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Dáil Éireann díospóireacht -
Tuesday, 5 Nov 2002

Vol. 556 No. 3

Written Answers. - Social Welfare Payments.

Michael Ring

Ceist:

734 Mr. Ring asked the Minister for Social and Family Affairs if her Department will review a claim for an old age contributory pension by a person (details supplied) in County Mayo. [20080/02]

In March 2002, the person concerned was awarded an old age non-contributory pension at the reduced rate of €60.70 per week, based on his net income. This rate includes a living alone allowance of €7.70 and a fuel allowance of €9.00 payable during the heating season. Following an appeal to the social welfare appeals office, a question has arisen in relation to his means. The person concerned has supplied additional information in relation to the question at issue and this is being considered at present. He will be notified of the outcome as soon as possible. In the meantime, payment of his pension will continue at the rate indicated.

Michael Ring

Ceist:

735 Mr. Ring asked the Minister for Social and Family Affairs the reason a person (details supplied) in County Mayo is being penalised when they genuinely submitted the document in June 2002 for farm assist; and when this person will receive payment from 28 July 2002 to date. [20126/02]

Persons in receipt of farm assist are required to complete and return annually a declaration form regarding their current circumstances. A review of entitlement to farm assist is carried out based on the response. If a completed declaration form is not returned, payment is automatically suspended. The person concerned was in receipt of farm assist from 11 September 2000. A farm assist declaration form was issued to him in June 2002. His weekly rate of payment at that time was €248.00. When no reply was received, his payment was stopped with effect from 23 July 2002. The person concerned first contacted his social welfare local office regarding the suspension of his payment on 23 October 2002. His weekly farm assist was reinstated from that date. His entitlements in the intervening period are currently being examined.

Pat Carey

Ceist:

736 Mr. Carey asked the Minister for Social and Family Affairs the basis on which persons (details supplied) in Dublin 11, had entitlement to the free schemes when one of them was working and the other was in receipt of a social welfare payment; and the reason they are not eligible for the schemes when both are now in receipt of social welfare payments and, consequently, on a reduced level of income. [20183/02]

In order to qualify for the various household benefits, a person must be living alone or only with certain excepted categories of people. These categories include spouses in respect of whom applicants are receiving a qualified adult allowance. A qualified adult allowance can remain in payment at proportionately reduced rates where the spouse concerned is earning up to €196.81 per week. Spouses who are in receipt of unemployment benefit in their own right are not excepted for household benefit purposes. In the case of the couple concerned, the husband qualified for electricity allowance and free television licence in June 2001. At that time, he was in receipt of retirement pension and a reduced rate qualified adult allowance in respect of his wife, who was in employment. Under the household benefits rules, his entitlement to these ceased when his wife qualified for unemployment benefit in her own right in 2002.

The apparent anomaly highlighted by the Deputy in this case arises from the fact that the qualified adult allowance may be payable in conjunction with earnings from employment and the loss of employment results in a reduction in household income. The income to the couple from the social welfare system has, however, increased. Arising from the Deputy's concern I will consider the matter in the context of the budget and its cost implications. An expansion of household benefits conditions to cover the circumstances such as that of the couple concerned would have cost implications and would have to be considered in a budgetary context in the light of other priorities.

Róisín Shortall

Ceist:

737 Ms Shortall asked the Minister for Social and Family Affairs the number and estimate of recipients of the fuel allowance for each of the years since 1997; the number of recipients in each of the years who were or are in receipt of an old age pension and other social welfare payment or means other than a social welfare payment but qualify by satisfying the means test; and if she will make a statement on the matter. [20184/02]

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. In order to be eligible an applicant must be in receipt of a qualifying social welfare or health board payment, must satisfy a means test and must live alone or only with specified persons. People who qualify for means tested pensions or allowances such as old age non-contributory pension, unemployment assistance or one parent family payment automatically qualify for fuel allowance. The majority of people who receive fuel allowances qualify because they satisfy the relevant means test for their primary weekly payment. In the case of contributory pensions such as old age contributory, retirement and invalidity pensions which are not means tested, a person may have a combined household income of up to €50.79 per week or savings/investments of up to €41,901.35 over and above their pension and still qualify for fuel allowance.

Special arrangements have been in place for a number of years which allow people who are participating on approved employment schemes such as back to work allowance and community employment to retain entitlement to secondary benefits, including the fuel allowance, subject to a weekly household income limit of €317.43. A detailed breakdown of the number of fuel allowance recipients for 1997 is not available. The breakdown for the years 1998 to 2001 is shown in the following tabular statement.
Breakdown of Fuel Allowance recipients for 1998-2001

1998

1999

2000

2001

Pensions

Old Age (Contributory)

17,513

17,698

17,539

17,418

Old Age(Non-Contributory)

39,067

39,082

39,032

38,950

Retirement

18,360

20,526

21,899

22,730

Widows/Widowers(Contributory)

40,852

40,737

40,865

40,505

Widows/Widowers(Non-Contributory)

9,774

9,768

9,611

9,439

Blind Person's

860

847

816

792

Invalidity

13,719

14,287

14,445

15,087

British (various)

2,556

2,515

2,655

2,681

Total Pensions

142,701

145,460

146,862

147,602

Single Parent Families

One-parent FamilyPayments

36,534

39,089

40,821

42,177

Deserted Wife's Benefit

7,515

7,182

6,877

6,634

Deserted Wife'sAllowance

1,327

1,264

1,183

1,176

Total Lone Parents

45,376

47,535

48,881

49,987

Long term illnesspayments

Disability Allowance

15,457

17,161

18,542

20,208

Occupational InjuryBenefit

309

322

321

332

Total Long Term Illness

15,766

17,483

18,863

20,540

Others*

73,157

63,822

54,394

47,871

*Almost all of these are either unemployment assistance, farm assist, supplementary welfare allowance, back to school or community employment.
Question No. 738 answered with Question No. 730.

Paul McGrath

Ceist:

739 Mr. P. McGrath asked the Minister for Social and Family Affairs if there is a review within her Department of qualifying conditions for old age contributory pensioners; and if she will provide a progress report on this review. [20203/02]

Paul McGrath

Ceist:

740 Mr. P. McGrath asked the Minister for Social and Family Affairs if, in relation to the assessing of old age contributory pensions, she has satisfied herself that the average system of contributions is fair, particularly if a small number of contributions in a person's early working career can result in a reduced pension despite having a full contributions record in later life; and if there is a discretion on whether those early contributions should be included. [20204/02]

I propose to take Questions Nos. 739 and 740 together.

In order to qualify for the maximum rate of the old age contributory pension, a person must,inter alia, have a yearly average of at least 48 contributions paid or credited on their social insurance record. Reduced pensions are however, paid for yearly averages below 48 and down to ten. In 1997 the minimum average number of contributions for which person could be paid was reduced from 20 to ten. A person with a yearly average of 48 contributions paid or credited from 1979 to age 66 can qualify for a full pension, regardless of previous contributions. Otherwise, average contributions are assessed over a person's working life, i.e. from the first time a person enters social insurance until he or she reaches retirement age.
In 2000, the Department published a review of the qualifying conditions for the old age contributory and retirement pension, phase one. This report proposed, among other things, that consideration be given to changing the basis of assessment for old age (contributory) and retirement pensions from the current system of average contributions to one based on total contributions paid or credited. The report considered that this would be a more straightforward and fairer way of assessing entitlement.
The phase two report is at an advanced stage of preparation and it is hoped to publish it as a discussion document in the near future. The report will assess the implications of a system of assessment based on total contributions and outline options for such a system, taking account of the potential people have for accumulating contributions and the developments in the social insurance system over the last 30 years which have resulted in considerably extended coverage of the workforce by the social insurance system.
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