Dáil Éireann Debate, Wednesday - 15 December 2004
62 Mr. Deenihan asked the Minister for Social and Family Affairs if he will report on the most recent review of the back to school clothing and footwear allowance; and if he will make a statement on the matter. [33510/04]
Amharc ar fhreagraThe back to school clothing and footwear allowance scheme assists low income families with extra costs when children start school each autumn. The scheme operates from the beginning of June to the end of September each year and is administered on behalf of my Department by the health boards.
A person may qualify for payment of a back to school clothing and footwear allowance if he or she is in receipt of a social welfare or health board payment, or is participating in an approved employment scheme or is attending a recognised education or training course, and has household income at or below certain specified levels. Under the scheme an allowance of €80 is payable in respect of qualified children aged from two to 11 years. An allowance of €150 is payable in respect of qualified children aged from 12 to 22 years.
A total of 75,807 families have received the back to school clothing and footwear allowance this year. This has benefited some 158,000 children.
As part of the expenditure review initiative under way in all Departments, a working group was established to undertake a fundamental examination of the back to school clothing and footwear allowance scheme. The report of the working group was finalised in August 2004 and has been forwarded to the central expenditure review initiative steering committee for final consideration. I expect that this process will be completed soon, to enable publication of the report early in 2005.
In its detailed report, the review working group addressed all aspects of the efficiency and effectiveness of the scheme, including the administrative system for making payments and their timing, the identification of the target group, the level of take up of the allowance by potential clients and, the adequacy of the payment rates. It also addressed the appropriateness of the eligibility criteria and the role of the scheme in encouraging participation in education by children of low income families.
The working group analysed a number of policy options for the scheme. The review concluded that, while the scheme continued to be worthwhile in its own right in its current format, consideration should be given to subsuming it into any future development of a broader so-called second tier of child income support as proposed by the National Economic and Social Council.
Pending any such future general developments in relation to child income support, the review findings were that: the scheme should continue in its current format and be administered by the health boards; steps should be taken to publicise the scheme more; orphans' payments should be regarded as a qualifying payment for the scheme; and the scheme payment rates and income limits do not warrant adjustment, in light of real increases in the value of the allowance and of social welfare rates generally in recent years compared to the trend of reduction in the cost of clothing and footwear. I will give the review findings full consideration when the report is finalised.
63 Mr. Morgan asked the Minister for Social and Family Affairs when maternity benefit will be increased to 80% of reckonable earnings in line with the commitment made in the review of Sustaining Progress. [33317/04]
Amharc ar fhreagraMaternity benefit is an income support payment awarded to eligible women for an 18 week period before and after the period of expected confinement. The benefit is a social insurance based benefit whereby eligibility is determined by having the appropriate number of PRSI contributions, classes A and S, in the relevant tax year or in other years.
The rate of payment is determined by the level of earnings in the relevant tax year subject to a ceiling, of which 70% is then paid, subject to a minimum payment. This minimum rate is linked to disability benefit rates.
As maternity benefit is not subject to taxation, the figure of 70% represents what would be net pay after deduction of taxation. A recent re-examination of this issue by a social partnership working group found that, given the reduction in taxation in recent years, this figure probably overstated the level of tax due and that the 70% might be increased to 80%.
The recent mid-term review of Sustaining Progress contained a commitment to increase maternity benefit from 70% to 80% of reckonable earnings over the period of the agreement. The Government has since agreed that it can be achieved over two years, namely, in budgets 2005 and 2006.
Budget 2005 provided for the first phase of this measure to be implemented with a change from 70% to 75%. This increases the maximum possible rate of payment to 75% of the earnings ceiling of €332. This change in the percentage level of reckonable earnings limit will benefit all recipients except those whose earnings are so low that they will continue to be entitled to the minimum payment.
As rates of adoptive benefit are linked to those of maternity benefit, the Government has agreed to go beyond the immediate commitment in Sustaining Progress to amend these percentage rates in line with those of maternity benefit.
Both measures will come into effect in January 2005. It is estimated that on average the position of 8,150 women per week will be improved by this measure and that it will cost €6.46 million in 2005 and in a full year.
