Séamus Brennan (Dublin South, Fianna Fail)

I propose to take Questions Nos. 62 and 64 together.

Disability allowance is a personal allowance payable to people between 16 and 66 years of age who satisfy certain medical eligibility conditions and a means test. Under existing social welfare legislation, disability allowance is not payable where a person is resident in an institution and where the cost of his or her care and maintenance is being funded in whole or in part by the Health Service Executive.

Since the introduction of the scheme in 1996, the restriction on payments to people in institutional care has been progressively relaxed. For example, the Social Welfare Act 1999 made provision for the retention of entitlement to disability allowance where a person is on disability allowance and subsequently goes into institutional care. My Department does not hold precise figures on the number of people who are resident in institutions at any given time and who are in receipt of disability allowance. There are many such institutions and recipients may move between institutional or community-based settings and their home, depending on their circumstances. My Department's role is, in the first instance, to ensure payment of the allowance to the person concerned or their appointed agent.

With regard to the number of people with disabilities who are resident in institutions and who do not receive disability allowance, the Deputy will be aware that in the context of budget 2005, I announced that I would remove the restriction on entitlement to disability allowance in such cases. With effect from 1 June 2005, I will introduce a new weekly personal payment of up to €35 to people resident in institutions who are not getting a disability allowance payment. This allowance will replace the existing pocket money allowance which is paid to such residents by the Health Service Executive. My Department has already completed an information gathering process with the Health Service Executive with a view to arranging the payment of this new allowance. This process has identified that 2,469 persons with disabilities between 16 and 66 years of age, who currently reside in an institution on a permanent basis, do not have a disability allowance. The provisions for this allowance are contained in the current Social Welfare and Pensions Bill which is before the House.

In regard to payments to people in institutional care, the practice generally has been that when social welfare pensioners took up residence in long-stay residential care centres operated by the health boards, the board was appointed as an agent for the purpose of cashing the person's weekly pension or allowance and any charges towards the maintenance of people in institutions were normally deducted from these payments. Following instructions in December to the Health Service Executive, no maintenance charges for long-stay care are now being levied. Until such time as alternative arrangements can be made, the Health Service Executive has continued, in a temporary capacity, to act as an agent for the purpose of cashing pension or allowance books. These pension payments are being lodged in all cases to a patient's private property account which is being maintained by the Health Service Executive for each individual resident. Pensioners have full access to this account whenever they wish.

I understand that the Health Service Executive is in the process of writing to all social welfare pensioners in its care to advise them that maintenance charges no longer apply and that pension payments belong in full to pensioners themselves. Where a pensioner is unable, for whatever reason, to manage his or her own financial affairs, the Health Service Executive is making arrangements to inform the next-of-kin of the position. The HSE is also advising pensioners of the various options open to them for receiving their pension payments. These comprise continuation of the existing arrangement whereby the HSE cashes the pension book on the pensioner's behalf and lodges the payment to the patient's private property account; payment of the pension into a bank or building society account or a post office pensions savings account; and cashing the pension at a post office by the pensioner or appointment of another person, such as a relative, to act as an agent to cash the pension book on the pensioner's behalf.

A national implementation group of the HSE is responsible for ensuring that pensioners are fully advised of these new arrangements and my Department is represented on this group. My Department has primary responsibility for issuing payments to pensioners and ensuring that they are satisfied with the method of payment and the security of their payments. I have asked my officials to liaise with the Department of Health and Children and the Health Service Executive to ensure that all appropriate arrangements are made in this regard.

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