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Dáil Éireann díospóireacht -
Tuesday, 27 Feb 2001

Vol. 531 No. 3

Written Answers. - Social Welfare Benefits.

Bernard J. Durkan

Ceist:

328 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will consider reducing the qualifying age for old age pension and all attendant free schemes to 65; and if he will make a statement on the matter. [6007/01]

While the position will be kept under review, I have no plans to lower the qualifying age for receipt of old age contributory and non-contributory pensions, which currently stands at 66 years.

Any reduction in the qualifying age would have major financial implications and in view of future demographic projections, would only serve to increase pressure on future pensions and free schemes financing and provision.

Bernard J. Durkan

Ceist:

329 Mr. Durkan asked the Minister for Social, Community and Family Affairs the number of recipients of various means tested payments who, in the past 12 months on qualifying for a further or alternative payment, actually receive a reduction in income; and if he will make a statement on the matter. [6008/01]

The Department of Social, Community and Family Affairs administers a broad range of income support payments, comprising insurance – PRSI – based payment and social assistance – means tested – payments. The system is a contingency based one. Therefore, in order to qualify for a social welfare payment a person will first have to experience one of a number of contingencies, such as sickness, maternity, unemployment, old age, retirement, invalidity, widowhood, etc.

However, it is possible for a person to experience more than one contingency at any one time. For instance, a widow could also be caring for another person. In this case, the woman could have an entitlement to both widow and widower's non-contributory pension and carer's allowance at the same time. As the concurrent payment of more than one payment is generally not allowed under the social welfare code, the woman would normally opt for the more financially beneficial payment, in this case the carer's allowance.

There are cases where, because of a change in circumstances, a recipient of a means tested payment is no longer entitled to that payment, but may qualify for another payment payable at a lower rate. For example, a carer who ceases caring duties will lose entitlement to the carer's allowance, that is, £80.50 a week, but may qualify instead for unemployment assistance, that is, £77.50 a week, if the person is available for and genuinely seeking employment.
A number of the means-tested payments are payable only up to age 66 years, at which stage the old age non-contributory pension is payable. Under the provisions of the old age non-contributory pension scheme, means are generally assessed on a more favourable basis than they are under other social assistance schemes, including the unemployment assistance, pre-retirement allowance, farm assist and disability allowance schemes. Accordingly, a person who had been in receipt of one of these payments would, in the normal course, qualify for the old age non-contributory pension on reaching 66 years, the rate of which would generally be higher than that which they had previously been receiving.
However, there will be some cases where a person would qualify for an old age pension at a lower rate than unemployment assistance, disability allowance, etc. For instance, a person's income position can change on reaching pension age, that is, the person or the spouse may qualify for an occupational pension or a social security pension from another State. Such income would then be assessable for old age pension purposes.
I have also indicated to the Deputy on a number of previous occasions that there are a small number of cases where claimants for the old age non-contributory pension may be assessed with higher means than they had formerly been assessed with under the disability allowance scheme. This arises because of variations in the operation of the former disabled person's maintenance allowance scheme prior to its take-over by my Department.
Because of the variety of circumstances in which a person may transfer from one means-tested payment onto another, it is not possible to compile statistics on the basis requested by the Deputy.
The operation of the various means-tested payments administered by my Department is kept under review. While the principle of consistency across all social welfare means tests is desirable, it is important that this is balanced against the need to ensure that the social welfare system retains enough flexibility to be able to respond adequately to the specific needs of differing categories of customers. The different methods of assessing means as between the various social assistance payment schemes reflect, in many instances, specific policies being pursued by my Department, which are aimed at targeting particular groups of recipients for special attention.

Bernard J. Durkan

Ceist:

330 Mr. Durkan asked the Minister for Social, Community and Family Affairs if he will ensure recipients of a particular means tested payment, on qualifying for an alternative payment, will at all times be offered the traditional facility of opting for the higher payment available to them; and if he will make a statement on the matter. [6009/01]

It is the policy of my Department, where a person is qualified for payment under more than one scheme, to ensure that the person availed himself or herself of the more favourable payment. This type of situation arises on a regular basis, that is, where a person is qualified in his or her own right for a payment and simultaneously as a qualified adult on their spouses payment. The fact that in some cases a payment carries entitlement to additional benefits such as the free schemes means that it is not always a matter of simply opting for the higher rate of payment. In these situations the person is informed of the position and invited to make a choice.

If the Deputy has a particular case in mind, where difficulties arose in this regard, I will be happy to have it investigated by my Department, if he supplies the relevant details.

Questions Nos. 331 and 332 answered with Question No. 44.

Bernard J. Durkan

Ceist:

333 Mr. Durkan asked the Minister for Social, Community and Family Affairs the number of payments which are currently the subject of means tests; the extent to which such means tests have been liberalised in each of the past four years; and if he will make a statement on the matter. [6012/01]

Bernard J. Durkan

Ceist:

334 Mr. Durkan asked the Minister for Social, Community and Family Affairs the proposals he has to update all means tests in line with inflation and growth in GDP; and if he will make a statement on the matter. [6013/01]

I propose to take Questions Nos. 333 and 334 together.

The purpose of the means tests which are applied to the various social assistance schemes administered by my Department is to ensure that the limited resources available are directed at those most in need. In assessing means account is taken of any cash income a person may have, for example, earnings from employment, together with the value of any capital or property. In addition, in the case of the unemployment assistance and supplementary welfare allowance schemes, the value of any benefit or privilege enjoyed by an applicant, such as the board and lodging in the family home, is assessed in certain circumstances.

It is estimated that there will be some 419,000 recipients of means tested social assistance payments in 2001. The maximum level of means allowed under the various means tests is adjusted annually in line with the increases in the maximum weekly rates of payment. For instance, in the past four budgets weekly social assistance payments have been increased by between 26.7% and 41.5%. These increases are well in excess of the rate of inflation over the same period and represent real increases ranging between 11% and 24%. The maximum means thresholds have been similarly increased over the last four years.
The question of using alternative mechanisms for up-rating the rates of social welfare payments is currently being considered by a working group, which has been established under the Programme for Prosperity and Fairness. This working group is examining the range of complex issues associated with the adoption of alternative indexation measures for social welfare payments, including the long-term economic, budgetary, PRSI contribution, distributive and incentive implications involved, in light of trends in economic, demographic and labour market patterns.
A list of various improvements in the means tests introduced in each of the last four budgets is set out in the following table:

Year

Improvement in Means Test

1998

–Calculation for Family Income Supplement (FIS) changed from a gross income to a net income basis;–FIS weekly income thresholds increased by £7;–The weekly rehabilitative earnings disregard for Disability Allowance and Blind Person's Pension purposes was increased from £36.30 to £50;–Non-national Disability Pensions up to the level of maximum rate of Old Age Contributory Pension were disregarded for Carer's Allowance purposes;–Rental income was exempted from the assessment of means for Widow/er's (Non-Contributory) Pension purposes, where income is in respect of a person who lives with and pays rent to the pensioner;–Revised arrangements for assessing capital were extended to the rent allowance scheme for former controlled tenancies (i.e first £2,000 disregarded, next £20,000 assessed at 7.5% and balance assessed at 15%);–Existing disregard for income under the REPS Scheme which applied to the Unemployment Assistance, Pre-Retirement Allowance and Old Age (Non-Contributory) Pension schemes improved. First £2,000 exempted with the balance being assessed at 50%. Enhanced arrangements also extended to the special scheme of compensation for compliance with the Special Areas of Conservation conditions.

1999

–Introduction of new means-tested Farm Assist scheme with enhanced income disregards for farmers on low income;–Improvements in the operation of the means test for Unemployment Assistance for fishermen along the lines of the improvements for farmers under the Farm Assist scheme;–FIS weekly income thresholds increased by £8;–Existing weekly spousal income disregard of £150 for Carer's Allowance extended to couple's joint income and £75 disregard applied in respect of carer's own income;–The upper income limit for the purposes of tapering the withdrawal of the Qualified Adult Allowance was increased from £90 to £105;–The means limit for Fuel Allowance was increased from £15 to £30 above weekly social welfare payment.

2000

–FIS weekly income thresholds increased by £13;–Major improvements in the assessment of capital for all means tested schemes (other than Supplementary Welfare Allowance), with the first £10,000 being disregarded and the method of assessing the value of capital above this level improved; –The weekly rehabilitative earnings disregard for Disability Allowance and Blind Person's Pension purposes was increase from £50 to £75;–Further improvements in the assessment of means under the Farm Assist scheme and for fishermen claiming Unemployment Assistance;–A number of improvements were made to the arrangements whereby people retain Supplementary Welfare Allowance Rent and Mortgage supplements on returning to work under schemes such as Community Employment, Back to Work Allowance and Revenue Job Assist;–Improvements in the operation of the arrangements for tapering the withdrawal of the Qualified Adult Allowance, including an increase in the income range over which the tapering arrangements apply from £60 to £105 up to £70 to £135 and an extension of the improved tapering arrangements to recipients of Old Age Contributory, Retirement and Invalidity Pensions;–The amount of the gross proceeds from the sale a pensioners principal residence which can be exempted for means test purposes was increased from £75,000 to £150,000;

2001

–FIS weekly income thresholds increased by £25;–Existing weekly income limits of £75 (single) and £150 (couple) for Carer's Allowance purposes being increased to £125/£250;–Provisions limiting the overall amount of Disability Allowance payable where the spouse is in receipt of another social welfare payment being abolished;–Provisions which enable pensioners on means tested payments to exempt up to £150,000 from the gross proceeds from the sale of their principal residence to be extended to recipients of Disability Allowance;–People in receipt of One-Parent Family Payment to be allowed to retain 50% of any maintenance received;–Exemption of the Health Board Allowance for frail elderly people boarded out for means test purposes;–The means limit for Fuel Allowance to be increased from £30 to £40 above weekly social welfare payment;–Easing of the clawback of budget increases in pensions for SWA Rent and Mortgage Supplement purposes by £5 per week;–Increase in the upper ceiling for tapered Qualified Adult Allowance arrangements from £135 to £145;

Year

Improvement in Means Test

2001

–Disregard meal and travel allowances paid while on training courses to recipients of Unemployment Assistance and One Parent Family Payment in respect of approved/appropriate courses on a short-term duration by FÁS etc.;–Exempt grants under European Social Fund and VEC scholarship schemes for Unemployment Assistance and Farm Assist purposes;–Disregard amounts paid by Health Boards towards the care of Foster Children for the purposes of assessing income for entitlement to Qualified Adult Allowance.

Questions Nos. 335 and 336 answered with Question No. 47.

Billy Timmins

Ceist:

337 Mr. Timmins asked the Minister for Social, Community and Family Affairs if persons over 75 years of age can obtain a fuel allowance, irrespective of means; and if he will make a statement on the matter. [6047/01]

The aim of the national fuel scheme is to assist householders who are on long-term social welfare or health board payments and who are unable to provide for their own heating needs. A payment of £5 per week is paid to eligible households and £8 per week is paid in smokeless zones.

The conditions of the scheme are that the applicant must satisfy a means test, and must live alone or only with qualified dependents, a carer, a person in receipt of a short-term unemployment assistance payment or a person who qualifies for a fuel allowance in their own right. There are no exceptions to these conditions on the basis of age and, consequently, people who are over 75 years of age must also satisfy the means test.

People who qualify for means tested pensions or allowances such as old age non-contributory pension are accepted as satisfying the means test. However, if the household includes a person who is in receipt of disability benefit, unemployment benefit or occupational injury benefit, then that household will not qualify for a fuel allowance. The benefit recipient could qualify for a £3 smokeless fuel allowance if they are residing in one of the specified areas and are on benefit for more than three months.

In the case of contributory pensioners such as old age contributory, retirement and invalidity pensioners, the income of the qualified adult is assessable as means for the purpose of entitlement to a fuel allowance. A person may now have a combined household income of up to £30 per week or savings-investments of up to £30,000 over and above their pension and still qualify for fuel allowance.

I am conscious of the need to simplify the social welfare and related systems, whenever possible. The Deputy will be aware that progress is being made in relation to easing the means tests for schemes such as free electricity and for the medical card. At present, the free schemes are not subject to a means test in the case of people aged 75 years or more and the means test for the free schemes is being abolished for people aged 70 and above from May 2001.
I recognise the importance of fuel allowances to pensioners and am providing an additional £6 million for the scheme this year. The income limit to which I referred will be increased to £40 from October 2001.
In addition, the fuel season has been increased from 26 weeks to 29 weeks, as announced in the 2001 budget. The current fuel season will be extended by two weeks in April 2001 and the next fuel season will start one week earlier in October 2001.
Any further changes in eligibility for fuel allowances would have to be considered in a budgetary context and in the light of alternative proposals for delivering improvements in social welfare supports to pensioners and others.
There is a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances who have special heating needs. An application for a heating supplement may be made by contacting the community welfare officer at the local health centre.
Where a person would not normally qualify for a heating supplement there is provision under the supplementary welfare allowance scheme to pay an exceptional needs payment, exceptional needs payments are payable at the discretion of the health board taking into account the requirements of the legislation and all the relevant circumstances of the case.
Question No. 338 answered with Question No. 44.
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