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Departmental Budgets

Dáil Éireann Debate, Wednesday - 5 December 2018

Wednesday, 5 December 2018

Ceisteanna (304, 305)

Charlie McConalogue

Ceist:

304. Deputy Charlie McConalogue asked the Minister for Employment Affairs and Social Protection the budget 2019 allocation to farm and fish assist. [51180/18]

Amharc ar fhreagra

Charlie McConalogue

Ceist:

305. Deputy Charlie McConalogue asked the Minister for Employment Affairs and Social Protection the estimated cost of a proposal (details supplied) over a calendar year and taking into account changes announced in budget 2019. [51181/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 304 and 305 together.

The farm assist (FA) scheme provides support for farmers on low incomes and is similar to jobseeker’s allowance. Recipients retain the advantages of the jobseeker’s allowance scheme such as retention of secondary benefits and access to activation programmes. The 2019 Budget Allocation for the Farm Assist scheme (including fish assist) is some €72 million.

Budget 2017 fully reversed the previous cuts to the Farm Assist means test. The changes included that 70% of farm income is now assessed as means, down from 100% being assessed as means (which is equivalent to a 30% income disregard) and an additional annual means disregard of €254 for each of the first two children and €381 for the third and subsequent children.

The assessment of means for the purpose of qualifying for farm assist is designed to reflect the actual net income from farming. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, account is taken of any exceptional circumstances so as to ensure that the assessment accurately reflects the current situation. It may also be noted that farm assist customers continue to receive more beneficial treatment than other self-employed persons as payments received under the Agri-Environment Options Scheme (AEOS), Green Low-Carbon Agri-Environment Scheme (GLAS) or Special Area of Conservation (SAC) schemes are assessed separately from other farm income. With regard to this income the first €2,540 is disregarded, and then 50% of the balance and related expenses are disregarded - with the balance being assessed as means.

It is estimated that the cost of changing the farm assist means testing rules in order that irrespective of the source of income the first €3,000 would be disregarded and the balance would be means tested at 50% would be approximately €13 million for a full year. This estimate is based on the existing number of recipients and current rates. However, it is envisaged that there may be an increase of new farm assist claims if these measures were introduced. Therefore, the estimated cost of €13 million should be regarded as a minimum estimate.

Budget 2019 provides for a €5 per week increase in the personal rate of payment for FA from €198 to €203 per week from 25 March 2019 with proportional increases for qualified adults and children.

Any further changes to this scheme would have to be considered in a budgetary context and within the scope of the overall resources available for welfare improvements.

I trust this clarifies the matter for the Deputy

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