Vol. 576 No. 5
448 Mr. Deasy asked the Minister for Social and Family Affairs if there are plans to withdraw budget supplements which are administered by community welfare officers; if her attention has been drawn to the concern being expressed by the money advice and budgeting service set up by the Department of Social and Family Affairs to assist people with financial difficulties; and if she will make a statement on the matter. [29733/03]
Subject to certain conditions, any person in the State whose means are insufficient to meet his or her needs may be entitled to assistance under the supplementary welfare allowance scheme. The scheme is administered on behalf of my Department by the health boards. The objective of the scheme is to meet immediate, short-term income maintenance needs. The scheme is not intended to be a long-term ongoing solution in an individual case.
My Department has overall responsibility for the money advice and budgeting service, MABS, which provides assistance to people experiencing indebtedness. There are 52 independent companies nationwide operating the service. The key feature of the MABS programme is the provision of money advice, including the publication of information on money management and debt counselling. The service is targeted primarily at individuals and families who have problems with debt or moneylending and who are on low income or in receipt of social welfare payments. The service places an emphasis on practical, budget-based measures that succeed in removing people permanently from dependence on moneylenders and open up alternative sources of low cost credit. In 2003, I have provided €9.9 million for the operation of the MABS and an additional €1.01 million is being provided for next year. The latest information available from the companies providing the service shows that some 12,000 people avail of the service.
Separate from these arrangements, ongoing weekly payments, known as MABS supplements, have been paid under the supplementary welfare allowance scheme. The duration of these payments confirm that the supplement has in effect become a long-term arrangement which is effectively a subsidy for creditors.
Payments have been made in these cases because the people concerned have entered into repayment arrangements that are so onerous that they do not have enough income left to meet their basic needs. This is unrealistic and unsustainable, and providing a weekly supplementary welfare allowance payment is not the solution. Creditors should accept a more realistic repayment arrangement in these cases. It is with the support and expertise of the MABS companies that people can be best assisted in sorting out their debts and these companies will continue to provide their services.
