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Dáil Éireann díospóireacht -
Tuesday, 27 Feb 2001

Vol. 531 No. 3

Written Answers. - Social Welfare Benefits.

Ivor Callely

Ceist:

302 Mr. Callely asked the Minister for Social, Community and Family Affairs the total monetary value of social welfare increases arising from the budget announcement; the total number of people that should benefit from such increases; and if he will make a statement on the matter. [5217/01]

At £850 million, the social welfare budget for 2001 is the biggest ever and more than double last year's welfare package. This allocation will, to an unprecedented extent, direct the resources of the State at the needs of our disadvantaged citizens and communities.

Among the most significant of these improvements are £25 and £30 increases in monthly child benefit for the lower and higher rates respectively, with increases to be paid three months earlier from June next; £10 a week increase for single old age pensioners; up to £25 a week increase for pensioner couples – 66 years and over; £12.90 per week special increase for contributory widows and widowers over 66 years; and £8 general increase in the weekly social welfare rates.

The full year cost in implementing the increases in the weekly rates of social welfare payments is almost £442 million and these increases will benefit 865,000 recipients and a further 124,000 qualified adults. The consequen tial increases in family income supplement will cost £13 million in a full year and will benefit some 17,500 families. The increases in monthly child benefit are set to benefit 532,000 families-1,043,000 children-at a cost of £329 million in a full year.
The social welfare budget package also includes a further range of improvements in the social welfare code costing £66 million in a full year. These improvements will benefit pensioners, widow, widowers, carers, people with disabilities, families and voluntary and community organisations.

Ivor Callely

Ceist:

303 Mr. Callely asked the Minister for Social, Community and Family Affairs the total expenditure under the supplementary welfare allowance scheme in 2000; if he can give a breakdown of such expenditure over the past five years; the measures which can be taken in order for such expenditures to be more productive; and if he will make a statement on the matter. [5218/01]

The provisional expenditure under the SWA scheme for 2000 was £255.9 million. The breakdown of this expenditure was £69.3 million on basic payments, £118.6 million on rent supplements, £4.6 million on mortgage interest supplements, £6.6 million on other supplements, including diet, travel and heating, £24.3 million on exceptional needs payments, ENPs, £10.7 million on back to school clothing and footwear, BSCF, and £21.8 million on administration.

Expenditure under the SWA scheme for the years 1995 to 1999 is set out in the following tabular statement. Total expenditure rose by £121.7 million or 91% in the five years between 1995 and 2000. Over half the increase, £63.9 million, was accounted for by rent supplement, where spending increased by 117% during the five years in question, mainly due to increases in rent levels. The Government has decided in principle to set up a new scheme of rent assistance which will be operated by the local authorities. Arising from this, more appropriate housing solutions will be offered to people with long-term housing needs and there will be less recourse to SWA rent supplement.

In addition, the SWA scheme is being reviewed as part of my Department's series of programme evaluations. The review is a fundamental appraisal of the scheme aimed primarily at improving customer service and administrative efficiency. All aspects of the scheme will be examined and opportunities for making these expenditures more productive will be carefully considered. The review also provides an opportunity to re-focus the scheme, and the health boards' community welfare service of which it is part, to become more effective in tackling poverty and social exclusion.

Expenditure under the SWA scheme 1995-1999

1995

1996

1997

1998

1999

Basic payments

£20.8m

£25.7m

£33.1m

£39.9m

£53.5m

Rent supplements

£54.7m

£62.6m

£75.3m

£88m

£101m

Mortgage supplements

£9.8m

£10.5m

£10.1m

£9.1m

£6.5m

Other supplements

£4.1m

£4.6m

£5.5m

£5.6m

£6m

ENPs

£17.8m

20.5m

£21.6m

£21.4m

£22.0m

BSCF

£12.3m

£12.9m

£11.9m

£11.7m

£9m

Administration

£14.7m

£17.4m

£18.1m

£20.9m

£21.8m

Total

£134.2m

£154.2m

£175.6m

£196.6m

£219.8m

Ivor Callely

Ceist:

304 Mr. Callely asked the Minister for Social, Community and Family Affairs the likely number of people who will now qualify for the free schemes arising from the budget announcement; and if he will make a statement on the matter. [5219/01]

As announced in budget 2001, from May 2001 the free schemes are to be extended to all persons aged 70 years and over, regardless of their income or household composition. This measure will benefit an estimated 43,000 new households who will now be eligible for the electricity-gas allowance, free television licence and telephone allowance. The cost of this measure will be £9.56 million in 2001 and £14.2 million in a full year. Applications for the extended scheme will be invited by way of press advertisement during the week commencing 4 March 2001.

A special information booklet with enclosed application form and return envelope will be available from local post offices, social welfare local offices and community information centres from 5 March 2001. Alternatively, the form may be downloaded from my Department's Internet site, www.welfare.ie, from that date. Further information can be obtained from 5 March 2001 by contacting my Department at freephone number 1800 400 400 or by e-mailing

freeschemes@welfare.ie.

Question No. 305 answered with Question No. 32.

Gerry Reynolds

Ceist:

306 Mr. G. Reynolds asked the Minister for Social, Community and Family Affairs the length of time a person from another EU country who emigrates to Ireland must be in residence before they become entitled to social welfare benefits, such as unemployment benefits and assistance, old age pensions and disability pensions. [5434/01]

Regulations on social security for migrant workers are directly applicable in all EU countries and in those in the European Economic Area – Iceland, Liechtenstein and Norway. The regulations are designed to protect the social security entitlements of persons who move to other member states. They apply to EU and EEA nationals only. The regulations provide that only the legislation of one member state applies for social security purposes and that the applicable legislation is normally the legislation of the country where the person is employed or self-employed or was last employed or self-employed before the claim was made.

Once a person emigrating here takes up employment or self-employment in Ireland, he becomes subject to Irish legislation for social insurance purposes and is eligible for benefits in the same way as other persons similarly insured. His periods of insurance completed in other member states can be added, if required, to whatever periods of insurance he has completed in Ireland to qualify for benefits. If the combined insurance is sufficient to satisfy the contribution conditions under Irish legislation, the person concerned could be covered against the various short-term contingencies such as sickness, maternity and unemployment almost as soon as employment is taken up.

The country of claim, Ireland in this case, would pay the full amount due at its rates of payment. This also applies in the case of invalidity pensions where the previous periods of insurance had been completed in certain States, including the UK. In the case of pensions for old age and retirement and, in certain cases, invalidity, each country where the person has completed periods of insurance of at least one year normally pays a pro rata pension which is in proportion to the periods of insurance actually completed under its legislation, If, however, there is a higher amount due under a country's legislation alone, this higher pension amount is payable instead of the pro rata pension. Pensions due are paid in accordance with the rules for the commencement of such pension payments in each country concerned. There are no periods of residence conditions for entitlement to social assistance payments in Ireland. Accordingly, a person who is properly resident here is eligible for these payments on the same basis as other residents subject to satisfying the standard eligibility conditions.

Gerry Reynolds

Ceist:

307 Mr. G. Reynolds asked the Minister for Social, Community and Family Affairs the entitlements a person from another EU country, who has been contributing to a public pension scheme in his own country, is entitled to under our system when he moves here. [5435/01]

Regulations on social security for migrant workers are directly applicable in all EU countries and in those in the European Economic Area - Iceland, Liechtenstein and Norway. The regulations are designed to protect the social security entitlements of persons who move to other member states. They apply to EU and EEA nationals only and do not apply to occupational and personal pension schemes.

If a person to whom the regulations apply takes up employment or self-employment after moving here, he is entitled to have the periods of insurance completed in the other country added to any periods of insurance completed in Ireland to qualify for benefits under legislation, as if these periods completed abroad had been completed in Ireland. Benefits for short-term contingencies such as sickness, maternity and unemployment would normally be paid under Irish legislation and at the Irish rates of payment. This also applies in the case of invalidity pensions where the periods of insurance had been completed in certain EU states, including the United Kingdom.

In the case of pensions for old age, retirement, widowed persons and, in certain cases, invalidity, a pension amount is paid by each country where the person had completed periods of insurance of at least one year. The pension amounts are usually in proportion to the periods of insurance actually completed in each country and are normally referred to as pro rata pensions. Thus, if in a career of 40 years, a person had completed 20 years insurance in each of two countries, he would qualify for a pro rata pension approximately equivalent to half a full pension from each country. However, if he had enough insurance to qualify for a pension in his own right under the legislation of a country, then this pension amount and the pro rata pension amount would be compared and the higher of the two would become payable.

An EU national from another EU country entitled to reside here would also be eligible for other benefits due to residents, such as child benefit, even if the child was living in another member state, benefits under social assistance and health services, provided he satisfies the conditions for entitlement which apply to other residents. If he was already receiving a pension from another member state or became entitled to one while resident here, the pension would be payable to him in Ireland in the currency of the state making the payment. Special rules apply in certain cases to frontier workers such as a person working in Northern Ireland and residing in the Republic of Ireland. For example, if he became unemployed, the benefit due would be paid by the Republic of Ireland.

Nationals of countries to which the regulations do not apply must rely on the provisions of national legislation alone for benefit entitlements if they move to other countries, unless they are from a country with which Ireland has a reciprocal agreement. These include Australia, Austria, Canada, Quebec, New Zealand, UK and the USA. These apply mainly to pensions and, in the case of Austria and the UK, only apply where the EU regulations are not applicable. Persons not covered by the EU regulations and the reciprocal agreements, but who are entitled to be resident and employed or self-employed in Ireland, would be eligible to become insured under Irish legislation, but no account could be taken of periods of insurance completed abroad to assist them qualify for benefits or pensions.
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