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Social Welfare Benefits.

Dáil Éireann Debate, Wednesday - 10 November 2004

Wednesday, 10 November 2004

Ceisteanna (47, 48)

Michael Ring

Ceist:

89 Mr. Ring asked the Minister for Social and Family Affairs the numbers availing of and the amount of funding involved in the farm assist scheme in each year that it has been in operation giving details on a county by county basis; and if he will make a statement on the matter. [28182/04]

Amharc ar fhreagra

Freagraí scríofa

The details requested by the Deputy in so far as they are available are set out in the attached table. The cost of funding the farm assist scheme is not available in the format requested by the Deputy but I am providing a separate table of the total cost of the scheme on a yearly basis since its inception.

At the end of October 2004, there were 8,486 people in receipt of a farm assist payment. The amount paid to each farmer depends on a number of factors, for example, family size, whether the spouse-partner is working and any means assessed from all sources. The farm assist scheme is a practical response by my Department to the situation of low income farmers and it represents a long-term safety net for them. It benefits farm families with children and also provides increased payments to farming couples without children and to single farmers on low income.

The level of take up is less than had been anticipated when the scheme was first introduced in April 1999. One of the factors impacting on the take up of the scheme is the significant increase in off-farm employment in recent years. However, the benefits to those who have joined it have been significant. The scheme makes a valuable contribution to supporting those who are at the lower end of the farm income spectrum. In calculating means for the purposes of farm assist, account is taken of the gross yearly income which the farmer and his or her spouse/partner may reasonably expect to receive from farming or any other self employment, less any expenses necessarily incurred in carrying on the business.

Where a farmer disagrees with a means assessment, he or she may appeal the decision to the social welfare appeals office. In addition, where a farmer feels that his or her circumstances have changed since the most recent assessment, he or she may request a means review.

A new scheme, the rural social scheme, RSS, was introduced by the Minister for Community, Rural and Gaeltacht Affairs with effect from May 2004. This scheme is designed specifically for rural people and is a community work programme, with a focus on the provision of direct services in the community. At the end of September 2004, 45 farmers had transferred from farm assist to the rural social scheme.

The following table shows a breakdown by county of farm assist recipients. It should be noted that the figures have been compiled from data that is maintained on a local office catchment area basis and these do not correspond exactly with county boundaries.

County

1999

2000

2001

2002

2003

29/11/04

Carlow

53

58

72

72

71

61

Cavan

287

303

323

307

312

310

Clare

438

451

458

466

464

461

Cork

447

507

552

577

599

599

Donegal

1,007

1,100

1,165

1,211

1,219

1,183

Dublin

9

13

11

11

12

12

Galway

770

835

847

887

898

902

Kerry

686

696

705

691

694

657

Kildare

36

41

42

43

49

46

Kilkenny

78

98

111

112

128

128

Laois

68

77

89

94

94

87

Leitrim

223

238

247

250

260

225

Limerick

185

186

237

226

221

214

Longford

100

107

112

113

114

112

Louth

27

28

65

62

65

68

Mayo

1,228

1,492

1,570

1,593

1,647

1,605

Meath

57

58

62

58

60

56

Monaghan

339

378

401

404

408

416

Offaly

68

65

76

81

83

85

Roscommon

341

342

351

338

348

322

Sligo

243

281

313

341

366

352

Tipperary

170

179

207

231

226

221

Waterford

33

37

43

42

49

46

Westmeath

75

85

88

96

89

88

Wexford

109

118

130

147

175

174

Wicklow

40

37

35

45

52

56

Expenditure per year was as follows: 1999 —€19.861 million; 2000 —€41.425 million; 2001 —€50,650 million; 2002 —€58.571 million; 2003 —€62.806 million.

Róisín Shortall

Ceist:

90 Ms Shortall asked the Minister for Social and Family Affairs if he will increase the income eligibility limits for the retention of secondary benefits; and if he will make a statement on the matter. [28226/04]

Amharc ar fhreagra

Social welfare programmes aim to be responsive to the needs of those who depend on them while simultaneously providing opportunities to assist people to become more independent. A number of measures have been introduced in recent years to remove disincentives to taking up employment and to ease the transition from welfare to work. These measures include means disregards and tapered withdrawal of benefits as earnings increase, employment support schemes such as the back to work programme and support from facilitators from my Department's staff to assist with the transition to employment.

The income limit referred to by the Deputy applies to people who take up employment under approved employment schemes. Such people are entitled to retain certain social welfare and other benefits, known as secondary benefits, in total or in part for the duration of the scheme subject to certain conditions. For most people the most significant secondary benefit is rent or mortgage interest supplement which is paid under the supplementary welfare allowance scheme.

An income limit of €317.43 per week applies to these supplements. While this income limit has not changed since its introduction, significant other improvements have been made to the means test. Back to work allowance and family income supplement, in cases where one or both of these are in payment, are now disregarded in the assessment of the €317.43 weekly income limit. PRSI and reasonable travelling expenses are also disregarded in the means test.

In effect, this means that people who had been unemployed and who commence employment through the back to work scheme can have a weekly household income significantly in excess of the €317.43 limit in question and still qualify to retain 75% of their rent or mortgage interest supplement. In the first year on the back to work allowance, for example, a single person can have combined income from the back to work allowance and wages of €418.50 while a couple with two children can have an income of €510.75. Other improvements have also been made to the retention arrangements. The period for which rent or mortgage interest supplement may be retained has been extended to four years on a tapered basis, that is, 75% in year one, 50% in year two and 25% in years three and four. In addition, the maximum payment limit of €317.43 per month on the amount of supplement payable was abolished for people on approved schemes.

As a consequence of these improvements many families retain more of their rent or mortgage interest supplement than had been the case prior to these changes taking place. In addition, a person availing of an employment support scheme may opt to be assessed under either standard rules or under the special retention rules and will be entitled to receive payment under the more favourable option.

I consider that the secondary benefit income eligibility thresholds and disregards allow significant and realistic retention of these entitlements and are not acting as a disincentive to people to take up back to work opportunities. Any further changes to these arrangements would have to be considered in the light of other priorities and of the budget resources available.

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