if they were employed in an occupation which is specifically prescribed in relation to that disease. Occupational asthma is a prescribed disease in relation to employments where there is exposure to certain specified agents. Glutaraldehyde is not included in the list of causative agents for occupational asthma.

The person concerned made a claim for disablement benefit and unemployability supplement under the occupational injury benefit scheme on 24 September 1999 in respect of occupational asthma which she claimed to be due to exposure to glutaraldehyde. Her claim was disallowed by a deciding officer. She has appealed against this decision and arrangements are being made to have her appeal heard as soon as possible.

The functions of the health and safety authority differ from those of my Department and many substances listed as hazardous by the authority would not be appropriate in the context of the occupational injuries scheme.

A working group headed up by the Department's chief medical adviser has recently been established within the Department to review the current list of prescribed diseases and employments and to make recommendations on any appropriate amendments, deletions and additions that should be made to it in light of current medical knowledge and having regard to changing work environments. The working group, as part of its deliberations, will consider the question of whether employments which have exposure to glutaraldehyde should be added to the list.

John McGuinness

Ceist:

281 Mr. McGuinness asked the Minister for Social, Community and Family Affairs the plans, if any, he has to increase the amount a spouse of an unemployed person is allowed to earn before the benefit of that person is affected; and when this amount was last increased. [4339/00]

The income limit of £60 referred to by the Deputy was set by way of regu lations in June 1993. At that time, once the income of the spouse of a welfare claimant exceeded that threshold, the qualified adult allowance was withdrawn in its entirety. In addition, the rate of child dependant allowance payable was halved. In the interim, however, I have introduced regulations which currently provide for the tapered withdrawal of the QAA for claimants of certain welfare payments where the spouse of the claimant has an income of between £60 and £105 per week.

A range of further significant improvements to these tapering arrangements which will take effect from April of this year were announced in the recent budget. Most notably, these changes include: an adjustment in the income range over which the tapering arrangements apply from the current £60 – £105 to £70 – £135; an improvement in the withdrawal rate of QAA; the deferral of the reduction of 50% in the level of child dependant allowances, which currently takes effect when the income of the spouse exceeds £60, until such income exceeds £135.

I am also providing for the extension of tapering arrangements to long-term welfare payments such as invalidity pension, retirement pension and old age contributory pension with effect from April 2000. In effect, this means that all relevant welfare schemes will now be covered by tapering arrangements.

Nora Owen

Ceist:

282 Mrs. Owen asked the Minister for Social, Community and Family Affairs the additional facilities, if any, he has made available for old age pensioners during 2000; and if he will make a statement on the matter. [4379/00]

One of the key priorities of this Government is to secure the future of our older people. The Social Welfare Bill, 2000, which I published yesterday, provides for investment of over £428 million in social welfare measures as well as reductions in PRSI and health contributions. This represents an increase of £128 million since the budget, aimed mainly at improving the position of pensioners, people with disabilities and those on low income.

In relation to pensioners, the following improvements will be put in place during the course of this year. In respect of pension rates the Government, in its review of An Action Programme for the Millennium, committed to advancing the goal of bringing the rate of the old age contributory and retirement pensions to £100 and to extending this commitment to all social welfare old age pensioners by 2002. We have also committed to increasing old age pension rates in line with increases in average earnings over the life-time of this Government. Accordingly, an increase of £7 per week in percentage terms between 7.9% and 8.9% has been provided for pensioners aged 66 and over and for people aged 65 on retirement and invalidity pensions. The maximum personal rate of the old age contribu tory and retirement pensions will increase from £89 to £96 from May 2000 which equates to 30% of average industrial earnings. In addition, as part of the process of aligning the implementation of tax and social welfare increases by 2001, the improved payments will take effect four weeks earlier this year, from the beginning of May.
Other significant improvements are: increases of £4 per week – in percentage terms between 5.2% and 5.6% – in the personal rates of other pensions; improvements in the structure of the payment bands for old age contributory and retirement pension – some 38,000 pensioners who are on reduced rate pensions ranging from £81.90 to £86.60 per week will have their personal rate of pension increased to £94.10 from May 2000 and this will mean overall increases in personal rates of pension of between £7.50 and £12.20 for people in this category; special increases in the qualified adult allowance – QAA – rate of £4.70 per week for recipients of old age contributory pension and £7.50 per week for those on old age non-contributory pension – again, these will be effective from May 2000 and this is the first step, over a three year period, towards increasing the QAA rate to 70% of the main rate and extension of tapered QAA to recipients of old age contributory and retirement pensions from October 2000 to allow for an income range for a qualified adult of between £70 and £135.
There will be new arrangements for the assessment of capital for non-contributory pensions. The first £10,000 of capital will be completely disregarded. Capital between £10,000 and £20,000 will be assessed on the basis of £1 weekly means for each £1,000 of capital; capital between £20,000 and £30,000 will be assessed on the basis of £2 weekly means for each £1,000 of capital, and capital above £30,000 will be assessed on the basis of £4 weekly means for each £1,000 of capital. These limits will be doubled in the case of a married couple.
Certain people who paid contributions prior to 1953 under the old national insurance scheme have failed to qualify for an old age contributory pension. A special pension is, therefore, being introduced for those who have at least five years contributions paid since they entered social insurance. From May 2000, this new pension will be paid at 50%, that is, £48, of the maximum weekly personal rate. Equivalent increases for adult and child dependants will be paid, where applicable. Some 3,000 people are expected to gain from this measure.
In respect of measures for carers from April 2000 disability benefit PRSI contribution conditions will be relaxed for former carers. From May 2000 there will be a rate increase. From June 2000 the annual respite care grant is to be increased by £100 to £300. From September 2000 the back-to-education allowance scheme is to be extended to carers after ceasing caring responsibilities. From October 2000 the free electricity allowance and free television licence schemes are to be extended to qualified carers. The introduction of a new carer's benefit scheme is also being provided for.
The new carer's benefit scheme is specifically intended to support people who must leave the workforce to care for someone who is in need of full-time care and attention. The carer's benefit scheme involves two central elements. The first is a weekly income support payment to be operated and paid by this Department. This will be based on PRSI contributions paid by the carer. The second is the protection of the carer's employment rights for the duration of the caring period. The maximum duration of the scheme will be 15 months and the scheme will be introduced in October 2000.
In respect of bereavement the current practice is that following the death of a recipient of a social welfare payment, his or her spouse continues to receive payment at the same rate for six weeks in circumstances where both spouses had a separate entitlement provided one or both of the entitlements was a non-contributory old age pension, a blind pension or a carer's allowance or where the payment includes a payment for a qualified adult. The payment does not arise where each spouse had an independent entitlement to an insurance based contributory pension. A number of additional measures are being introduced in the Social Welfare Bill, 2000, to address the position where the six weeks after death payment is not currently made or is paid at a reduced amount. These measures are as follows: where a pensioner and his or her spouse-partner are each in receipt of an old age contributory or retirement pension and if either party dies, a six weeks payment of the deceased person's pension will be made to the survivor. Under the current arrangements no after death payment is made in these cases.
Where a person who is in receipt of an old age non-contributory pension or blind person's pension dies and his or her spouse-partner is in receipt of an old age contributory or retirement pension, a six weeks payment of the deceased person's non-contributory pension will be paid to the survivor in addition to his or her own personal rate of contributory pension. At present an amount equal to the qualified adult allowance only is payable.
Where the only dependent child of a person in receipt of one-parent family payment dies, the parent will receive the same amount of the one-parent family payment for six weeks following the death of the child. At present the parent receives only the child dependant allowance.
These measures will be introduced from April 2000 and will mean that a six weeks after death payment now applies in all circumstances under the social welfare code.
A review of the free schemes is being conducted by an official of the Department on secondment, as a visiting research fellow at the Policy Institute, Trinity College, Dublin. It is expected that the research conducted will be formally published by the Policy Institute in the Trinity Studies in Public Policy series in March 2000. In anticipation of the review findings, two specific measures were announced in budget 2000 as follows: the extension of the free schemes to all persons aged 75 years and over, regardless of their income and household composition; the extension of the free electricity allowance and free television licence to all carers in receipt of the carer's allowance and to carers caring for people in receipt of constant attendance or prescribed relative's allowance. Both measures will be implemented from October 2000.
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