Mary Hanafin (Dún Laoghaire, Fianna Fail)

As an alleviating measure, the age for entitlement to the domiciliary care allowance is being increased from 16 years to 18 years. It is estimated that a weekly average of 539 persons will be affected by this measure in 2009 and 2,115 in a full year. These changes are expected to save €5.6 million in 2009 and €16.6 million a year from 2010.

The changes being made this year to illness benefit and disability allowance are intended as only the first steps in the modernisation of the illness and disability schemes. A comprehensive approach will be developed when the reports of the current review of the disability allowance scheme and the OECD review are finalised and the Department has had the opportunity to assess them fully.

The final expenditure control measure relates to the rent and mortgage interest supplements. All recipients of these payments are expected to make a personal contribution towards their accommodation costs from their own resources. The minimum level of this contribution is currently set at €13 per week. This rate has not been increased since January 2004, despite the fact the lowest rate of social welfare payment has risen by nearly €70 per week since then. It is also significantly less than the minimum rent paid by local authority tenants which, for example, is €24.87 in Dublin city and €26 in County Limerick.

As of 1 January 2009, the minimum personal contribution to rent and mortgage interest supplement is being increased by €5 to €18 per week. With some 72,000 people in receipt of rent and mortgage interest supplements, this measure is expected to generate €19 million per annum from 2009 onwards.

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