Written Answers. - Departmental Expenditure.
Bernard J. Durkan
Ceist:
362
Mr. Durkan
asked the
Minister for Social and Family Affairs
the total value of savings accruing to her Department currently or in the future arising from recently announced expenditure cuts in the Book of Estimates; and if she will make a statement on the matter.
[29308/03]
Bernard J. Durkan
Ceist:
363
Mr. Durkan
asked the
Minister for Social and Family Affairs
the total number of restrictions or curtailments in respect of expenditure under various scheme headings which have either already been announced or are contemplated; the total cost of such curtailments to the likely beneficiaries under the scheme concerned; and if she will make a statement on the matter.
[29309/03]
I propose to take Questions Nos. 362 and 363 together.
The Abridged Estimates Volume (AEV) for 2004 provides for total social welfare spending of €10.65 billion. This represents an increase of €358 million or 3.5% and on the 2003 published Estimate. This increase does not take into account any additional social welfare spending to be announced in the budget.
In order to stay within Government spending guidelines, a number of policy measures were identified and announced as part of the Estimates process. I have no plans to announce further measures at this stage. It is estimated that the total value of savings from the measures in 2004 will be €55.8 million or 0.5% of total spending.
The specific policy measures are detailed, as follows, together with an estimate for its associated savings. The back to education allowance is being refocused on people who are long-term unemployed in that the qualifying period for the allowance is being increased from six months to 15 months in respect of the third level option, for all new claimants with effect from September 2004. Estimated savings are €2.2 million in 2004. Transitional payments for recipients of the one parent family payment – where earnings rise over €293 per week – will be discontinued from next January. Savings in 2004 will be €1.3 million.
An increase in the rate of the minimum contribution to be made by the recipient from €12 to €13 per week. This measure will result in savings of €3 million in 2004. A measure which provides that if either of a couple is in full-time employment, they will be excluded from claiming rent/mortgage supplement will save €1 million in 2004.
Health boards will be given the power to refuse rent supplement in cases where the applicant has not already been renting for a period of six months, with provision for exceptions in relation to e.g. the homeless and people who are at risk, with estimated net saving of €10.5 million in 2004.
Rent supplement claimants will be referred to the local authority to have their housing needs assessed. In addition, any applicant who has left or refused offers of local authority housing will be refused rent supplement. It is estimated that this will generate savings of approximately €0.6 million in 2004.
Payment of certain other supplements under the supplementary welfare scheme are being phased out or discontinued in the light of changes in the environment in which these supplements apply or where they have been applied beyond what was originally intended. This will apply to crèche, money advice and budgeting service and diet supplement, with savings of some €2.3 million, €0.7 million and €1 million respectively in 2004.
Entitlement to child dependent allowance will be discontinued in January 2004 in respect of unemployment benefit and disability benefit claims where the claimant's spouse-partner has gross weekly earnings in excess of €300. This provision is estimated to save €10.4 million.
In the case of disability benefit, unemployment benefit and health and safety benefit, the weekly earnings threshold of €88.88 for the purpose of payment of reduced rates which has not being adjusted in line with increases in benefit since its introduction in 1993 will be increased to €150. The increase will result in net savings of €7.4 million.
Entitlement to the additional half rate payment of disability benefit, injury benefit, unemployment benefit, unemployability supplement, maternity benefit, adoptive benefit and health and safety benefit – currently payable at half rate – where the recipient is already in receipt of widow/er's pensions, lone parent payments etc., for new claimants, will be discontinued. A saving of €5.8 million is estimated for 2004.
From April 2004, the linking period for unemployment benefit and disability benefit claims will increase from 13 weeks to 26 weeks. This condition will apply to approximately a weekly average of 275 claimants and result in a saving of €2 million.
The underlying number of paid contributions required for entitlement to disability benefit, unemployment benefit and health and safety benefit will be increased from 39 to 52 paid contributions. €2.5 million will be saved in 2004.
Entitlement to unemployment benefit will be reduced from 15 months to 12 months where less than 260 social insurance contributions have been paid since first entering employment. This measure will save some €5.2 million in 2004.
