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Social Welfare Benefits.

Dáil Éireann Debate, Wednesday - 28 April 2004

Wednesday, 28 April 2004

Ceisteanna (102, 103, 104)

Olwyn Enright

Ceist:

121 Ms Enright asked the Minister for Social and Family Affairs the number of persons in receipt of the back to work allowance scheme and the numbers who availed of the scheme in 2002 and 2003. [12164/04]

Amharc ar fhreagra

Freagraí scríofa

The back to work allowance was introduced in September 1993 as part of my Department's programme of initiatives designed to assist the long-term unemployed to return to the active labour force. The allowance was introduced at a time when long-term unemployment stood at 8.9%. In its early years, the scheme proved effective in helping people who had been long-term unemployed to return to the labour force.

The transformation in labour market conditions since the mid-1990s has reduced the need for a back to work scheme. This is illustrated by the drop in numbers availing of the scheme in recent years. In December 2002, there were 25,076 participants — 13,510 on the self employed strand of the scheme and 11,566 on the employee strand. By December 2003, the number had fallen to 17,069 — 9,872 self employed and 7,197 employees. At present, there are 14,719 participants in the scheme, compared to 39,343 in October 2000 when the scheme reached its peak.

Question No. 122 answered with QuestionNo. 70.
Question No. 123 answered with QuestionNo. 86.
Question No. 124 answered with QuestionNo. 87.
Question No. 125 answered with Question 70.

Dan Boyle

Ceist:

126 Mr. Boyle asked the Minister for Social and Family Affairs the reason invalidity pension remains the only such social welfare payment not awarded through the EMTS system; and when payments of this type can be made. [12089/04]

Amharc ar fhreagra

The EMTS system to which the Deputy refers is an electronic money transfer system operated by one of the major banks. It is an electronic fund transfer or EFT system similar to those operated by the other banks and building societies. An Post also operates an EFT system which it calls electronic information transfer or EIT.

My Department's payment strategy aims to actively promote the use of electronic payment methods as the preferred payment option in line with the Government's e-services policy. Of the 60 million individual payments made by my Department in 2003, 38% were paid by electronic methods, 29% were by electronic fund transfer, EFT, to banks and building societies and 9% were via An Post's electronic information transfer system (EIT) at post offices.

At the end of March 2004, there were 11,818 invalidity pensioners in receipt of payment through this method. Electronic payment methods are available to people on all of my Department's disability payments with the exception of disablement benefit under the occupational injuries benefits scheme. It was not possible to provide an EFT or EIT option for all social welfare customers. This is because my Department uses a number of different computer systems to administer the various social welfare schemes. The introduction of EFT or EIT for each specific scheme requires a considerable investment in information technology. Each scheme enhancement is a major project regardless of the customer numbers involved. For this reason the computer systems which serve the largest number of customers were the first to be enhanced to provide EFT and EIT.

The disablement benefit system was a lower priority because of the relatively small numbers of people served by the system. It is expected, however, that EFT and EIT facilities will be available to disablement benefit customers early in 2005. In the meantime, my Department offers an arrangement to disablement benefit customers which delivers some of the benefits of EFT. Customers can request that their cheques be sent to their banks rather than to their home addresses. The banks will then lodge the cheques directly to the customers' accounts.

Pat Rabbitte

Ceist:

127 Mr. Rabbitte asked the Minister for Social and Family Affairs if she has satisfied herself that enough is being done to promote awareness of family income supplement, in view of the fact that there are currently only just over 12,000 recipients, having regard to the numbers on low pay and those who do not earn sufficient to enter the tax net; if there is co-ordination with the Revenue Commissioners on this matter; if she has plans to promote greater awareness of FIS; and if she will make a statement on the matter. [12060/04]

Amharc ar fhreagra

Family income supplement is designed to provide cash support for employees on low earnings with families. This preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if he or she were claiming other social welfare payments. The number of persons in receipt of family income supplement at 16 April 2004 is 12,003, with an average weekly payment of €82.51.

The improvements to the family income supplement scheme, including the assessment of FIS on the basis of net rather than gross income and the progressive increases in the income limits, have made it easier for lower income households to qualify under the scheme. In this year's budget, I provided for further increases in the FIS income limits with effect from January 2004. These increases raised the weekly income limits by €28 at each point, adding an extra €16.80 to the payments of most existing FIS recipients. I also increased the minimum FIS payment by €7 per week, from €13 to €20.

On the question of take up, a working group, chaired by the Department of Finance, was established to examine the role which refundable tax credits could play in the tax and welfare system, with a specific brief to examine the possible payment of FIS through the tax system. While the group's final report is awaited, I understand that the principal recommendations regarding FIS are likely to be to continue payment through the social welfare system while maximising effects to increase take up.

My Department undertakes a number of proactive measures to ensure that people are aware of possible entitlement to FIS, which include advising all newly awarded one-parent family payment recipients, advising all employers annually in PRSI mailshots and examining entitlement in all awarded back to work allowance cases. Information on FIS is contained in all child benefit books and can be accessed on the Department's website. In addition, the scheme has been extensively advertised through local and national media outlets, including newspapers and radio, as well as through poster campaigns and targeted mailshots.

Every effort will continue to be made to publicise family income supplement and to increase peoples' awareness of their social welfare entitlements generally.

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