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Social Welfare Benefits.

Dáil Éireann Debate, Tuesday - 3 February 2009

Tuesday, 3 February 2009

Ceisteanna (6, 7)

Olwyn Enright

Ceist:

104 Deputy Olwyn Enright asked the Minister for Social and Family Affairs the number of applications in 2008 with regard to mortgage interest supplement; the number of persons refused the payment; the average length of time to process an appeal; and if she will make a statement on the matter. [3537/09]

Amharc ar fhreagra

Freagraí ó Béal (16 píosaí cainte)

The supplementary welfare allowance scheme provides for a weekly or monthly supplement to be paid in respect of mortgage interest. The purpose of the supplement is to provide short-term income support to eligible people who are unable to meet their mortgage interest repayments for a house which is their sole place of residence. The supplement assists only with the interest portion of the mortgage repayments.

There are currently more than 8,500 people in receipt of mortgage interest supplement, an increase of over 4,400 over those receiving payment at the end of 2007. The scheme is administered by the community welfare service of the Health Service Executive on behalf of the Department and delivered locally by community welfare officers.

A community welfare officer interviews applicants for mortgage interest supplement when they first present in order to determine if they satisfy the statutory qualifying conditions for entitlement. They also ensure that all the documentation required to make a decision has been provided. Claim details are recorded electronically only in cases where it is established that mortgage interest supplement is payable. For this reason, statistics are not held on the number of people who were refused mortgage interest supplement. It is estimated, however, that on average 20% to 25% of claims are refused.

Under existing arrangements, an appeal against a decision on entitlement to mortgage interest supplement is made in the first instance to a designated appeals officer in the HSE. A person may, if they so wish, make a further appeal to the Social Welfare Appeals Office if they are dissatisfied with the decision of the HSE appeals officer. The average time taken to process an appeal to a HSE appeals officer is estimated to be approximately six weeks.

The Social Welfare Appeals Office has advised that it does not hold details of the average duration of a mortgage interest supplement appeal. However, the average duration of a supplementary welfare allowance appeal in 2007 which would include mortgage interest supplement was eight weeks. As priority is given to such appeals by the Social Welfare Appeals Office, processing times for 2008 are being compiled at present but are expected to be of the same order as in 2007 for supplementary welfare allowance appeals.

It is beyond belief that details are not held on the number of people who are refused the supplement or on the duration of appeals. I ask the Minister to deal with that matter and get the information, because I do not think one can make improvements to a system if one does not know the current situation in the system.

The Money Advice and Budgeting Service estimate that as the number of people looking for the supplement is rising, the number of people being refused it is not rising in direct correlation to the number of applications, which, if its figures are correct, would make the Department's estimate of 20% or 25% wrong.

Is the Minister aware that in June 2008, before the Government decided we were in a financial crisis, the Financial Regulator estimated that more than 14,000 mortgages were more than three months in arrears? When the new figures come out, the Minister will probably agree that will be in excess of that figure. In the current climate, considering the number of people who are in difficulty with their mortgages, will more money be made available than was in the budget?

The Minister should bear in mind that if homes are repossessed, people will receive rent supplement. The State will have to pay for these people one way or the other and it would be far better to keep them in their homes.

It is far better to keep people in their homes and the fear that they might lose their home is an added worry when they lose their jobs. A number of people have responsibility for this matter. The financial institutions themselves must ensure they are willing to reschedule payments from people who find themselves in difficulty.

We have flagged this as part of any recapitalisation programme for the banks and have also spoken about it in the framework document which was agreed last week. These are issues which financial institutions have to take very seriously. In fairness, the major financial institutions have foreclosed on very few people and are conscious of this situation. Where people go to them to seek a reschedule of a loan, they should agree to it.

The next step is for the person themselves to seek help with their interest. We have set aside a budget of almost €30 million this year to cope with the demand for mortgage interest supplement. As I indicated, more than 8,000 people are receiving it and we anticipate that there will be more. As the year progresses, we will keep the situation under review.

I will allow a brief supplementary question from Deputy Enright.

The amount allocated would not even allow for a doubling in the numbers who applied last year. There were 276 people put in prison last year for failing to make loan repayments. Not all of those people were jailed because of a failure to pay mortgages, but some were. Does this Minister think that is an adequate way of dealing with the situation?

The Minister said she flagged the attention of financial institutions to this issue and it is in the framework document. What exactly is she going to do to ensure financial institutions are not foreclosing on these people?

The Minister can make a final reply.

It is a matter for negotiation between the Government and the banks, particularly at the time of recapitalisation. It is one of the criteria mentioned and was a specific part of the framework document published last week. It would be distressing for people if they thought they would also lose their homes. The rescheduling of payments and support available for people through supplementary welfare can help them get over difficulties they are having.

Olwyn Enright

Ceist:

105 Deputy Olwyn Enright asked the Minister for Social and Family Affairs if she will confirm that the half-rate carer’s allowance will be protected in the context of budget cuts; and if she will make a statement on the matter. [3538/09]

Amharc ar fhreagra

The budget in 2007 provided for new arrangements whereby people can receive a maximum payment equivalent to a half-rate carer's allowance while receiving another social welfare payment, other than jobseeker's benefit or allowance. These measures came into effect in September 2008 and there are currently just over 16,100 people in receipt of half rate carer's allowance and another social welfare payment.

The introduction of the half-rate carer's allowance is only one of a number of improvements to payments to carers in recent years. Since 1997, weekly payment rates to carers have greatly increased, qualifying conditions for carer's allowance have significantly eased, coverage of the scheme has been extended and new schemes such as carer's benefit and the respite care grant have been introduced and extended.

The means test for carer's allowance has been significantly eased over the years, most notably with regard to a spouse's earnings. Since April 2008, the income disregard has been €332.50 per week for a single person and €665 per week for a couple. These levels surpass the commitment in Towards 2016 to ensure those on average industrial earnings continue to qualify for a full carer's allowance.

From June 2005, the annual respite care grant was extended to all carers who are providing full time care to a person who needs such care, regardless of their income. The rate of the respite care grant has also been increased to €1,700 per year in respect of each care recipient since June 2008. In June 2006, the number of hours for which a person can engage in employment, self-employment, education or training and still be considered to be providing full time care for the purposes of carer's allowance, carer's benefit and the respite care grant was increased from 10 to 15 hours per week.

In budget 2009, I increased the rate of carer's allowance for those aged 66 or over by €7 to €239 per week and for those aged under 66 by €6.50 to €220.50 per week. These increases took effect from January 2009. Recipients of carer's allowance are also eligible for household benefits, free travel and the respite care grant. It is estimated that combined expenditure on carer's allowance, carer's benefit, the respite care grant and half rate carers will be €650 million in 2009. I have no plans to change the conditions associated with half rate carer's allowance.

I welcome the Minister's answer that she has no plans. Why did she comment that this was a matter which was under consideration if she had no plans? Is she aware of the distress caused to many carers all over the country when the issue was raised and discussed?

Did the Minister have any discussions with the Minister for Health and Children, Deputy Mary Harney, on the knock-on effects of this decision? It is somewhat irrelevant if she is not going to cut the payment.

We have been waiting since December 2007 for the publication of a national carers' strategy which was committed to in the programme for Government. There may be associated costs, depending on what the strategy contains, but when will it be published?

I never said I was going to cut the half rate for carers.

The Minister said she was looking at it.

Nobody ever indicated that I was going to cut it. I never said it was under consideration.

The Minister said it was a target.

In fact, I specifically said in a newspaper article that I would not be recommending a change to the half-rate carers' allowance.

A week after her original order.

If the Deputy cares to read that interview, which was printed on the day, she will see that I said I would not be recommending it. It arose in the context of a question about major improvements that had been made in the past five years, which led to the social welfare budget now hitting almost €20 billion. I pointed to the fact that there had been major increases in pensions, as well as changes to the hours lone parents can work, major increases in child benefit and the introduction of the new half-rate carers' scheme. The latter scheme is costing €57 million this year. As I indicated, all the social welfare supports for carers alone cost almost €650 million, and probably more this year.

The strategy is being co-ordinated by the Department of the Taoiseach and involves quite a number of Departments. My Department's interest is only from a payments perspective. Of more importance to many carers are health and respite supports, home help, access to education and training. All those elements are important for carers. Undoubtedly, the current economic situation has made it more difficult not only for my Department but also for the HSE and the Department of Health and Children to be able to set out what targets they will be able to meet within a particular time. Therefore we are currently examining the draft document that has been prepared in order to see where we can take it from here.

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